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.
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