Canary Islands – Tax Increases announced
The Canarian government has announced that there will be IGIC (VAT) increases implemented from the 1st July 2012. The rate changes are as follows.
Zero rated - Items which are currently zero rated, generally those deemed “essentials”, will remain the same. However, IGIC discounts which previously were available for fixed and mobile telephone lines will now be charged at the general rate of 5%.
Lower rates - The 2% rate will rise to 3%
General rates - The changes will see the general 5% rate increased to 7%. Hotel stays, tourist accommodation, leisure and catering, housing or professional services all fall into this category.
Higher rates - The 9% and 13% rates jump to 9.5% and 13.5%.
Should you wish to discuss this or if you would like further information please contact us by: