The decision, driven by Minister Matilde Asián, aims to equalize fiscal conditions between physical and electronic commerce in the islands. The exemption, which facilitated the growth of e-commerce, is now considered unsustainable, especially after the implementation of the European three-euro tariff for purchases from third countries.
According to Asián, abolishing this tax franchise, which was already removed from the mainland in 2021 due to fraud and competition distortion, is necessary to restore equality. However, user representatives like Víctor López question whether the tariff is the primary reason, as platforms often cover this cost, sparing consumers from additional paperwork and ensuring package acceptance.
Local businesses have long complained about unfair competition, as consumers buying from physical stores in the Canary Islands do pay IGIC, while online purchases remained exempt. The formal request has been sent to the Ministry of Finance for the modification of the REF law (20/1991).
The legislative process will not be immediate, and the modification is expected to come into effect within months. In the meantime, Canary Islands consumers can continue making online purchases without paying IGIC on orders under 150 euros. It remains to be determined how the tax will be settled once the exemption is removed.
The Canary Islands Government unsuccessfully attempted to have the sales platforms themselves handle IGIC settlement to provide buyers with a clearer final price. The platforms, citing the small size of the Canary market, rejected this proposal.
Asián advises verifying the country of origin for shipments when purchasing from platforms outside the European Union, as goods sent from countries like China but transiting through France might not be subject to the three-euro tariff. The minister noted that the AEAT will manage the tariff's implementation, and subsequent steps for the Canary Islands will be studied.
