Fiscal subject related
Unlike the three-tier system of VAT, IGIC encompasses six different tax rates: 0%, 3%, 7%, 9.5%, 15%, and 20%. These lower tax rates and broader range of categories make IGIC more favorable for consumers and businesses in the Canary Islands. Each rate is designed to apply to specific goods and services, allowing for more nuanced taxation that benefits various sectors uniquely.
Entities required to declare IGIC include SMEs, self-employed workers, and any businesses involved in operations subject to IGIC in the Canary Islands. These declarations are essential for maintaining compliance with local tax regulations and ensuring accurate tax reporting. Form 420 is used by SMEs and self-employed workers to declare IGIC, while Form 415 is used for informative declarations related to IGIC tax. These forms ensure that all relevant transactions and tax liabilities are accurately reported and managed.
The benefits of IGIC for businesses include lower tax rates, ZEC exemptions, reduced corporate tax rates, and incentives like the Reserva Inversiones de Canarias (RIC) that promote economic growth and development in the Canary Islands. This structure not only supports local businesses but also encourages economic growth and development in the region.
Other news from Spain
New technical document and updates for VeriFactu fiscalization in Spain
![Spain](https://www.fiscal-requirements.com/storage/images/countries/xPJrUQnwV9bNpboKkdiWMnhnSU8eMeXw5g9rOygQ.png)
Although the ministerial order that will officially introduce technical details about new fiscalization in Spain has still not been introduced, the tax administration in Spain has published certain updates for technical documentation available on its special developer portal. More precisely, the AEAT has published a new technical document: VERI*FACTU—Technical specifications for the generati... Read more
![News](https://www.fiscal-requirements.com/storage/images/news/news-placeholder.png)
B2B e-invoicing approved in Spain
![Spain](https://www.fiscal-requirements.com/storage/images/countries/xPJrUQnwV9bNpboKkdiWMnhnSU8eMeXw5g9rOygQ.png)
The Ministry of Economic Affairs and Digital Transformation of Spain has received approval from the European Commission for the new draft of the electronic invoicing regulation, which builds upon the Law on the Creation and Growth of Companies. The Law Crea y Crece introduces the mandatory use of electronic invoicing among entrepreneurs and professionals. When and if the B2B invoicing will become... Read more
![News](https://www.fiscal-requirements.com/storage/images/news/news-placeholder.png)
EU to protect domestic e-commerce sellers with a cross-border tax reform
As online shopping continues to grow, the European Union is planning to implement new regulations to protect local e-commerce sellers. One significant change affects consumers who shop on international platforms like Temu or AliExpress. The EU has already taken some steps at the first sign of growing foreign e-commerce sellers, and since July 1, 2021, all goods entering the EU, regardless of their... Read more
![News](https://www.fiscal-requirements.com/storage/images/news/news-placeholder.png)
EU VAT Validation Tool
One way to validate VAT numbers in the EU is the VAT Information Exchange System (VIES), which is a crucial tool for businesses operating within the European Union. Owned by the European Commission, VIES is a search engine that retrieves data from national VAT databases to verify VAT numbers. Here’s a detailed look at how VIES works and its significance. How VIES Works When a search is made usi... Read more
![News](https://www.fiscal-requirements.com/storage/images/news/news-placeholder.png)
New updates regarding Spain VERI*FACTU system
![Spain](https://www.fiscal-requirements.com/storage/images/countries/xPJrUQnwV9bNpboKkdiWMnhnSU8eMeXw5g9rOygQ.png)
The Spanish Tax Authority (AEAT) has recently submitted a draft Ministerial Order to the EU Commission, detailing the technical, functional, and content specifications for computerized billing systems (SIFs) known as Verifactu. This move is part of the implementation of Royal Decree 1007/2023, which introduces fiscalization in Spain and requires taxpayers to adapt their SIFs by July 1, 2025. The E... Read more
![News](https://www.fiscal-requirements.com/storage/images/news/news-placeholder.png)
The current status of VeriFactu deadlines in Spain
![Spain](https://www.fiscal-requirements.com/storage/images/countries/xPJrUQnwV9bNpboKkdiWMnhnSU8eMeXw5g9rOygQ.png)
Although fiscalization, known under the name Verifactu, was announced a couple of years ago, we are still waiting for more official regulations and confirmation, especially from a technical perspective. If we consider the main fiscalization regulation, Royal Decree 1007/2023 of December 5, which approves the Regulation that establishes the requirements to be adopted by computer or electronic syste... Read more
![News](https://www.fiscal-requirements.com/storage/images/news/news-placeholder.png)