All you need to know if you are a company and you are affected by the Impuesto General Indirecto Canario

The IGIC is an indirect tax that is applied in the Canary Islands for sales and provision of services.

Entrepreneurs, when buying or selling goods or services for their business, have to pay a percentage of IGIC. For purchases being an input IGIC and for sales an output IGIC. Since this year the tax has been changed to 6. 5%, prior to this date the IGIC was 7%. This tax will only affect you if you have any link at the level of residence or purchase sale with the islands.

How to bill the Canary Islands?

The delivery of goods and services to the Canary Islands is considered an import and it is exempt from VAT. While it is important that when billing the Canary Islands is important tell the difference whether we will sell products or services or if the delivery will be to a company or a private individual.

Product sales. In this case is considered export and is exempt from VAT. Therefore, the buyer must pay the IGIC.
Provision of services to an individual. In this case we must apply VAT, even if the customer resides in the Canary Islands. However, if we are dealing with telecommunications services, broadcasting and television, or are made electronically, we will have to apply the IGIC.
Provision of services to an entrepreneur. We will send the invoice as if it were exempt from VAT. The recipient must apply the IGIC upon receipt.

In this case there are also certain exceptions such as advertising services, consultancy, lawyers, etc. VAT will be applied to those services provided in the Canary Islands with peninsular use.

Customs requirements for transporting goods to the Canary Islands from the Peninsula

As a Community territory, goods shipped from the Peninsula are duty free. In addition, they are exempt from excise duties and VAT. The goods arriving there from the peninsula will have to support the IGIC. If applicable, the AIEM (Arbitrio Insular de la Entrada de Mercancía) tax of the Canary Islands Government will also be applied.

If the value of the goods does not exceed 3,000€ or is a transfer within the same company, may be exempt from the issuance of the Documento Único Aduanero (DUA), provided that the goods are placed under a customs procedure within the period of temporary storage.

Taxes in invoices of companies of the Peninsula

Companies and self-employed people from the peninsula who sell to the Canary Islands should not include VAT in their invoices. In the case of the Canary Islands buyer of goods, he will have to pay the relevant IGIC requested by customs.

Who must file the IGIC declaration?

Persons or entities that habitually carry out business or professional activities. In the case of imports, the declarant is the importer, even if he is not an entrepreneur or a professional.

Lamaignere has its own offices in Las Palmas and Tenerife, which generates knowledge of the Canary Islands market and when transporting with the Canary Islands, customers have guarantees of security and trust.

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