Canary Islands. Postponement of IGIC and duties on imports

Unlike to the "no action policy" of the Spanish central government, as regards VAT obligations under the covid-19 crisis, when speaking of the regional indirect tax of the Canary Islands (the so called IGIC), the autonomous government are adopting specific measures affecting the managing of such indirect tax.

We already commented the extension of deadlines for IGIC returns, form 420, for the  1st quarter 2020 that are to be filed until June 1, 2020 (the original deadline being April 20, 2020. However, such rule does not apply to big companies that are obliged to file IGIC monthly returns (in principle, those with a turnover exceeding 6 million Euros).

The autonomous government has now extended 30 calendar days the payment of the import debts, including IGIC, that are due in the month of April 2020, to companies benefiting from the deferred payment procedure (i.e. those companies that have guaranteed the payment of such debts). Since the normal payment period is 60 calendar days, so now the payment period will be 90 days. Such extension is granted without the obligation to pay any interests.

For example, if the dispatch of the import of goods is dated in February 15^th, 2020, a company subject to the deferred payment procedure would normally have to pay the import debts in April 15^th, 2020 (60 calendar days), now the payment will be made in May 15^th, 2020.