We’re less than two hours away from ringing in 2019 in the Canary Islands but work is far from over. There are some important changes regarding the General I.G.I.C. (Impuesto General Indirecto Canario) Rate, the rate that affects the majority of businesses. Earlier today, the Canarian Government published Ley 7/2018, 28th December, General Canary Islands’ Budget 2019, which states the General I.G.I.C. Rate will be reduced from 7% to 6,5% for all delivery of goods or services that are not subject to other I.G.I.C. Rates from 1st January 2019.
This means that from the 1st January 2019, the I.G.I.C. (value added tax) for any sales or services provided must be calculated at 6,5%. All invoices or estimates provided to customers must factor this change, even if a quote was initially accepted in 2018.
This marks the second change in six years as the General Rate was last modified in July 2012 where it was increased from 5% to 7%.