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V0054-16 8 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · ámbito espacial

Deliveries of goods in the Canary Islands are not subject to VAT as they are located outside the scope of the tax

A company importing steel into the Canary Islands for processing and resale within the islands has requested clarification on the applicable IGIC rate. The Directorate General for Taxes (DGT) ruled that the transaction does not constitute a taxable event for VAT and stated it lacks jurisdiction to rule on IGIC matters.

The question raised

The question concerns the IGIC tax rate applicable to the supply of goods carried out following their importation.

The DGT's ruling

The described operation does not constitute a taxable event for VAT because the supply of goods is not located within the territory to which the tax applies, as the Canary Islands are excluded from it. Furthermore, the DGT states that it is not competent to resolve queries relating to the General Indirect Canarian Tax (IGIC).

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