The Autonomous Community of the Canary Islands enjoys a special economic-fiscal system consistent with its historical and constitutionally recognised heritage, based on free import and export trade, the non-application of monopolies and on exemptions of customs and tax duties. The content of this system includes the applicable principles and rules resulting from the recognition of the Canary Islands as an ultra-peripheral region of the European Union (Article 299.2 of the Treaty of the European Community).
In the territory of the Autonomous Community of the Canary Islands, within the scope of indirect taxation, the following are not applied: the Value Added Tax, the Tax on Retail Sales of Certain Hydrocarbons and some Special Taxes (specifically, the Special Tax on Hydrocarbons and the Special Tax on Tobacco Products). Within the scope of indirect taxation, on the Canary Islands the General Canary Islands Indirect Tax and the Excise Tax on Imports and Deliveries of Goods in the Canary Islands are applied.
Regulatory legislation of the Economic and Fiscal System of the Canary Islands