Canary Islands territory – IGIC

Even part of the customs European Community territory, the Canary Islands is not part of the VAT European territory, this meaning that for any transaction which is deemed to be placed within the Canary Islands it would apply an indirect tax regime other than the VAT regime.  More specifically, the indirect tax legislation covering the Canary Islands territory comes through the Economic and Tax Regime of Canary Islands Law, regulating the Canary General Indirect Tax – IGIC.

Despite some similarities with the Spanish VAT Law, the IGIC regulation has its own particularities entailing several implications for the transactions deemed to be placed within the IGIC territory, such as the general IGIC rate, currently established at 7%

In this regard, implications related to the recovery of the input IGIC quotes, registration for IGIC purposes, importation of records in the Canary Islands territory or even the exemptions in the IGIC application are some of the relevant particularities of this territory that would need a specific tax analysis in terms of indirect tax.

Diligens is expert about all the IGIC implications derived from the transactions placed in the Canary Islands territory, thus assisting its clients in the proper planning for IGIC purposes, implementing the most appropriate solutions for the transactions in such territory and accompanying the client with the ongoing IGIC compliance before the Canary Tax Authorities, always with the excellence and confidence demanded by our clients.

Should you need additional information about the IGIC and the implications for your transactions involving the Canary Islands territory, please feel free to send an e-mail to

We will contact you without any obligation from your side.