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Canary Islands: IGIC and e-commerce

Selling on Amazon from the Canary Islands: IGIC, Form 420, deadlines

Reviewed on 9 min readConsult GlobalLex team

If your company is based in the Canary Islands, its Amazon sales are subject to IGIC (Impuesto General Indirecto Canario), with a general rate of 7%. They are reported to the Canary Islands Tax Agency (Agencia Tributaria Canaria, ATC) on the quarterly Form 420 (modelo 420) and the annual summary Form 425 (modelo 425), not on the AEAT's Form 303 (modelo 303). Goods leaving the Canaries for mainland Spain or another EU country are treated as exports and imports with a customs declaration (DUA), never as intra-community supplies, and Amazon's fees are self-assessed under the reverse charge.

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The problem

Many Canary Islands sellers follow guides written for mainland Spain and end up filing returns that do not apply to them, or leaving unreported transactions that do. The cause is a single point: the Canaries are excluded from the VAT territory and, for VAT purposes, are treated as a third territory (art. 3.Dos.1.º b) of the VAT Act (LIVA)). IGIC applies instead. It is governed by Law 20/1991 and its consolidated text, and it is managed by the ATC, not by the Spanish Tax Agency (AEAT).

In practice, a sale from the Canaries to a customer on the mainland is an export exempt from IGIC (art. 11 of Law 20/1991). On the mainland it is treated as an import, with a DUA and import VAT. The same applies between the Canaries and another EU Member State. It is not an intra-community transaction: it does not go on Form 349 (modelo 349) or in the intra-community acquisition and supply boxes of Form 303.

Fees and charges that Amazon invoices to a Canary Islands company arrive without tax, and that is not a mistake. The service is located where the business customer is established (art. 17.Uno.1 of Law 20/1991), and your company itself self-assesses the IGIC under the reverse charge (art. 19.1.2.º a) of Law 20/1991). This is done on Form 420.

It also helps to be clear about the 2026 rates. Under the ninth final provision of Canary Islands Law 9/2025, which amends the consolidated text from 1 January 2026, the zero rate is 0%, the specific rate (oil and derivatives) is 1%, the super-reduced rate is 3%, the reduced rate is 5%, the general rate is 7%, the increased rates are 9.5% and 15%, and the special rate (tobacco) is 20%. The old articles of Law 4/2012 that set the rates have been repealed.

Who is affected

  • Companies registered in the Canary Islands that sell on Amazon or other marketplaces, to customers in the islands, on the mainland or in other countries.
  • Foreign entrepreneurs who set up a company in the Canaries to trade from the islands and are unsure which tax applies and which authority they deal with.
  • Mainland sellers who move their activity to the Canaries, or who run one mainland company and one Canary Islands company and carry over VAT habits.
  • Canary Islands companies that receive invoices for Amazon fees or other services from suppliers not established in the Canaries.

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Step by step

  1. Confirm your territory and your tax authority

    If your company is established in the Canaries, its transactions in the islands are subject to IGIC and handled by the ATC. You do not file Form 303 or Form 390 (modelo 390) for them. If you also have a mainland company, that other company follows VAT rules and deals with the AEAT.

    The ROI (Registro de Operadores Intracomunitarios, the intra-community operators register) is an AEAT register for businesses established in the VAT territory, meaning the mainland and the Balearic Islands. It has nothing to do with property or with return on investment, and a Canary Islands company does not need it to report Amazon fees.

  2. Classify your sales by destination

    In your sales report, separate what you deliver and are paid for inside the Canaries, which is subject to IGIC at the rate that applies to the product, from what leaves the islands. Goods sent to the mainland are an export exempt from IGIC and, on arrival, an import with a DUA and import VAT. Goods sent to another Member State follow the same export and import logic.

    The marketplace transaction report is a private file, not an official one, so its columns must be read in the real file. In practice, it is worth reconciling it with your accounts every quarter before preparing Form 420.

  3. Self-assess IGIC on Amazon's fees

    The fee invoice arrives with neither Spanish VAT nor IGIC. Your company, as the business recipient, is the taxable person and must include that IGIC on Form 420 (art. 19.1.2.º a) of Law 20/1991). Form 349 is not filed for these invoices.

    The specific boxes on Form 420 must be checked in the ATC help programme and in the instructions for Form 420, because the current version may have changed. If your company is on the mainland, the treatment is different and is explained in our guide on Amazon seller fees and the reverse charge on Forms 303 and 349.

  4. File Form 420 each quarter and Form 425 in January

    Form 420 is the quarterly IGIC self-assessment under the general regime and must be filed online. Form 425 is the annual summary and is filed during January, together with the last self-assessment. Businesses that keep their books through the ATC's SII system file neither.

    If the last day of the period is a non-working day, the ATC moves it to the next working day. If you pay by direct debit, the deadline is earlier; see the deadlines section for the dates.

  5. Review the obligations around your sales

    Under DAC7 it is the platform that reports, not you: you do not file Form 238 (modelo 238), although you must provide your details for due diligence, and it is wise to reconcile what Amazon reports to the AEAT with your gross sales. A seller with fewer than 30 sales of goods and no more than €2,000 in the period is excluded. More detail is in our guide on DAC7 reporting by Amazon in Spain.

    Veri*factu also applies in the Canaries, and references to VAT are read as references to IGIC, according to the AEAT's FAQs. The timetable is under review: the one currently in force was set by Royal Decree-Law 15/2025, but the tax authorities have announced a postponement to 2028 that is pending official publication. Check the date in force before changing your invoicing software.

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Deadlines

Form 420, third quarter of 2026
Deadline 20 October 2026. With direct debit, until 15 October 2026. · source
Form 420 for the fourth quarter of 2026 and Form 425 for the 2026 year
Deadline 1 February 2027. With direct debit, until 26 January 2027. · source
Form 420 for the other quarters (April, July and October)
From the 1st to the 20th of the month. With direct debit, the first 15 days. If the last day is a non-working day, it moves to the next working day. The fourth quarter is filed during January. · source

Common mistakes

Filing Form 303 or Form 390 for transactions carried out in the Canaries.

Remember that Forms 420 and 425 are IGIC returns filed with the ATC. A Canary Islands company does not file Form 303 or Form 390 for its transactions in the islands.

Treating a shipment to the mainland or to another EU country as an intra-community supply and reporting it on Form 349.

The Canaries are not part of the EU VAT territory. These sales are exports exempt from IGIC and imports with a DUA at destination. They do not go on Form 349.

Assuming that a fee invoice without tax requires no action.

Self-assess the IGIC under the reverse charge on Form 420 every quarter. Leaving it out creates an issue that carries forward, so it is best corrected as soon as possible.

Using IGIC rates from earlier years or the old names for them.

3% is now the super-reduced rate and the reduced rate is 5%. The general rate is 7%. Check the rate for each product in the consolidated text currently in force.

Mixing up the fourth-quarter deadline with the others.

The fourth-quarter Form 420 and Form 425 do not fall due on the 20th: they are filed in January, moved to the next working day where necessary. Always check the ATC calendar for the year.

30-second mini diagnostic

Tick your answers: the list is built in your browser and not stored.

Do you sell to consumers in other EU countries?
Do you hold stock in warehouses outside Spain (e.g. FBA)?
Is your company in the Canary Islands?
Do you import goods from China?
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Indicative result based on general rules; it does not replace advice on your case.

Frequently asked questions

Do I need to register in the ROI to sell on Amazon from the Canary Islands?

Not for Amazon's fees. The ROI is an AEAT register for businesses established in the VAT territory, and the Canaries are outside it. If you later need another registration for a specific transaction, check it case by case.

Do I file Form 349 if I sell from the Canaries to EU customers?

No. Transactions between the Canaries and other Member States are exports and imports with a DUA, never intra-community supplies or acquisitions, so they are not reported on Form 349.

Which boxes on Form 420 do I use for Amazon's fees?

The boxes on Forms 420 and 425 have not been verified for this guide, and they change between versions of the form. Always open them in the ATC help programme and in the current instructions before filling anything in.

Do I have to file the DAC7 Form 238 myself?

No. The platform files it during January of the following year and it is the platform that reports your sales. You only provide your details for due diligence. It is still worth checking that its figures match your accounts.

Does Veri*factu affect me if my company is in the Canary Islands?

Yes, it applies in the Canaries and references to VAT are read as references to IGIC, unless you keep your books through the SII. The adaptation date is pending a postponement announced by the tax authorities, which has not yet been officially published, so confirm it before deciding. If Amazon or another third party invoices on your behalf, it will need to be authorised to submit the records.

Does Amazon deal with the tax on my sales instead of me?

For a Canary Islands company, it has not been verified whether Amazon can be treated as a deemed supplier under article 8 bis of the VAT Act, so do not assume it. Before relying on it, seek the view of the Directorate-General for Taxation or an adviser, because it determines who reports each sale.

Official sources

Consult GlobalLex team

Tax, accounting and legal advisers for Amazon and marketplace sellers, foreign founders and Canary Islands companies in Spain. Registered social collaborator of the Spanish Tax Agency (AEAT) and Social Security (TGSS).

Drafted with AI assistance and checked, fact by fact, against the official sources cited. Reviewed on 11 October 2026.

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