The Canary Islands' unique tax system, known as IGIC (Impuesto General Indirecto Canario), serves as the region's version of Spain's VAT. Established in January 1993, IGIC is a general indirect tax applied to consumption within the Canary Islands, including its territorial sea and airspace. While it functions similarly to mainland Spain's VAT, IGIC operates under a distinct set of rules and tax rates.
Indirect tax on Canary Islands—how is it regulated?
Public
Spain
Author: Nikolina Basic
Category:
Fiscal subject related
Views:
4170
Content accuracy validation date:
15.08.2024
Content accuracy validation time:
09:11h
Unlike the three-tier system of VAT, IGIC encompasses six different tax rates: 0%, 3%, 7%, 9.5%, 15%, and 20%. These lower tax rates and broader range of categories make IGIC more favorable for consumers and businesses in the Canary Islands. Each rate is designed to apply to specific goods and services, allowing for more nuanced taxation that benefits various sectors uniquely.
Entities required to declare IGIC include SMEs, self-employed workers, and any businesses involved in operations subject to IGIC in the Canary Islands. These declarations are essential for maintaining compliance with local tax regulations and ensuring accurate tax reporting. Form 420 is used by SMEs and self-employed workers to declare IGIC, while Form 415 is used for informative declarations related to IGIC tax. These forms ensure that all relevant transactions and tax liabilities are accurately reported and managed.
The benefits of IGIC for businesses include lower tax rates, ZEC exemptions, reduced corporate tax rates, and incentives like the Reserva Inversiones de Canarias (RIC) that promote economic growth and development in the Canary Islands. This structure not only supports local businesses but also encourages economic growth and development in the region.
Other news from Spain
New document was uploaded: Certification process in Spain
Spain
Author: Nikolina Basić
The purpose of this document is to explain the certification process of POS in Spain. Spain introduced fiscalization for the first time. Certification process in Spain is quite specific and handled as a self-verification procedure. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Fiscalization in Spain: outdated software in Spain
Spain
Author: Nikolina Basić
Who bears the responsibility for outdated software in Spain? The responsibility for maintaining compliant sales software lies with the user, not the software provider. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Seamless Sales Continuity: How Verifactu Handles Billing Disruptions Without Stopping Business
Spain
Author: Nikolina Basić
In Verifactu mode, temporary disruptions such as internet or hardware issues trigger an automatic retry process, ensuring billing records are resent hourly until successfully submitted. Discover more insights as follows. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: The Royal Decree 254/2025
Spain
Author: -----------
This is the Royal Decree 254/2025, of April 1, amending Royal Decree 1007/2023, of December 5, approving the Regulation establishing the requirements to be adopted by computer or electronic systems and programmes that support the invoicing processes of entrepreneurs and professionals, and the standardisation of billing record formats. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
The Navarre government adopted Anti-Fraud Plan for 2025–2027-fiscalization rules.
Public
Spain
Author: Nikolina Basić
Spain
Author: Nikolina Basić
Navarre has approved its 2025–2027 Anti-Fraud Plan, introducing a fiscalization system similar to TicketBAI and VeriFactu, along with the NaTicket project for real-time billing data transmission. The plan also emphasizes taxpayer support, digital accessibility, education, and enhanced tax controls, including measures on crypto assets and forensic auditing. The Government of Navarre has officially... Read more
Spain tightens certification requirements for Billing Software producers under Royal Decree 1007/2023.
Spain
Author: Nikolina Basić
Under new guidelines from Spain's Ministry of Finance, billing software producers must now provide detailed system and producer information to meet compliance standards set by Royal Decree 1007/2023. This mandatory certification requires a "responsible declaration" that includes clear identification of the software's functionality and the producer's details. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Fiscalization in Spain: is it allowed to have a pre-billing (draft) of invoices and billing records before generating an invoice or billing record?
Spain
Author: Nikolina Basić
Spain’s Royal Decree 1007/2023 clarifies that computerized invoicing systems (SIF) may generate pre-invoices or proforma invoices, but these must be fully integrated with the official invoice issuance system. All preparatory documents must be preserved, directly linked to the final invoices, and remain traceable even if no final invoice is issued. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login