Understanding IGIC: The Canary Islands’ Unique Indirect Tax System Explained

• IGIC (Impuesto General Indirecto Canario) is the Canary Islands’ version of Spain’s VAT
• IGIC offers lower tax rates and unique benefits compared to VAT in mainland Spain
• IGIC is a local consumer tax designed to maintain economic differentiation in the Canary Islands
• Key differences between IGIC and VAT include lower tax rates and a wider variety of tax rates
• IGIC tax rates range from 0% to 20% and are tailored to different products and services
• IGIC incentivizes local consumption and supports businesses in the Canary Islands

Source: taxually.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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