{"id":12215,"date":"2022-12-14T20:49:33","date_gmt":"2022-12-14T19:49:33","guid":{"rendered":"https:\/\/entretramites.com\/en\/?p=12215"},"modified":"2023-09-08T17:12:36","modified_gmt":"2023-09-08T15:12:36","slug":"register-in-igic-canary-islands","status":"publish","type":"post","link":"https:\/\/entretramites.com\/en\/income-tax\/register-in-igic-canary-islands","title":{"rendered":"How to apply for the IGIC of the Canary Islands?"},"content":{"rendered":"\n

The Spanish Congress approved the application of a special registration<\/strong> for the territory of the Canary Islands<\/strong>, where the Canary Islands General Indirect Tax (IGIC)<\/strong><\/a> will be applied with a tax rate much lower than that applied in the common territory of Spain<\/strong> known as IVA<\/strong> (Impuesto al Valor A\u00f1adido).<\/p>\n\n\n\n

That is why all people who live in this territory and want to carry out professional or business activities must register in this special scheme,<\/strong> in order to sell to their clients and buy from their suppliers or creditors with the Canary Islands General Indirect Tax (IGIC). <\/p>\n\n\n\n

This special scheme is known as Form 400<\/strong>. It corresponds to the census declaration of entrepreneurs or professionals<\/strong>, which allows charging and paying with the IGIC as long as the fiscal address is in the Canary Islands<\/strong>. It can be said that it is a way of keeping track or registering the collection of this tax.<\/p>\n\n\n\n

Do you want to know how to sign up? <\/strong>In this blog, we’ll tell you so keep reading! And if you have any questions, you can contact Entre Tr\u00e1mites and we will solve them for you. You can also have a free consultation!<\/a><\/strong><\/p>\n\n\n\n

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AEAT Canary Islands<\/figcaption><\/figure>\n\n\n\n

Who must present Form 400?<\/strong><\/h2>\n\n\n\n

Those who want to set up their business in the Canary Islands<\/strong> will be obliged to present this form. However, there are activities that are not required<\/strong> to present it, such as activities related to education, health, and retail trade<\/strong> that are registered under the small professionals’<\/strong> scheme.<\/p>\n\n\n\n

Many make the mistake of believing that in the Canary Islands the registration <\/strong>is not made using Form 036 <\/strong>since Form 400 replaces it. Well, it is NOT like that,<\/strong> you must register in both forms and in Social Security<\/strong>.<\/p>\n\n\n\n

So, what is the order<\/strong> that I must follow to register as a self-employed<\/strong> worker and pay taxes in the Canary Islands properly? The order to follow is this:<\/p>\n\n\n\n

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  1. Register with the Tax Agency<\/strong> by presenting Form 036<\/strong><\/a> or 037.<\/li>\n\n\n\n
  2. Register with Social Security in the<\/strong> corresponding scheme (when filling in Form 036 or 037 this can be requested).<\/li>\n\n\n\n
  3. Register with the Canary Islands Tax Agency<\/a><\/strong> through the presentation of Form 400<\/strong>.<\/li>\n<\/ol>\n\n\n\n

    <\/p>\n\n\n\n

    Should I fill out Form 036 of the Spanish Hacienda?<\/strong><\/h2>\n\n\n\n

    Yes<\/strong>, it is a mandatory requirement<\/strong> to submit Form 036<\/strong>, since first, you request your registration as a self-employed person or company, and then you request to be able to pay the IGIC as self-employed or company<\/strong> in the Canary Islands through the application of Form 400<\/strong>. This is presented prior to the start of the activity<\/strong> that you intend to carry out, as well as if one day you decide not to pay more taxes.<\/p>\n\n\n\n

    In other words, deregistering <\/strong>as a self-employed worker or company will have a period of one month<\/strong> from the day the decision is made. A piece of information to take into account when filling out Form 400<\/strong>: it is not difficult to fill it in, but it does require doing it with great care with respect to the information<\/strong> that is written. What kind of information goes into this form? Keep reading!<\/strong><\/p>\n\n\n\n

    How is Form 400 filled?<\/strong><\/h2>\n\n\n\n

    The form consists of 5 sheets<\/strong> to fill out carefully, these are:<\/p>\n\n\n\n

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    IGIC Table<\/em><\/figcaption><\/figure>\n\n\n\n

    Additionally, there are 3 ways to present Form 400<\/strong>:<\/p>\n\n\n\n