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V0381-14 14 February 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · tiendas libres de impuestos

Duty-free shops in the Canary Islands may sell alcohol tax-free if the destination is a third country or territory

A Canarian company intends to open duty-free shops in ports to sell alcoholic beverages to cruise passengers. The DGT clarifies that the tax exemption depends on the traveller's destination rather than their nationality.

The question raised

Taxation of the operations that may be carried out in said establishments based on the traveler's destination and nationality.

The DGT's ruling

To apply the exemption in duty-free shops in the Canary Islands, the traveler must travel in their personal luggage to a third country or third territory other than the Canary Islands. The destination must appear on the transport document and the sale must be recorded with the voyage number and port of destination. If the destination is peninsular territory, the Balearic Islands, an EU country, or the Canary Islands themselves, the corresponding tax rates must be applied. Establishments must be registered as fiscal warehouses with customs warehouse or duty-free status.

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