What Does Igic Mean in Spanish? | Canary Islands Tax Basics

IGIC is the Canary Islands’ indirect sales tax, charged on many goods, services, and imports within the islands.

If you’ve seen “IGIC” on a receipt from Tenerife, Gran Canaria, Lanzarote, or another Canary Island, you’re seeing a local tax label, not a slang word. People often ask what it “means in Spanish” because it shows up like a term you should translate. In practice, it’s an acronym tied to the Canary Islands’ tax system.

This article clears up what IGIC stands for, why the islands use it instead of mainland Spain’s VAT (IVA), where you’ll see it, and how rates work in real purchases. If you’re a traveler, you’ll learn how to read bills and invoices. If you sell into the islands, you’ll get a clean map of what triggers IGIC and what tends to change the rate applied.

What IGIC Stands For In Spanish

“IGIC” stands for Impuesto General Indirecto Canario. In plain terms, it’s a general indirect tax used in the Canary Islands. You’ll often see it written as “IGIC” on invoices, checkout pages, receipts, and customs paperwork tied to shipments entering the islands.

Two small language notes help the term click:

• Impuesto means “tax.”
• General indirecto signals an indirect tax, collected through transactions rather than paid as a direct charge on income.
• Canario ties it to the Canary Islands.

So if you were trying to translate it like a single Spanish word, you’d be stuck. It’s a label that acts like a category name. People say “pagar IGIC” (pay IGIC) or “con IGIC incluido” (IGIC included) the same way they say “con IVA incluido” on the mainland.

Why The Canary Islands Use IGIC Instead Of IVA

Mainland Spain and the Balearic Islands run on VAT (IVA). The Canary Islands sit outside the VAT territory used for EU VAT rules, which is why the islands apply IGIC in place of IVA. The European Commission’s overview of VAT territorial scope lays out which territories fall inside or outside EU VAT rules, including special territories tied to EU Member States. European Commission VAT territorial scope is a solid reference point for this boundary.

Spain’s own tax agency states that Spanish VAT applies in the Peninsula and the Balearic Islands, excluding the Canary Islands (plus Ceuta and Melilla). That distinction matters when you’re reading rules for online orders, imports, and invoice formats. You can see that statement in the Agencia Tributaria’s guidance on VAT territory: Tax Agency VAT territory where the tax applies.

Inside the islands, the local administration explains IGIC as an indirect tax that applies to deliveries of goods and services carried out in the Canary Islands by businesses and professionals, plus certain imports. The Canary Islands tax authority’s IGIC page is the most direct official explainer: Agencia Tributaria Canaria IGIC overview.

Where You’ll See IGIC In Real Life

Most people meet IGIC in one of these moments:

• Restaurant and café bills that show a subtotal and an IGIC line, then a total.
• Hotel invoices with IGIC shown per night or for the full stay.
• Car rentals, tours, and tickets where the tax is included in the final price or shown separately.
• Online orders shipped to the Canary Islands where the seller removes mainland IVA and the shipment is processed under Canary import rules.
• Business invoices where IGIC is listed with the applied rate and the taxable base (base imponible).

If you’re used to receipts that only show a final amount, seeing IGIC listed can feel new. In Spanish paperwork, it’s normal for invoices to show the tax base, the rate, and the tax amount. That layout helps businesses track input tax and output tax across periods.

IGIC Rates And What Changes The Percentage

IGIC uses multiple rates. The general rate is commonly cited as 7%, with other reduced or increased rates used for specific categories. Rates can shift based on what’s sold (goods vs. services), how it’s classified, and where the transaction is treated as taking place under local rules.

When you’re just trying to read a receipt, here’s a practical way to think about it:

• Daily purchases often fall under the general rate.
• Some essentials can fall under a zero rate or reduced rate.
• Some luxury or special categories can face higher rates.
• Imports can bring extra paperwork and taxes beyond what you see on a shop receipt.

For the legal backbone, IGIC is set within the Canary Islands’ fiscal regime in Spanish law, including the consolidated text of Ley 20/1991 (BOE), which frames the tax structure for the islands’ regime.

How IGIC Compares With Mainland VAT On Receipts

People often say “IGIC is the islands’ VAT.” That’s a handy shortcut, yet it helps to be precise: it’s a consumption tax charged through transactions, and it serves a similar role in pricing and invoicing, but it sits in a different territorial and legal setup than mainland VAT.

If you’re shopping, the headline takeaway is simple: you’ll see IGIC instead of IVA in the Canaries. If you’re ordering online, you may see IVA removed at checkout, then IGIC handled on arrival or via the seller’s setup, depending on the transaction and the merchant’s model.

Below is a practical comparison table that keeps the ideas straight without turning this into a legal manual.

Topic	IGIC (Canary Islands)	IVA/VAT (Mainland Spain)
Where It Applies	Transactions located in the Canary Islands	Peninsula and Balearic Islands
Tax Label On Receipts	IGIC	IVA
Common General Rate	Often shown as 7%	Often shown as 21%
Reduced / Special Rates	Multiple reduced and increased bands used by category	Reduced bands used by category
Online Orders To The Territory	May remove IVA at checkout; local treatment can apply on import	Normal VAT rules within VAT territory
Invoice Structure	Usually shows base + rate + IGIC amount	Usually shows base + rate + IVA amount
Rule References	Canary tax authority guidance and BOE legal framework	Tax Agency guidance and VAT framework
Typical Reader Confusion	Looks like a Spanish word to translate	Recognized as VAT by many shoppers

What “IGIC Included” Means When You See It Online

On Canary Islands sites, you might see “IGIC incluido” or “precio con IGIC.” That means the displayed price already contains the tax. On some mainland or international shops, you might see a different pattern when the shipping address is in the islands:

• The shop shows a price with IVA by default.
• At checkout, once you pick a Canary Islands address, the shop removes IVA.
• Then, one of two things happens: the seller collects IGIC through its own system, or the package is processed as an import and charges are handled at entry.

This is where many shoppers feel blindsided. They see the price drop when IVA is removed, then they get an email or carrier notice asking for taxes and fees before delivery. The clean way to avoid surprise is to look for checkout text that spells out tax handling for Canary Islands deliveries.

IGIC On Imports: Why Parcels Can Trigger Extra Charges

Shipping into the islands can be treated differently than shipping within mainland Spain. The core reason is the territorial scope difference. When a package enters, local import processes can apply, and the final amount can include taxes and handling fees set by the carrier or agent processing the entry.

Three practical checkpoints help:

• Invoice value: declared value influences what gets charged at entry.
• Seller’s tax handling: some sellers manage tax collection and paperwork in a way that reduces friction at delivery.
• Product category: some items fall under different tax treatment or additional local charges.

If you run a small shop and ship to the Canaries, your cleanest move is to learn how your carrier handles Canary entries and what documentation it expects. The Canary Islands tax authority’s IGIC overview is a strong starting point for the official framing of what IGIC applies to. Agencia Tributaria Canaria IGIC overview is written for real-world operations, not tourists, yet the definitions help both groups.

Common Rate Labels You Might Spot On Invoices

Invoices can show rate names in Spanish. You might see “tipo general” (general rate) or “tipo reducido” (reduced rate). You can also see “tipo cero” (zero rate) for certain categories. The exact category mapping is technical, yet the invoice labels are easy to read once you know the vocabulary.

When you’re checking a bill, focus on these fields:

• Base imponible: the taxable base before IGIC.
• Tipo: the rate percentage.
• Cuota: the tax amount charged.
• Total: final amount paid.

In tourism-heavy areas, prices on menus and shelf tags are often shown as final prices, with IGIC already folded in. Printed invoices still tend to show it as a line item.

When IGIC Matters For Businesses And Freelancers In The Islands

If you operate a business in the Canary Islands, IGIC moves from “line on a receipt” to “part of your routine.” Businesses charge IGIC on taxable sales (output tax) and can often account for IGIC paid on business purchases (input tax) under the rules that apply to their regime and activity.

Filing forms and schedules depend on the taxpayer’s setup. The Canary Islands tax authority provides official pages for returns like Modelo 420, which is used for IGIC self-assessment filings in many cases. The official reference page is here: Agencia Tributaria Canaria Modelo 420.

If you only came here to translate the term, you can stop at the acronym and feel good. If you’re invoicing clients, the acronym is just the start. Classification, place of supply, and documentation drive what goes on the invoice.

Quick Scenarios: What You’re Likely To See Charged

Rates vary by category, and your receipt won’t always spell out the reason. The table below keeps things practical by showing where IGIC tends to show up and what to look for on paperwork. Treat it as a reading aid for receipts and invoices, not a substitute for category-by-category classification.

Scenario	Where IGIC Shows Up	What To Check
Restaurant bill in Las Palmas	Line item on invoice or folded into menu price	Rate shown near the taxable base
Hotel invoice in Tenerife	Per-night line or total stay line	Whether the invoice lists base + tax
Car rental contract	Often included in the total price	Fine print for taxes and fees
Online order shipped from mainland Spain	IVA removed at checkout; IGIC handled via import process or seller setup	Checkout notes on Canary delivery taxes
Electronics bought in-store	Receipt shows IGIC, sometimes as a single tax line	Tax rate on the receipt
Business invoice for services	Invoice shows base, rate, and IGIC amount	Client details and tax fields filled correctly
Parcel held by carrier on arrival	Carrier asks for taxes and processing fees	Declared value and paperwork included

Plain Spanish Phrases That Pair With IGIC

If your goal is language comprehension, these phrases come up a lot in shops and invoices:

• Con IGIC incluido: with IGIC included.
• Sin IGIC: without IGIC (often a base price before tax).
• Desglose de IGIC: IGIC breakdown (the split between base and tax).
• Tipo de IGIC: IGIC rate.
• IGIC soportado: IGIC paid on purchases (accounting context).
• IGIC repercutido: IGIC charged on sales (accounting context).

Those last two are accounting terms you’ll see in bookkeeping talk. Shoppers usually only see “incluido,” “tipo,” and the tax line on the invoice.

Common Misreads And Fast Fixes

People misread “IGIC” in a few predictable ways:

• Thinking it’s a Spanish adjective: It’s an acronym, so treat it like “VAT.”
• Assuming it’s a fee from a single shop: It’s a tax category used across the islands, not a store policy.
• Mixing it up with IVA: If you’re in the Canary Islands, you’ll see IGIC on local receipts; IVA is tied to mainland VAT territory rules.
• Expecting one rate for everything: Multiple rates exist, so two receipts can show different percentages.

If you’re translating a receipt, the clean approach is: translate the goods and services line items as usual, then treat “IGIC” as “Canary Islands indirect tax (IGIC)” in your notes.

A Simple Way To Explain IGIC To Someone Else

If a friend asks what it means, this wording works well:

• “IGIC is the Canary Islands’ sales tax. It’s listed on receipts like VAT, and the letters stand for Impuesto General Indirecto Canario.”

That one sentence answers the translation angle and the practical angle. It stops confusion fast, and it fits what official sources describe: an indirect tax applied in the islands’ territory on goods and services, plus imports under the rules that apply. The Canary tax authority’s IGIC page is a direct official reference for that definition: Agencia Tributaria Canaria IGIC overview.