VAT Refund for Residents in the Canary Islands
VAT Refund for Residents
VAT refund for Fuerteventura residents is a beneficial process but one that requires attention to detail. By following the steps described and respecting the deadlines, you can recover VAT on purchases made in the Peninsula or the Balearic Islands, by paying the IGIC in the Canary Islands. This system reflects the tax uniqueness of the Canary Islands and offers a way to save money, especially for significant purchases. Be sure to plan carefully, and if you have any concerns, consult a tax expert for specific assistance.
VAT Refund Guide
How It Works and What to Know
If you are a resident of Fuerteventura or another Canary Island, you may have heard of the possibility of getting VAT refunded on purchases made in mainland Spain or the Balearic Islands. This advantage stems from the fact that the Canary Islands enjoy a special tax regime and do not apply VAT (Impuesto sobre el Valor Añadido), but the IGIC (Impuesto General Indirecto Canario), which generally has lower rates. Let’s see how this process works, with a focus on the peculiarities that affect the residents of Fuerteventura.
Why Can Canary Island Residents Get a VAT Refund?
The Canary Islands, including Fuerteventura, are part of the customs territory of the European Union, but are considered a special tax area. This means that:
Purchases made in the Peninsula or the Balearic Islands include VAT, which is a tax that is not applicable in the Canary Islands.
To comply with tax regulations, residents of the Canary Islands can apply for a VAT refund on purchases they intend to bring to the islands.
Who Can Request a Refund?
The following can access the VAT refund:
Official residents of the Canary Islands with valid ID.
Those who buy goods for personal use and who physically export them to the Canary Islands.
Not included:
Services, such as hotel stays or car rentals.
Goods that are used or consumed in the Peninsula or the Balearic Islands before being taken to the Canary Islands.
Steps to Get a VAT Refund
1. Request the Invoice with DER or DIVA
When you make a purchase in the Peninsula or the Balearic Islands:
Ask the retailer for an invoice with the Electronic Refund Document (DER) or the DIVA system.
Make sure that the invoice includes your personal details, the items purchased and the amount paid.
Not all stores offer this service, so check in advance if the store supports the VAT refund system.
2. Export Goods Within Three Months
To obtain a refund, the goods must leave the VAT territory within 90 days from the date of purchase. This is a crucial step to prevent the request from being rejected.
3. Customs Validation in Fuerteventura
Upon arrival in Fuerteventura, go to the customs of the airport or port with:
Proof of identity.
Original invoice with the DER or DIVA.
The goods purchased.
A customs officer will validate the invoice, certifying that the goods have been exported from the Peninsula or the Balearic Islands.
4. Submit the 040 Model
Once the invoice has been validated:
Fill out Form 040 through the Canary Islands Revenue Agency portal.
Attach the validated invoice and your ID.
This step is used to declare the imported goods and start the calculation of the IGIC.
5. Pay the IGIC
After submitting the Form 040, you will receive the Form 032 with the amount of the IGIC to be paid. This amount is based on the value of the assets declared and the applicable IGIC rate (generally between 3% and 7%).
You can make the payment directly online through the vexcan.es website.
6. Send the Documentation to the Seller
The last step is to send the invoice validated by customs back to the seller, using any pre-paid envelope provided by the store. Once received and verified, the seller or the management system (e.g. Global Blue) will process the refund.
Peculiarities of Fuerteventura compared to Other Islands
Fuerteventura, while sharing the tax regime of the Canary Islands, has some unique characteristics:
Less customs traffic: Fuerteventura’s airports and ports handle a lower volume of passengers than Tenerife or Gran Canaria, which can make the customs validation process faster and less congested.
Focus on international tourism: Shops on the Peninsula that partner with tourists often support the DIVA refund system, simplifying operations for Fuerteventura residents.
Export by sea: For those importing bulky goods, sea freight offers a viable alternative, although customs validation times may be slightly longer.
Mistakes to Avoid
Do not request the DER/DIVA invoice at the time of purchase.
Forget to validate the invoice at customs.
Exceed 90 days from purchase without exporting the goods.
Not pay the IGIC within the deadlines indicated in Form 032.
