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A more simplified presentation of the I.G.I.C.

imagen impuesto IGIC canario

Telecomunicaciones Telecolanza en Lanzarote, Canarias

From now on, the presentation of the I.G.I.C. (General Indirect Canary Islands Tax) is going to be easier. Three organisms have joined forces to do that: the Regional Economic and Tax Office of the Canary Government, the Canary Tax Agency (A.T.C) and the State Tax Administration Agency (A.E.A.T.)

This about the Immediate Information Delivery Project (S.I.I. in Spanish). Invoices provided through this system could be charged in real time. The system has already been running for a year in the A.E.A.T. for managing the VAT.

It will be mandatory to use the S.I.I. for large companies and companies which the I.G.I.C. benefits are applicable. Other companies may also voluntarily use it if they do not fulfil the above requirements but wish to do so.

This system will be operational in January 1, 2019. With a previous trial period beginning in October.

What is the I.G.I.C.

We have already explained in a previous article the I.G.I.C. In case there is someone who doesn’t know it, we will refresh a little bit the meaning: Its acronym means “General Indirect Canary Islands Tax”. It is the tax applied to the sale of products and services in the Canary Islands. The way it is applied is very similar to the VAT; although its tax rate is much lower (7%).

As indicated by Rosa Dávila, Finance Minister, “The I.G.I.C. is one of the best indicators to know the state of domestic consumption, so the figures show that the macroeconomic figures are, finally, landing on the reality of the Canary families”. She stated this after revealing that the collection of this tax has grown an 18% in the first months of 2018 compared to the same period in 2017.

This tax must be submitted by all persons or entities which carry out business activities. Depending on the case, different models will be used. Self-employed-workers and SME’s in the direct estimate tax regime should present the 420 model. If their operation system is based on modules, the 421. In the annual statements the 425 should be used, and in the information statements the 415.