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The regional Decree 111/2018 of 30 July that modifies the Management Ordinance of the Taxes contemplated in the Special Tax Regime of the Canaries has been published at the Official Gazette of the Canaries of 7 August 2018.

The main novelty is the introduction since 1st January 2019 in the General Indirect Tax of the Canaries (IGIC) of the Inmediate Information Supply (“Suministro Inmediato de Información” or “SII”). As happens with the VAT, companies affected will be obliged to file electronically their IGIC registers of issued and received invoices and Register of Investment Goods (the Register of Intracommunity operations does not exist in the IGIC) at the website of the Canary Islands Tax Agency

Obligation

The SII will oblige to those IGIC taxable subjects filing their IGIC returns in a monthly basis, namely:

-             Large companies (V.O. previous year> € 6,010,121.04)

-             Groups of IGIC entities

-             Companies having applied to the special monthly refund regime (REDEME).

IGIC taxable subjects filing their returns in a quarterly basis can voluntarily apply with a quarterly settlement period may opt for the SII through census declaration (model 400). Minimum validity during the year natural for which the option is exercised. As regards 2019 this option can be made in the months of November and December 2018.

Taxable subjects that have no longer a monthly obligation from 01/01/2019, may opt during the month of January 2019.s happens with the VAT,

Dead-lines

For the calculation of deadlines, Saturdays, Sundays and national holidays and holidays of the Autonomous Region of the Canaries will be excluded. Dead-lines are as follows:

-                Invoices issued:

 ·       Billing records must be filed within 4 calendar days from the date of issuance of the invoice.

 ·       Invoices issued by the recipient or by a third party: 8 calendar days.

           ·       In any case, before the 16th of the month following the accrual.

           ·       In the first semester 2019: 8 calendar days.

-          Invoices received:

·       Billing records must be filed within a period of 4 calendar days from the posting of the invoice or of the document that shows the quotas settled for the import.

·       In any case, before the 16th of the month following the deductibility.

·       In the first semester 2019: 8 calendar days.

Technical instructions

In parallel with the legal changes introducing the SII, technical instructions for the generation of the required XML reports have been published at the website of the Canarian Tax Agency. The same would need to be convalidated in due time by the corresponding regional order.