Canary Islands Government Announces Updates to Electronic Record-Keeping for IGIC

The Canary Islands government announced updates to the technical and administrative requirements for electronic record-keeping of the Impuesto General Indirecto Canario (IGIC), Spain’s regional VAT. These reforms aim to simplify compliance for businesses by clarifying how digital invoices should be recorded and reported through the Canary Islands' tax portal.

Key Changes

• Allows businesses with monthly tax filings to electronically submit detailed invoice data.
• Establishes specific fields for deducing input tax.
• Identifies different invoice types.
• Specifies additional information to report, including:
  • Operations involving property leases
  • High-value cash transactions
  • Goods or services subject to special taxes like tobacco or fuel.

Electronic Submission Requirements

• Firms must have a valid NIF (tax ID).
• Use recognized digital certificates.
• Incorporate systems like Cl@ve PIN for authentication.

Implementation Timeline

Most provisions will come into force on October 1, 2025, aligning regional tax practices with European standards, aiming to:

• Reduce administrative burdens
• Improve transparency.

Significance

This move is significant for expats and local businesses, as it:

• Streamlines digital tax record management.
• Ensures compliance with local laws.
• Minimizes paperwork in a rapidly digitalizing financial environment.