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Spain – Canary Islands budget

By January 30, 2020July 10th, 2021No Comments

The Canary Islands budget bill will be applied as from January 1, 2020 (it is currently under parliamentary procedure) foresees the following change in the IGIC tax rates…

The Canary Islands budget bill will be applied as from January 1, 2020 (it is currently under parliamentary procedure) foresees the following change in the IGIC tax rates, that will entail a necessary upgrade of the ERPs of affected companies:

  • General rate increase from 6.5 percent to 7 percent
  • Increased rate increase from 13.5 percent to 15 percent
  • Adaptation of retail trade import surcharges to these new tax rates, so that imports of goods subject to the 7 and 15 percent rates will be subject to 0.7 and 1.5 percent surcharge rates, respectively
  • The reduced rate of 3 percent for telecommunications services is eliminated, so such services will be taxed at the general rate of 7 percent

Thus, companies that currently file the IGIC returns should be prepared to implement as from the 1st of January 2020 the new tax codes for the sales and purchases carried out in the Canary Islands.

 

The above information was kindly provided by Pablo Lujan from IVA CONSULTA, Spain. If you need any further information you can contact Pablo, email to: pablolujan@ivaconsulta.com.