CANARY GENERAL INDIRECT TAX AT 7%.

From 1st January 2020, the Canary Islands General Indirect Tax (I.G.I.C.) will return to 7%, after having been at 6.5% during 2019. In principle, this will not affect you if your company is established on the peninsula or the Balearic Islands and sells goods or provides services to businessmen in the Canary Islands, as you will not have to charge I.G.I.C. or VAT.

However, if you provide services to private individuals, in some cases they may be understood to be carried out in the Canary Islands, in which case you must charge the new I.G.I.C. at 7%.