Navigating IGIC in the Canary Islands

Navigating VAT in Canary Island

This guide provides an overview of IGIC in the Canary Islands, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within the Canary Islands.

Last Updated: January 2026

7%

IGIC is used in the Canary Islands instead of EU VAT, giving them a competitive edge for tourism and shopping.

Canary Islands at a glance.

Canary Islands
at a glance.

Standard rate

7% IGIC

Digital services IGIC

N/A

Mandate e-invoicing

N/A

Currency

Euro (EUR)

Zero-rated items

N/A

IGIC format

9 Alphanumeric digits

Fiscal representation

N/A

Reclaiming IGIC in the Canary Islands.

Foreign businesses that incur IGIC on eligible expenses in the Canary Islands may be able to reclaim it.

Who can reclaim?

Claimable expenses:

Entertainment Non-reclaimable

Accommodation 7%

Food, drink & restaurant services 3/7/15%

Hiring means of transport 7/15%

Fuel 7%

Public Transport 7%

Taxis 7%

Admission to fairs & exhibitions 7%

Training courses & seminars 7%

Goods 7%

Inter-company charges 7%

Office expenses 7%

Marketing costs 7%

Professional fees & AP invoices 7%

Entertainment

Non-reclaimable

Accommodation

Food, drink & restaurant services

3/7/15%

Hiring means of transport

7/15%

Fuel

Public Transport

Taxis

Admission to fairs & exhibitions

Training courses & seminars

Goods

Inter-company charges

Office expenses

Marketing costs

Professional fees & AP invoices

FAQs

Which businesses can apply for IGIC refunds in the Canary Islands?

Generally, a business will be entitled to claim a IGIC refund in the Canary Islands if it is not registered for IGIC in the Canary Islands (and thus does not have a Canary Islands IGIC number) and does not make taxable supplies that would be subject to IGIC in the Canary Islands. The business would also need to be established in a country that has established reciprocity with the Canary Islands in relation to VAT/IGIC refunds.

Are there special considerations for IGIC refunds in the Canary Islands?

Although the Canary Islands are part of the EU, being an autonomous region of Spain, it does not form part of the EU territory for VAT purposes. Even though the Canary Islands are therefore not bound by the EU VAT Directives, they do operate refund mechanisms similar to the EU 8th and 13th Directives.

How are IGIC refund applications submitted in the Canary Islands?

IGIC refund applications in the Canary Islands similar to both the EU 8th and 13th Directives are submitted through an online portal managed by the Canary Islands tax office.

Nearby countries.

Explore indirect tax information in these countries:

Spain

Portugal

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