The Canary Islands Budget 2020 is effective from 1 January 2020. Here is a list of changes that took place in the 2020 budget IGIC (Canary Islands General Indirect Tax)

  • The general tax rate has been increased from 6.5 % to 7 %
  • The increased rate has been raised to 13.5 % to 15 %
  • The reduced tax rate of 3 % for telecommunication services is eliminated, these services are being taxed at the general rate tax of 7 %.
  • The tax rate for electricity has been increased from 0 % to 3 % with an exception to the households. The tax rate remains the same for individuals.
  • The tax rate for import of goods related to water remains at 0 % if they are directly allocated by the purchaser or importer to the activities described in the regulations.
  • The tax rate for the execution of work of social housing remains at 0 % and the condition which mentioned that such a house must be the primary place of residency of the purchaser is no longer a requirement for 0% tax rate.
  • The reduced rate of 5 % for the delivery of houses is limited by specifying the conditions and the effects of non-compliance.

Global VAT Compliance specializes in helping international business be VAT compliant around the world offering VAT solutions to your company, so if you can foresee these developments impacting your business, do not hesitate to contact us.