Special Regime for Small Businesses or Professionals

The Canarian Official Bulletin last Saturday published the Law of General Budgets of the Canarian Autonomous Community for 2018, among whose provisions is the introduction in the regulations governing the IGIC of the “Special regime for small businesses or professionals”, whose main characteristics are:

– Sales or services performed by individuals with businesses or professional activities in the Canary Islands, whose volume does not exceed € 30,000 per year, are exempt from IGIC.

– The scheme is voluntary, and those who want to be included, have until April 2, 2018 to submit the registration (model 400).

– The invoices that they issue must necessarily carry the phrase “ exención franquicia fiscal”, and, of course, not carry IGIC.

– The registration books of the IGIC are still obligatory and they should continue presenting the informative declarations (models 415 and 425).

A key point is that rentals are also services.  This means that landlords can benefit from this scheme if during the previous year they have received less than € 30,000 for all their rents and other business activities they may have.

The introduction of this new scheme is of interest for landlords and low-billing professionals.  It will mean they no longer have to present quarterly tax returns for IGIC.  We will be contacting you once we have finished preparing your fourth quarter tax return.  However, if you are certain that your turnover is lower than the 30.000 euros from Jan to Dec 2017, you must contact us before you raise your next invoice.

Information by E.B.F Consulting S.L.  E.B.F Consulting has been providing tax and accounting services to expatriates in Europe since 1999. Office is based in Lanzarote, Spain.  Visit www.ebfconsulting.com for more details. Copyright © E.B.F Consulting 2018

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