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Generic Tax Name VAT - Canary Islands
Tax name in the national language Impuesto General Indirecto Canario
Tax name in English Canary Islands General Indirect Tax
Member State ES-Spain
Tax in force since 1993/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Law Nº 20 of 7 June 1991 on CIGT

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by


Central Government has delegated the competence to set tax rates to the Regional Government.



Geographical Scope
Territories excluded (article 6 2006/112/EC)

Territory excluded from VAT

The Canary Islands.
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Special scheme for SMEs (article 281 2006/112/EC and following) None
Graduated relief
Turnover threshold: 29,015.00  EUR/Natcur

Turnover threshold only applies to natural persons until 31/12/2012

Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
1.00 %
Flat rate compensation percentage for forestry:
1.00 %
Flat rate compensation percentage for fisheries:
1.00 %

There is a special scheme on the following


Special derogations to continue to tax (annex X)


Special derogations to continue to exempt (annex X)


  • Natural or legal persons who exercise business or professional activities and make taxable supplies of good and services.
  • Traders or professional persons fro whom taxable transactions are carried out where this is done by persons or entities not established in the Canary Islands.
  • Importers, whether or not traders or members of the professions.
  • Undivided estates, persons owning goods in community and other economic units with no legal personality where these carry out taxable transactions.
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)


The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)


Self-consumption operations no subjet to tax

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Free transactions amon related parties are subject to the IGIC.

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible

  • Supplies of goods and services made by traders of professional persons for consideration, habitually or occasionally, in the course of their business or professional activity
  • Import of goods.


The basis of assessment consist of the total value of consideration for the taxable transactions.

Deductions, Allowances, Credits, Exemptions
Exempted sectors*

See below

Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

Not applicable



The amount of IGIC paid on the acquisition of goods or services directly linked to the business or professional activity of the taxable person is generally deductible from the amount due in respect of that person's activity.



There are several categories:

  • Domestic transactions: health; social security; education; non-profit-making bodies; insurance and reinsurance; finance; supplies of non-building land; second and subsequent supplies of buildings; certain leases of property; transactions associated with intellectual property; retail trade; tax threshold until 31/12/2012; acquisition of capital assets and intangibles under certain conditions.
  • Exports and like transactions.
  • Transactions relating to special and suspensive customs procedures, for example customs warehouses.
Rate(s) Structure
Standard VAT rate Rate: 7.00 %

The standard VAT rate is 7.00% from 01/07/2012.

Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 0.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)

Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:No

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:No


Reduced rates: 3%

Increased rates: 9.5%, 13.5% and 20%

Tax due date

Tax collector

Quarterly or monthly returns, with self-assessment (large firms and exporter must submit monthly returns).

Special features

Special features

The following special schemes exist, in accordance with Community rules (Articles 24 to 26 of the sixth directive):

  • small and medium-sized firms (simplified scheme), whose content is coordinated with personal income tax - modular assessment;
  • second-hand goods;
  • travel agencies;
  • retailers;
  • crop and stock farming.
  • Investment gold.
  • Group of entities
  • Cash Accounting
Economic function

Environmental taxes

Tax revenue
ESA95 code d211b

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 932.00 EUR 0.09
2011 829.00 EUR 0.08
2010 809.00 EUR 0.07
2009 737.00 EUR 0.07
2008 1,226.00 EUR 0.11
2007 1,271.00 EUR 0.12
2006 1,079.00 EUR 0.11
2005 1,018.00 EUR 0.11
2004 1,053.00 EUR 0.12
2003 857.00 EUR 0.11
2002 932.00 EUR 0.12
2001 767.00 EUR 0.11
2000 740.00 EUR 0.12