What is the IGIC?
The Canary Islands General Indirect Tax (IGIC) is the tax that applies in the Canary Islands instead of VAT. It is regulated by Law 20/1991, on the Canary Islands Economic and Tax Regime, and is managed by the Canary Islands Tax Agency (ATC), not the AEAT.
It works like VAT: you charge IGIC on your invoices, deduct what you have paid on your purchases and declare the difference each quarter. But you don’t file Form 303: in the Canary Islands its equivalent is Form 420.
IGIC rates
| Rate | Applies to |
|---|---|
| General | Most goods and services, including professional services without a rate of their own. |
| Reduced | The goods and services the law lists for this rate. |
| Zero | Certain goods and services set by law. |
| Increased | Some specific goods set by law. |
We don’t give the percentages here: check the current rates and deadlines with the Canary Islands Tax Agency, which publishes them and can change them.
Form 420 and its deadlines
Form 420 is the quarterly IGIC self-assessment under the general regime. It is submitted every quarter to the Canary Islands Tax Agency, within the period it sets.
The dates for each year, with the shifts when the last day is a non-working day, are published by the ATC in its tax calendar: check the current deadlines there. The income tax deadlines, which are still the AEAT’s, are in the self-employed tax calendar.
The small entrepreneur or professional regime
Self-employed individuals with a low volume of transactions can be in the Special Regime for Small Entrepreneurs or Professionals (REPEP): their transactions in the Canary Islands are exempt from IGIC and they don’t file the quarterly Form 420. To qualify there is an annual limit on the volume of transactions; the current one, how to qualify and from when it applies to you are explained by the ATC on its REPEP page, linked below.
What TributAI does with the IGIC today
TributAI’s invoicing and bookkeeping cover the IGIC. We don’t prepare Form 420 yet: today you fill it in and file it yourself at the ATC e-office. Income tax we do: we leave Form 130 and Form 111 ready for you to file at the AEAT e-office with your certificate.
Frequently asked questions
Which IGIC rate do I apply to my invoices?+
The IGIC has a general rate, which is the one applied to most professional services, and other rates (reduced, zero and increased) for the goods and services the law lists. Check the current rates with the Canary Islands Tax Agency before invoicing: it publishes them and applies them.
When is Form 420 filed?+
Under the general regime, every quarter, within the period set by the Canary Islands Tax Agency. The dates for each year are in its tax calendar: check the current deadlines there.
Where is Form 420 filed?+
At the e-office of the Canary Islands Tax Agency (ATC), not the AEAT’s. The IGIC is a tax of the Canary Islands and is managed by the ATC.
Do I have to file Form 420 if I invoice very little?+
If you are in the Special Regime for Small Entrepreneurs or Professionals (REPEP), your transactions are exempt from IGIC and you don’t file the quarterly Form 420. To qualify there is an annual limit on the volume of transactions; the current one, and from when it applies to you, is published by the ATC on its REPEP page.
What about income tax in the Canary Islands?+
Income tax is the same as on the mainland: the instalment payment (Form 130), withholdings (Form 111) and the annual return are submitted to the AEAT.
Official sources
- Law 20/1991, tax aspects of the Canary Islands Economic and Tax Regime: the IGIC (BOE, in Spanish)
- Canary Islands Tax Agency: current IGIC rates, calendar and procedures (in Spanish)
- Canary Islands Tax Agency: filing Form 420 (IGIC, general regime) (in Spanish)
- Canary Islands Tax Agency: Special Regime for Small Entrepreneurs or Professionals (REPEP) (in Spanish)
This guide is for guidance only and is not binding tax advice. IGIC rules can change; always check the Canary Islands Tax Agency e-office or a qualified tax adviser for your specific situation. This is an informative translation: the Spanish version prevails.