The additional provision of Law 20/1991, of 7 June, of Amendment of the Fiscal Aspects of the Fiscal Economic Regime of the Canary Islands, authorizes the Government, prior to the report of the Autonomous Community of the Canary Islands, to dictate the provisions necessary for the development and implementation of that Law.

Following the approval of the Regulation, by means of Royal Decree 2538/1994 of 29 December, for which detailed rules of development relating to the Indirect General Tax Canarian and the Arbitration for Production and Import in the The Canary Islands, have been incorporated into the Law regulating this Tax a series of modifications through the successive Laws of Fiscal, Administrative and Social Order.

In effect, Law 13/1996 of 30 December; Law 66/1997 of 30 December; Law 50/1998 of 30 December; Law 55/1999 of 29 December, and Law 14/2000 of 29 December, have incorporated a number of changes in the the Law to amend the tax aspects of the Fiscal Economic Regime of the Canary Islands, which require the corresponding adaptation or development of their regulatory provisions.

Thus, the incorporation into Law 20/1991 of 7 June, of modification of the fiscal aspects of the Fiscal Economic Regime of the Canary Islands, of the special regime of operations with investment gold, determines the need to dictate regulatory standards to supplement the legal provisions in this field. In particular, the weight tolerances to be accepted on the bullion markets should be established for the purposes of delimiting the concept of investment gold and also the requirements for the exercise of the waiver of the exemption provided for in that special arrangements. In addition, in relation to the alleged investment of the taxable person referred to in Article 19 (1) of the Tax Act, it is necessary to define the concepts of unworked gold and semi-finished gold products, in order to Of course, the majority of the gold deliveries which exceed a certain degree of purity and thus achieve the greatest efficiency in the application of the reverse charge mechanism are understood.

In addition, and in order to avoid the production of unjustified financial costs for entrepreneurs who market gold without making or semi-finished gold products, it is appropriate to include such transactions between those included in the 83 of the Tax Regulation, so that the monthly refund of the quotas can be accepted.

In Article 90 of this Royal Decree, the regime of operations with investment gold is included in the special tax regimes.

In Article 11 of the Royal Decree the terms and conditions in which the taxable persons carrying out transactions relating to the recovery materials can apply to the Government of the Canary Islands for the authorization of the apply the exemption provided for in Article 10.1.30) of Law 20/1991.

It is also appropriate to specify, in Article 97 of the Regulation, the scope of the amendment introduced in Article 51 of Law 20/1991 of 7 June on the determination of the volume of transactions in partial transmissions of the business or professional heritage.

It is also appropriate to introduce certain clarifications and clarifications in Article 95 of the Tax Regulation, which regulates the way to settle the tax for taxable persons covered by the simplified special scheme. In particular, it is appropriate to clarify the treatment to be given to capital grants received for the purchase of certain goods and services, in such a way as to standardise the criteria for interpretation of the rules applicable to operations carried out under the scheme.

Similarly, in relation to that special scheme, it is also important to specify that the collection of subsidies for the supply of Community products or available on the EC market, provided for in the Specific options for the remoteness and insularity of the Canary Islands, as well as those received by the special centres of employment, do not determine any limitation in the right to deduct which corresponds to the employer who receives them.

Also, Law 14/2000 of 29 December, of Fiscal, Administrative and Social Order Measures, has introduced amendments to Articles 5, 28, 43 and 43 bis of Law 20/1991 of 7 June, making it necessary to give new wording to Articles 4, 59, 76, 77, 78 and 79 of its Rules of Procedure for the development of certain rules relating to the deduction of the quotas which are borne or satisfied prior to the start of the supply of goods or services provided for business or professional activities.

Furthermore, other amendments are introduced to the Indirect Canarian General Tax Regulation in order to simplify it and clarify some aspects of its content. For this reason, Article 15 (8) and (9) and Articles 32 and 33, in which the conditions for the application of certain exemptions provided for in Articles 12 and 14 of the Tax Law, were fulfilled.

Such a derogation is justified by the approval of Royal Decree 3485/2000 of 29 December 2000 on franchising and exemptions under diplomatic, consular and international bodies, and amending the General Regulation The Court of Law, adopted by Royal Decree 2822/1998 of 23 December 1998, which regulates some of these exemptions in this field.

In its virtue, on the proposal of the Minister of Finance, in accordance with the opinion of the Council of State and after deliberation of the Council of Ministers at its meeting on October 26, 2001,

D I S P O N G O:

Single item. Amendments to Royal Decree 2538/1994 of 29 December 1994 laying down detailed rules for the Indirect General Tax and the Arbitration for Production and Import in the Canary Islands, established by Law 20/1991, June 7.

1. Article 4 is worded as follows:

" Article 4. Concept of business or professional activities.

1. It is business or professional activities that involve the self-management of material and human factors of production, or of one of them, in order to intervene in the production or distribution of goods or services.

In particular, extractive, manufacturing, trade, or service delivery, including agricultural, forestry, livestock, fishing, construction, mining and the exercise of activities, have this consideration. Liberal and artistic professionals.

2. For the purposes of this tax, business or professional activities shall be deemed to have been initiated from the moment when the acquisition or import of goods or services is carried out with the intention, confirmed by objective elements, of destination the development of such activities, including in the cases referred to in paragraph 2 or 1, and paragraphs 1 and 2 of Article 5 of this Regulation. Those who make such acquisitions or imports will have the status of businessmen or professionals for the purposes of the Indirect General Tax. However, they must have the means of proof to prove the objective elements confirming that at the time they made those acquisitions or imports they had that intention, and they could be required to contribute to the tax administration.

3. The means of proof referred to in the preceding number may be any of those admitted in law.

To this end, the following circumstances may be taken into account:

(a) The nature of the goods and services acquired or imported, which shall be in line with the nature of the activity that is intended to be developed.

(b) The period between the purchase or import of such goods and services and the effective use thereof for the delivery of goods or services of services constituting the object of business or professional activity.

(c) Compliance with the formal, registered and accounting obligations required by character

general by the rules governing the tax, by the Commercial Code or by any other standard that is applicable, to those who have the status of businessmen or professionals.

In this respect, the following obligations shall be taken into account in particular:

(a ') The presentation of the declaration of a census in which the Administration must be notified of the commencement of business or professional activities by the acquisition or importation of goods or services with the intention of directing them to carry out such activities.

b ') The taking into account of the accounting obligations required by regulation, and in particular, of the Book Record of invoices received and, where appropriate, of the Book of the Register of Investment Goods.

d) Dispose of or have requested the authorizations, permissions, or administrative licenses that are necessary for the development of the activity that is intended to be performed.

e) Haber submitted tax returns corresponding to taxes other than the Indirect General Tax Canarian and related to that business or professional activity.

4. This Article shall also apply to those who, having already the status of an employer or a professional to be employed in such a way, initiate a new business or a new business. (a) professional training which is a distinct sector in relation to the activities that they have been developing before. "

2. Paragraph 12. of Article 8 (2) is amended, which is read as follows:

"12. º Loans and credits in money."

3. Article 10 (1) (b) is amended as

:

" (b) the transfer of the entire business or professional assets of the taxable person or of the property assets to one or more of the autonomous branches of the business of the transferor, pursuant to the transactions referred to in Article 97 of Law 43/1995 of 27 December 1995 on the Company Tax, provided that the transactions are entitled to the tax system governed by Chapter VIII of Title VIII of that Law.

For the purposes set out in this letter, the branch of activity shall be defined as defined in Article 97 (4) of the Law referred to in the preceding paragraph. "

4. Article 10 (8) is amended to read as follows:

"8. The deliveries of goods and services provided without consideration, except in the case of the alleged links referred to in Article 50 (3) of this Regulation."

5. Article 10 (9) is amended to read as follows:

" 9.The deliveries of goods and services made directly by the public authorities without consideration or through the provision of public assets.

The cases of non-subjection referred to in this issue shall not apply where the persons concerned act by means of a public, private, mixed undertaking or, in general, of commercial undertakings. "

6. Article 11 (13), paragraph 13, is amended as follows:

"13." 13. Services provided to natural persons who practice sport or physical education, whatever the person or entity to whose charge the benefit is provided, provided that such services are directly related to such practices and are provided by the following persons or entities:

a) Entities governed by public law.

b) Sports Federations.

c) Spanish Olympic Committee.

d) Spanish Paralympic Committee.

e) Private sports entities or establishments of a social character.

The exemption does not extend to sporting events. "

7. Paragraph 18 (h) of Article 11 (1) is amended as follows:

" (h) Trading, exchange and similar services having as their object foreign currency, banknotes and coins which are legal means of payment, with the exception of coins and notes of collection and of gold, silver and platinum.

For the purposes of the preceding paragraph, coins and banknotes which are not normally used for their function as a legal means of payment or have a numismatic interest shall be considered as a collection.

This exemption shall not apply to gold coins which have the consideration of investment gold in accordance with the provisions of Article 125a (2) (2) of this Regulation. "

8. The wording of Article 11 (1) (l) (l) is reworded, which shall be read as follows:

" (l) The management and deposit of collective investment institutions, of venture capital entities managed by management companies authorised and registered in the administrative special registers, of the funds of pension, mortgage market regulation, asset securitisation and retirement collective, established in accordance with their specific legislation. "

9. New wording is given to paragraph 28. of Article 11 (1), in the following terms:

"28." 28. The supply of goods and services performed by taxable persons persons whose total volume of operations carried out during the preceding calendar year had not exceeded the limit Article 10, number 1, paragraph 28.o of Law 20/1991, of 7 June, regulating this tax. This limit will be automatically amended each year by the Canary Tax Administration according to the variation in the price index for the consumption of the Autonomous Community of the Canary Islands.

For the purposes of this paragraph, the total amount of the supplies of goods and services made by the taxable person during the preceding calendar year, irrespective of the scheme, shall be considered to be a volume of transactions. tax or territory where they are delivered or rendered.

Employers, who are holders of agricultural holdings under the terms laid down in Article 114 of this Regulation, may waive the exemption provided for in the preceding paragraph, provided that they comply with the provisions of this Regulation. formal requirements to be laid down by the Government of the Canary Islands and to develop the activities to which the special arrangements for agriculture and livestock farming are applicable and do not give up.

The waiver of the waiver will operate in respect of all of its business or professional activities. "

10. A new paragraph 30.o is inserted in Article 11, number 1, which is worded as follows:

" 30. º The deliveries of the following recovery materials, as defined in Annex IIIa of the Tax Law, except that the competent Ministry of Finance of the Government of the Canary Islands authorizes the taxable person to to waive the application of the exemption under the terms and conditions set out in the number 4 of this Article:

(a) Waste or scrap of iron or steel, scrap or iron or steel scrap iron or steel, where the amount of deliveries of such materials has not exceeded 200 million pesetas (1,202,024,21 euro) during the preceding calendar year or until, in the current year, that amount exceeds the quantity indicated.

For the purposes of this exemption, the stainless steels shall not be included in this subparagraph.

(b) Waste or scrap of non-ferrous metals, including stainless steel, or their alloys, slag, ash and industry waste containing metals or their alloys, whatever the amount of the deliveries of these materials.

(c) Waste or scrap of paper, cardboard or glass, where the amount of the deliveries of these materials has not exceeded 50 million pesetas (EUR 300,506,05) during the preceding calendar year or until, in the year in question course, this amount exceeds the amount indicated.

The provisions of this paragraph shall not apply to the deliveries of recovery materials by the employers who obtain them in their own production processes. "

11. A new paragraph 31.o is added to Article 11 (1):

"31. The deliveries of goods and services performed by the State, the Autonomous Community of the Canary Islands and the Canary Local Entities."

12. A new number 4 is inserted in Article 11, which is worded as follows:

" 4.1 The Ministry of Finance of the Government of the Canary Islands shall authorise, at the request of the person concerned, the non-application of the exemption provided for in paragraph 30.oof the first paragraph of this Article when the Following requirements:

(a) that the relevant application relates to the totality of the recovery materials which the taxable person makes available on the market and that his undertaking to comply with the material obligations is expressly stated by him; (a) formal requirements of a general nature under the rules of taxation.

b) That its volume of operations relating to deliveries of recovery materials is higher than any of the following amounts and during the periods indicated:

a ') 100 million pesetas (601,012,10 euros) in the preceding calendar year or in the current year, in the case of the ferrous materials referred to in point (a) of paragraph 30. of this article.

b ') 250 million pesetas (1,502,530,26 euros) in the preceding calendar year or in the current year, or 150 million pesetas (901,518,16 euros) in each of the two previous years or in the previous year and in the current year, in the case of non-ferrous materials and other materials referred to in point (b) of paragraph 30. No. 1 of this Article.

c ') 20 million pesetas (120,202,42 euro) in the preceding calendar year or in the current year for the deliveries of waste or scrap of paper, cardboard or glass referred to in point (c) of paragraph 30. this article.

(c) that is the holder of the holding of a permanent establishment for the deposit or treatment of recovery materials and that such ownership has been extended for at least the period of time. taken into account for the determination of the volume of transactions, as provided for in point (b) above.

d) To present an inventory of their stocks of the recovery materials included in this article, referred to at the time the authorization is requested.

e) That it complies with the registration obligations that the Government of the Canary Islands will determine.

2. Furthermore, the competent authority shall, at the request of the person concerned, authorise the non-application of the exemption provided for in paragraph 30. of this Article where the conditions laid down in points (a) are met. (c), (d) and (e) of the preceding paragraph, its volume of operations during the preceding calendar year or in the current year, calculated in accordance with Article 97 of this Regulation, is greater than 10 million pesetas (60,101,21 euro) and provide the guarantee required by the Canary Tax Administration.

3. The applications referred to in the preceding paragraphs shall be made in the manner determined by the competent authority in the field of finance. After the period of three months without any express resolution, the authorisation shall be deemed to have been granted.

4. The authorization granted shall produce its effects in respect of the operations whose accrual takes place from the date of the granting of the same and as long as it is not revoked by the Economic and Finance Ministry, which may proceed to such an event. revocation when the causes that motivated it are not given. In such a case, the taxable person must present an inventory of his stock of recovery materials, referred to when he is notified of the revocation, as well as rectifying the deductions that he would have

practiced corresponding to the taxes supported or satisfied by the acquisition or import of the inventoried recovery materials, all in accordance with the procedure that determines The Government of the Canary Islands.

5. Regulations shall be determined by the Government of the Canary Islands for the procedure for the communications to be carried out by taxable persons, when they exceed the volume of transactions referred to in points (a) and (c) of paragraph 30 of this Article. Article 1, and where such a circumstance is amended. '

13. New wording is hereby given to Article 13 (2) or Article 13, which shall be read as follows:

" 2.o That the sum of the consideration corresponding to the deliveries of these goods in establishments located in the Canary Islands to the Social Security or to those who do not have the status of businessmen or professionals, made During the previous year, it would have exceeded 70 per 100 of the total of the realized.

The requirement set out in the preceding paragraph shall not apply in relation to taxable persons who, having the status of retail traders under the rules of the Economic Activities Tax, do not may calculate the percentage referred to in that paragraph for not having carried out commercial activities during the previous year. '

14. Article 14 (3) is amended, which shall be worded as follows:

" 3. Work done on movable property that is exported.

The performance of services consisting of works carried out on movable property acquired within the Canary Islands or imported to be the subject of such works and sent definitively to the Peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the European Union or definitively exported to third countries.

The aforementioned works may be of improvement, transformation, maintenance or repair of the goods, even by incorporating them to other goods of any origin and without the need for the goods to be the customs procedures covered by Article 13.2 of the Tax Law.

The work exemption will be conditional upon compliance with the following requirements:

1. The goods resulting from the work carried out shall be sent directly to the peninsular territory of Spain, the Balearic Islands, Ceuta, Melilla or any other Member State of the European Union or exported with the same character to third countries by whom they carried out such works or by their consignee not established in the territory of the Autonomous Community of the Canary Islands or by a third party in the name and on behalf of any of the foregoing, by stating in the departure document, where appropriate, the identification of the supplier established in the European Community and the reference to the invoice issued by the Community.

The departure of the goods from the territory of the Autonomous Community of the Canary Islands will have to be carried out in the form foreseen in the number 2 of this article.

2. The taxable person providing the services shall be in possession of the documents supporting the departure of the goods and the other documents which come from those indicated in the preceding number 1.

3. The goods must effectively leave the territory of the islands within one month of the completion of the work.

4. The non-established recipient or, where applicable, the service provider shall send the supplier of the goods a copy of the declaration in which it is credited, due diligence of the managing office, the departure of the goods of the Canary Islands. "

15. Article 15 (8) and (9) shall be repealed.

16. Articles 32 and 33 shall be repealed.

17. Paragraph 2. of Article 39 (3) is deleted.

18. Article 42 (2), paragraph 2, is amended, which shall be worded as follows:

" 2. No. Employers or professionals and, in any case, the public authorities for whom the transactions subject to taxation are carried out in the following cases:

(a) When such operations are carried out by persons or entities not established in the Canary Islands.

For the purposes of this Regulation, taxable persons who hold the seat of their economic activity, a permanent establishment at their domicile, are considered to be established in a given territory. tax, even if they do not carry out the operations from an establishment located in the Canary Islands.

(b) When they consist of unmanufactured gold deliveries or semi-finished products of gold, of a law of 325 thousandths or more.

Unworked gold or semi-finished gold is considered to be used normally as a raw material for the production of finished gold products, such as ingots, laminates, sheets, sheets, rods, threads, bands, tubes, pipes, tubes, pipes, tubes, pipes, tubes, pipes, tubes, pipes, tubes, pipes, tubes, grills, chains or any other which, by virtue of their objective characteristics, is not normally intended for final consumption.

(c) Where such operations are carried out pursuant to an administrative or judicial decision. "

19. Article 46 is amended as follows:

" Article 46. Rectification of the tax quotas passed on.

1. Taxable persons shall have to make the adjustment of the tax rates passed on when the amount of the tax has been incorrectly determined or the circumstances under which Article 49 of the Treaty is concerned. Regulation gives rise to the modification of the tax base.

The correction must be made at the time when the causes of the incorrect determination of the quotas are noticed or the other circumstances referred to in the preceding paragraph are produced, provided that they do not four years after the date on which the tax on the operation was established or, where appropriate, the circumstances referred to in Article 49 have occurred.

2. The provisions of the preceding paragraph shall also apply where, in the absence of any quota, the invoice or similar document for the operation has been issued.

3. By way of derogation from the above paragraphs, the correction of the tax quotas shall not be carried out in the following cases:

1. Where the rectification is not motivated by the causes provided for in Article 49 of this Regulation, it implies an increase in the shares passed on and the addressees of the transactions do not act as employers or professionals, except in cases of legal rise in tax rates, in which the correction may be made in the month in which the new tax rates enter into force and the next.

2. In the case of the Canary Tax Administration, which shows, through the corresponding liquidations, tax payments due and no higher than those declared by the taxable person and the This is a matter of the nature of the tax.

4. The correction of the tax-passed tax quotas must be documented in the form that the Government of the Canary Islands will regulate.

5. Where the correction of the quotas implies an increase of the initially passed on and has not been previously requested, the taxable person must present a rectifying declaration-settlement applying to the same the surcharge and the interest on late payment in accordance with Article 61 (3) of the General Tax Act.

By way of derogation from the foregoing paragraph, where the rectification is based on the causes of the modification of the tax base as set out in Article 49 of this Regulation or is due to an established error of law, the subject Liability may include the corresponding difference in the declaration-settlement of the period in which the correction is to be made.

When the rectification determines a minoration of the initially passed on quotas, the taxable person may opt for either of the following two alternatives:

(a) Start with the Canary Tax Administration the appropriate procedure for the return of undue income.

(b) Regularise the tax situation in the declaration-settlement for the period in which the correction is to be made or in the subsequent period up to one year from the time the correction was made Amendment. In this case, the taxable person shall be obliged to reintegrate the amount of the quotas into the recipient of the transaction. "

20. Article 48 is amended as follows:

" Article 48. Tax base in the supply of goods and services: General rule.

1. The tax base is constituted by the total amount of the consideration of the transactions subject to the tax from the recipient or third parties.

2. In particular, they are included in the concept of consideration:

1. Fees, fees and transportation, insurance, advance benefit premiums and any other cash in favor of the person making the delivery or providing the service, derived from the principal or the (i) the following:

2. Notwithstanding the provisions of paragraph 1 or above, interest shall not be included in the consideration of the deferral in the payment of the price in the part where the deferral corresponds to a period after the the supply of goods or the provision of services.

For the purposes of the foregoing paragraph, only the remuneration of the financial operations for the deferral or delay in the payment of the price, exempt from the tax under the provisions of the provisions, shall be considered to be of interest. in Article 11 (1) (18), point (b) of this Regulation, to be recorded separately on the invoice issued by the taxable person.

In no case will the part of the consideration that exceeds the usually applied in the market for similar operations be considered to be of interest.

3. The subsidies directly linked to the price of the transactions subject to the tax.

Grants established on the basis of the number of units delivered or the volume of services provided shall be considered to be directly linked to the price of the taxable transactions where they are determined before the performance of the operation.

In no case will the subsidies be included to allow the supply of Community products or available on the EC market, provided for in the Programme of specific options for the remoteness and insularity of the Canary Islands.

4. The taxes and levies of any kind that fall on the same taxable transactions, except the Indirect Canarian General Tax, the Arbitrio on Production and Import in the Canary Islands and the Special Taxes.

5. The perceptions retained under the right by the obligation to perform the provision in the cases of resolution of the transactions subject to the tax.

3. They shall not be included in the tax base:

1. The amounts received for compensation, other than those referred to in the preceding number, which by their nature and function do not constitute consideration or compensation for the supply of goods or services services subject to tax.

2. º The discounts and bonuses that appear separately on the invoice and which are granted prior to or at the same time when the operation is carried out and according to it.

The provisions of the preceding paragraph shall not apply where the price of the minorings constitutes remuneration for other transactions.

3. The sums paid in the name and on behalf of the client, by virtue of the express mandate of the client, which are included in the accounts by whom the goods are delivered or the services provided in the corresponding specific accounts. The taxable person shall be obliged to justify the actual amount of such expenditure and shall not deduct the tax which, if any, would have taxed them.

The provisions of the preceding paragraph shall not apply where the impact on the recipient is agreed upon in respect of a sum of fixed money, independent of the sum actually paid in the name and on behalf of the client.

4. In the case of supplies of goods made on any of the islands, in the case of goods imported or manufactured on another island other than the Canary Islands, the expenditure in question shall not be included in the taxable amount. ports or airports, insurance and precise freight rates for the transfer from the last island to the delivery.

4. Where the quotas of the Indirect General Tax on the transactions subject to it were not expressly passed on to an invoice or an equivalent document, the consideration shall be deemed not to include such quotas.

Except as provided in the preceding paragraph:

1. The cases in which the express impact of the tax is not compulsory.

2. º The assumptions referred to in paragraph 5.o of this Article. "

21. Article 49 is amended as follows:

" Article 49. Amendment of the tax base.

1. The taxable amount determined in accordance with the provisions of Article 48 above shall be reduced in the following cases and amounts:

1. The amount of packaging and packaging that can be reused that have been returned.

2. º The discounts and bonuses awarded after the operation has been carried out whenever they are duly justified.

2. Where, by final decision, judicial or administrative decision or in accordance with the law or the trade practice, the transactions are not fully or partially affected or the price is altered after the date on which the transaction was carried out, the Tax base will be amended to the corresponding amount.

3. The taxable amount may be reduced where the addressee of the transactions subject to the tax has not made the payment of the shares passed on and provided that, after the operation has become established, the court of justice of the admission to the process of suspension of payment or of a court order to declare bankruptcy of that person.

The amendment, where appropriate, may not be made, in the case of a suspension of payments, after the 15th day preceding the judicial approval of the final list of creditors, nor, in the case of bankruptcy, from the twelfth day before the conclusion of the Board of Examination or credit recognition, and also after the approval of the agreement if it were made prior to the said Board.

Only when the file for the suspension of payments is dismissed for any reason or the bankruptcy declaration is left without effect, the creditor who has modified the tax base will have to rectify it again on the basis of the in the period to be fixed by the Government of the Canary Islands, of a new invoice, in which the quota as amended is passed on.

4. The tax base may also be reduced where the appropriations corresponding to the shares passed on by the transactions taxed are wholly or partly non-performing.

For these purposes, a credit shall be considered total or partially non-performing when it meets the following conditions:

1. That two years have elapsed since the accrual of the tax passed without the recovery of all or part of the credit derived therefrom.

2. That this circumstance has been reflected in the records required for this tax.

3. The taxable person has called for his recovery by legal claim to the debtor.

The modification shall be made within three months of the end of the two-year period referred to in condition 1.a as set out in the preceding paragraph and communicated to the Tax Administration. Canary Islands within the time limit to be fixed.

The provisions of this paragraph shall apply only where the addressee of the operations acts as a businessman or a professional.

Once the tax base is reduced, the tax base will not be modified upwards even if the taxable person obtains the full or partial collection of the consideration.

5. The following rules shall apply in relation to the assumptions for the modification of the tax base covered by the preceding numbers 3 and 4:

1. The modification of the tax base will not proceed in the following cases:

a) Credits that enjoy collateral, in the guaranteed part.

(b) Credits secured by credit institutions or mutual guarantee companies or covered by an insurance or credit insurance contract, on the part secured or secured.

(c) Credits between persons or related entities as defined in Article 50 (3) of this Regulation.

d) Credits owed or secured by public entities.

2. The modification of the taxable amount shall not be effected where the recipient of the transactions is not established in the territory of application of the tax.

3. In the case of partial payment prior to the said modification, it is understood that the Indirect General Tax Canarian is included in the amounts received and in the same proportion as the part of consideration satisfied.

4. The rectification of the deductions of the recipient of the transactions, which must be carried out in accordance with Articles 80, 81 and 82 of this Regulation, shall determine the birth of the corresponding credit in favour of the Public Finance.

If the addressee of the transactions subject had not been entitled to the total deduction of the tax, he will also be liable to the Public Finance for the amount of the non-deductible tax.

5. If the amount of the consideration is not known at the time of the tax accrual, the taxable person shall provisionally fix it by applying sound criteria, without prejudice to his/her rectification when said amount is known.

6. In the cases referred to above, the reduction in the tax base will be conditional on compliance with the requirements to be established by the Government of the Canary Islands. "

22. Article 54 is amended as follows:

" Article 54. General tax rate.

1. The General Indirect Tax Shall Be Required At The Rate Of 5 Per 100, With The Exception Of The Following Articles.

2. The tax rate applicable to each transaction shall be that in force at the time of the accrual. '

23. Article 55 is amended, which will have the following wording:

" Article 55. Zero type.

1. Zero type will be applied to the following operations:

a) Captation, production and distribution of water, except mineral and gaseous water.

(b) deliveries of the following products, provided that they are used for medical or veterinary purposes: proprietary medicinal products, master formulae, official formulae or formulas and prefabricated medicinal products.

Also, the medicinal substances used in obtaining the above products.

These are not included in this section, cosmetics or substances and products for purely hygienic use.

(c) The deliveries of books, newspapers and magazines which do not contain single or essentially advertising, as well as the complementary elements which are delivered jointly with these goods by means of a single price.

For these purposes, they shall be considered to be complementary to the magnetophonic tapes, discs, videocasses and other similar sound or video media, the acquisition cost of which does not exceed 50 per 100 of the price unit for sale to the public.

It will be understood that books, newspapers and magazines contain mainly advertising, when more than 75 percent of the income that they provide to their publisher is obtained by this concept.

Albums, scores, maps, drawing books and objects which, by their characteristics, can only be used as school materials, except for electronic articles and apparatus, shall be considered to be included in this letter.

(d) deliveries of products recorded by magnetic or optical means of educational or cultural use as listed in Article 23 (4) of this Regulation, with the exception of those expressed under the Code " ex 9023 00 "and the heading" miscellaneous ", provided that they are delivered or imported by:

Establishments or bodies declared to be of public interest, of an educational or cultural nature.

Other establishments or bodies of educational or cultural nature, when the imports are authorized for this purpose by the Canary Tax Administration.

(e) Home deliveries, administratively qualified as official protection of special arrangements and deliveries of works of Community equipment, where the deliveries are made by the promoters of the "

In this section, the garages and annexes shall not be included in the aforementioned houses, which are transmitted independently of them or the business premises.

(f) The execution of works, with or without material input, as a result of contracts directly formalized between the promoter and the contractor, which have as their object the construction and rehabilitation of the dwellings administratively qualified as official protection of special arrangements or works of community equipment. For the purposes of this Regulation, measures for reconstruction are considered to be rehabilitation by means of the consolidation and treatment of structures, facades or covers and other similar structures, provided that the overall cost of such operations exceed 25 per 100 of the purchase price if it had been carried out during the two years immediately preceding, or otherwise, the true value of the building or part thereof prior to its rehabilitation.

For the purposes of this letter and the above, Community equipment shall be understood to consist of:

The construction of buildings destined for the public service of the State, the Autonomous Community of the Canary Islands, the Local Corporations, the Social Security Management Entities and the autonomous agencies dependent on the same.

Construction of educational institutions at all levels and degrees of the education system, language schools and vocational training and retraining.

Construction of public parks and gardens and road surfaces in urban areas.

First construction of infrastructure (water, telecommunications, electricity and sewage) in urban areas.

In no case are the works of conservation, maintenance, reforms, rehabilitation, extension or improvement of these infrastructures included.

Works for the construction of potabilizers, desalination and sewage treatment plants.

g) The deliveries of official protection homes directly promoted by the Public Administrations, provided that they are financed exclusively by the public authorities from their own resources.

(h) the execution of works with or without the provision of materials, as a result of contracts directly formalised between the public authorities and the contractor, which are intended to build or rehabilitate the dwellings referred to in the preceding point.

For the purposes of the provisions of this letter and in the previous letter, public authorities will be treated as public companies whose object is the construction and rehabilitation of social housing.

i) The deliveries of common bread.

(j) The deliveries of breadmaking and food and cereal flour for processing.

k) The delivery of eggs.

l) deliveries of natural fruit, vegetables, vegetables, pulses and tubers which have not undergone any processing, manufacture or manufacture of an industrial character, as laid down in the Article 115 of this Regulation.

m) the deliveries of meat and fish which have not undergone any processing, manufacture or manufacture of an industrial character, in accordance with Article 115 of this Regulation.

n) deliveries of products derived from intensive livestock farms and fish farming.

n) deliveries of milk, including hygiene, sterilised, concentrated, skimmed, evaporated and powdered, as well as milk preparations assimilated to these products, which have been replaced by animal fat originating in fats of plant origin.

o) The cheese deliveries.

p) Transport of passengers and goods by sea or air between the islands of the Canary Islands.

q) The execution of the work carried out by the installation of kitchen and bathroom cabinets and fitted wardrobes for the buildings referred to in point (f) above, which are carried out as a result of contracts directly formalized with the promoter of the construction or rehabilitation of said buildings.

2. The zero rate of taxation shall also apply to imports of goods falling within the preceding number. '

24. Article 56 is amended and read as follows:

" Article 56. Reduced rate.

The reduced tax rate of 2 per 100 of the Canarian Indirect General Tax will apply to the following operations:

1. Deliveries or imports of the goods listed below:

1. Products derived from the following industries and activities:

Extracts, preparation and agglomeration of solid fuels and coke.

Oil and its refining.

Extraction and transformation of radioactive minerals.

Production, transportation and distribution of electrical energy, gas, steam and hot water.

Extracting and preparing metal ores.

Production and first metal transformation.

Extraction of non-metallic or energy minerals. Peatlands.

Non-metallic mineral products industries.

Chemical industry.

Manufacture of oils and fats, vegetables and animals.

Slaughter of cattle, preparation and preserves of meat.

Textile industry.

Leather industry.

footwear and clothing industry and other textile garments.

Wood, cork and wooden furniture industries.

Manufacture of paper pulp.

Manufacture of paper and cardboard.

Paper and cardboard processing.

Industries for the transformation of rubber and plastic materials.

2. The appliances and accessories, including graduated glasses and lenses, which are objectively considered to be intended only for the physical deficiencies of man or animals.

Medical devices, equipment, equipment and instruments that, objectively considered, can only be used to prevent, diagnose, treat, alleviate or cure diseases or diseases of man or animals.

3. The disabled cars referred to in issue 20 of the Annex to Royal Legislative Decree 339/1990 of 2 March, approving the articulated text of the Law on Traffic, Circulation of Motor Vehicles and Road Safety and the Wheel Silks for Exclusive Use of Persons with Minusvalia.

4. Vehicles intended for use as self-taxis or special self-passenger cars for the carriage of persons with a wheelchair, either directly or prior to their adaptation.

The application of the reduced tax rate to vehicles covered by the preceding paragraph will require prior recognition of the right of the acquirer, who must justify the vehicle's destination.

5. The repair services of cars and wheel chairs included in paragraph 3.o above and the services for the adaptation of self-taxis and self-passenger cars for persons with disabilities as referred to in paragraph 4. precedent.

For the purposes of this Regulation, persons with disabilities shall be deemed to have this legal status in a degree equal to or greater than 33 per 100, according to the scale referred to in the second provision of the Law. 26/1990 of 20 December.

6. The following goods which are likely to be used as usual and suitable for agricultural, forestry or livestock activities: seeds, materials for the protection and reproduction of plants or animals, fertilizers and amendments, plant protection products, herbicides and organic waste.

The machinery, tools or tools used in the above activities shall not be included in this paragraph.

7. The substances and products whatever their origin, which, for their characteristics, applications, components, preparation and conservation status, are likely to be common and suitable for nutrition human or animal, in accordance with the provisions of the Food Code and the provisions laid down for its development, except for alcoholic beverages.

An alcoholic beverage means any liquid suitable for human consumption by ingestion containing ethyl alcohol.

For the purposes of this paragraph, they shall not have the consideration of food, tobacco or substances unfit for human or animal consumption in the same state in which they were delivered or imported.

8. The animals, plants and other products likely to be used as usual and suitable for the production of the products referred to in the previous paragraph, directly or mixed with other products of different origin.

Animals intended for fattening are included in this paragraph before being used for human or animal consumption and breeding animals of the animals or animals referred to in the preceding paragraph.

9. The deliveries of houses which are administratively qualified as official protection of general arrangements, when the deliveries are carried out by the promoters.

The concept of the dwellings in the previous paragraph shall not be understood as the business premises, nor shall the garages or the annexes which are transmitted independently of them.

10. The execution of works, with or without the provision of materials, as a result of contracts directly formalized between the promoter and the contractor, which have as their object the construction or rehabilitation of the dwellings administratively qualified as official protection of the general regime.

11. The execution of works, with or without material input, result of contracts directly formalized between the developer-builder and the contractor, which have as their object the self-construction of qualified dwellings administratively as protected under the applicable specific legislation.

12. º The execution of the work carried out by the installation of kitchen and bathroom cabinets and fitted wardrobes for the buildings referred to in paragraphs 10.o and 11.o above, which are carried out as the result of contracts directly formalised with the promoter of the construction or rehabilitation of such buildings.

2. The following services capabilities:

1. The services of land transport services.

2. The services provided to natural persons who practice sport or physical education, whatever the person or entity to whose charge the benefit is provided, provided that such services are directly related with such practices and the exemption referred to in Article 11 (1) (1) of this Regulation is not applicable to them. '

25. A new article is created, the 56a, which will have the following wording:

" Article 56a. Increased rate.

The increased tax rate of 9 per 100 will apply to deliveries or imports of the goods listed below:

(a) Motor driven vehicles with power equal to or less than 11 hp, except:

(a ') The vehicles included in paragraphs 3.o and 4.o of Article 56 of this Regulation.

b ') Two-and three-wheel vehicles with a cylinder capacity of less than 50 cubic centimetres and complying with the legal definition of moped.

c ') Vehicles except for the application of the increased rate of 13 per 100 contained in paragraph 3.o of Article 57 (1) of this Regulation.

(b) Ships and ships in whose delivery or import the increased rate of 13 per 100 is not applicable, except for Olympic vessels. In any case they will be taxed at the increased rate of 9 per 100 the jet skis.

(c) Aircraft, aircraft and other aircraft in the delivery or import of which the increased rate of 13 per 100 is not applicable. "

26. Article 57 is amended as follows:

" Article 57. Increased rate.

The increased tax rate of 13 per 100 of the Indirect General Tax Canarian will apply the following operations:

1. Deliveries or imports of the goods listed below:

1. Pure cigars with a price of more than 200 pesetas. Other cigars are taxed at the general rate.

2. Compounds, liqueurs, appetizers without a base wine and other beverages derived from natural alcohols, in accordance with the definitions laid down in the Statute of the Wine, Wine and Spirits and Regulations Complementary and also the alcoholic extracts and concentrates suitable for the production of derived beverages.

3. Motor powered vehicles with power exceeding 11 hp, except:

(a) lorries, motor vehicles, vans and other vehicles which, by reason of their objective configuration, cannot be used for other purposes than the carriage of goods.

(b) Buses, minibuses and other vehicles suitable for the collective transport of passengers, which:

Have a capacity exceeding nine seats, including that of the driver, or whichever capacity, have a height above the ground of more than 1,800 millimetres, except for "jeep" or off-road vehicles.

(c) Multiple-use vans and vans, the total height of which is above 1,800 millimetres and are not "jeep" or off-road vehicles.

d) Motor vehicles considered as taxis, autocabs or self-driving cars under the current legislation.

e) Those which, objectively considered, are of exclusive industrial, commercial, agricultural, clinical or scientific application, provided that their serial models or the vehicles individually have been duly approved by the Tax administration of Canary Islands. For this purpose, multiple-use vans and vans of any height shall be considered to have exclusively one of these applications provided that they have only two seats for the driver and the assistant, in no case shall they possess additional seats and the space for the load not to have lateral visibility and be more than 50 per 100 of the internal volume.

(f) Vehicles acquired by disabled persons, not referred to in Article 56 of the Regulation, for their exclusive use if the following conditions are met:

At least four years have elapsed since the acquisition of another vehicle under similar conditions.

However, this requirement will not be required in case of total casualty of the vehicles, certified by the insurance company.

Not subject to subsequent transmission by means of live acts for the four years following the date of their acquisition.

Failure to comply with this requirement will determine the obligation, in charge of the beneficiary, to enter into the Public Finance the difference between the quota that would have been borne by application of the increased rate and the actual supported when the vehicle was purchased.

The application of the general tax rate will require prior recognition of the right of the acquirer in the form determined by the Government of the Canary Islands. The degree of disability must be credited by means of a certificate or a decision issued by the Institute for Migration and Social Services or by the competent authority of the Autonomous Communities in respect of the assessment of disability.

4. º Trailers for tourism vehicles.

5. º Ships and recreational vessels or nautical sports that are more than nine meters long on deck, except for the Olympic vessels.

6. Aircraft, aircraft and other aircraft, fitted with a mechanical engine, except:

(a) Aircraft which, due to their technical characteristics, can only be used for agricultural or forestry work or for the movement of sick or injured persons.

(b) Aircraft with a maximum take-off weight of not more than 1,550 kilograms, as issued by the Directorate-General for Civil Aviation.

(c) Those acquired by schools officially recognised by the Directorate General of Civil Aviation and intended exclusively for the education and training of pilots or their professional retraining.

d) Those acquired by the State, Autonomous Communities, Local Corporations or by companies or public bodies.

e) Those acquired by air navigation companies, including by virtue of leasing contracts.

(f) Those acquired by undertakings for leasing exclusively to air navigation companies.

7. º shotguns, even those of compressed air, and other long firearms, the consideration of which per unit is equal to or greater than 45,000 pesetas (270,46 euros).

8. Cartuchery for hunting shotguns and, in general, for the other weapons listed in the previous paragraph, when their consideration per unit is greater than 17 pesetas (0.10 euros).

9. Jóyas, alhajas, gemstones and semi-precious stones, natural pearls, cultivated and imitation, objects made entirely or partially with gold, silver or platinum, the commemorative coins of legal tender, the damasquines and the Jewellery.

Not included in the preceding paragraph:

a) The objects of exclusive industrial, clinical or scientific application.

(b) Bullets not prepared for sale to the public, plates, sheets, rods, scrap, bands, powder and tubes containing gold or platinum, provided they are all purchased by manufacturers, artisans or protesics for their purposes processing or by wholesale traders of such metals for exclusive sale to manufacturers, artisans or protesics.

(c) Parts of incomplete manufactured goods or articles that are transferred between manufacturers for processing or subsequent processing.

For purposes of this tax are considered precious stones, exclusively, diamond, ruby, sapphire, emerald, aquamarine, opal and turquoise.

10. º pocket watches, wristband, desktop, foot, wall, etc., whose unit consideration is equal to or greater than 20,000 pesetas (120.20 euros).

11. º All kinds of articles of glass, glass, loza, ceramics and porcelain that have artistic or ornament finality whose consideration per unit is equal to or greater than 10,000 pesetas (60.10 euros).

12. º hand-knot carpets in wool and fur.

13. Personal clothing or clothing accessories made with skins. Bags, wallets and similar objects, and garments made exclusively from retals or waste, are not included in this paragraph.

14. º Perfumes and extracts.

15. º Production, distribution and assignment of film rights to be exhibited in the "X" rooms, as well as the exhibition of the same.

2. The following services capabilities:

1. The leasing of motor-powered vehicles, including those of power equal to or less than 11 hp. However, the lease of the vehicles referred to in points (a), (b), (c) and (e) of paragraph 1.3.o above shall not be included in this paragraph, irrespective of their tax power.

2. The lease of the other goods related to the previous number 1 whose delivery or import is taxed at the rate increased as regulated in this article. "

27. A new article is created, the 57a, which will have the following wording:

" Article 57a. Special rates.

The following special rates shall apply to deliveries and imports of tobacco products:

a) For black tobacco work: 20 per 100.

b) For the work of blond tobacco and tobacco substitutes: 35 per 100. "

28. Article 59 shall be worded as follows:

" Article 59. Subjective requirements of the deduction.

1. They may only make use of the right to deduct taxable persons who, having the status of employers or professionals in accordance with Articles 4 and 5 of this Regulation, have effectively initiated the normal performance of the the supply of goods or services corresponding to their business or professional activities.

2. By way of derogation from the preceding number, the fees incurred or previously satisfied at the start of the usual delivery of supplies of goods or services corresponding to their business or professional activities may be deducted in accordance with Article 76 of this Regulation.

3. The exercise of the right of deduction for taxable persons to whom the special schemes governed by Title III of this Regulation apply shall be carried out.

according to the rules set out in that title for each of them.

4. No deduction shall be made, in any measure or amount, of the shares supported or satisfied by the acquisitions or imports of goods or services carried out without the intention of using them in the conduct of business or professional, even if subsequently such goods or services are totally or partially affected by those activities.

5. The above mentioned number of this article will also apply to those who, having already the status of employer or professional to come carrying out activities of such nature, initiate a new business or professional activity which it is a distinct sector in relation to the activities that they have been carrying out before. "

29. A new point (h) is added to Article 60 (4) or Article 4

4):

"(h) Telecommunications services and the supply of exempt investment goods by application of the provisions of Articles 24 and 25, respectively, of Law 19/1994, of 6 July."

30. Article 61 (1) of the first paragraph is amended as follows:

" 4. º The quotas supported as a result of acquisitions, leases or imports of jewelry, jewelry and similar articles, garments or personal adornment made with skins of a sumptuous character, tobacco manufactured and tapestries. "

31. Article 64 is amended as follows:

" Article 64. Exercise of the right to deduction.

1. In the statements-settlements for each of the settlement periods, the taxable persons may deduct overall the total amount of the deductible contributions incurred during that period of the total amount of the General Indirect Tax Payable during the same period of liquidation in the Canary Islands as a result of the supply of goods or services provided by them.

2. Deductions shall be made on the basis of the foreseeable destination of the goods and services acquired, without prejudice to their subsequent rectification if the latter is altered.

However, in the cases of destruction or loss of goods acquired or imported, for reasons not attributable to the taxable person duly justified, the said rectification shall not be required.

3. The right of deduction may be exercised only in the declaration-settlement relating to the period of liquidation in which the holder has borne the deductible or successive instalments, provided that the time limit of four years has not elapsed. years, counted from the birth of that right. The percentage of deduction of the deductible deductible fees shall be the final one of the year in which the right to deduct from the said quotas has been incurred.

When there is an order for the administration or the inspector to act, they will be deductible in the settlements that come, the supported quotas that were duly accounted for in the established books by the Government of the Canary Islands for this Tax, provided that the period referred to in the preceding paragraph has not elapsed.

4. The deductible fees shall be deemed to be supported at the time when the holder receives the corresponding invoice or, where appropriate, the document justifying the right to deduct.

In the cases referred to in Article 63 (2) of this Regulation, deductible fees shall be deemed to be supported at the time the right to deduction is born.

5. Where the amount of the deductions exceeds the amount of the contributions due during the same period of liquidation, the excess may be deducted in chronological order in the immediately subsequent settlement-statements in the amount maximum possible in each of them and up to a period of four years, counted from the date of termination of the period in which the right to deduction originated.

However, the taxable person may choose to repay the existing balance in his favour when it comes under the provisions of this Regulation, without being able to make his deduction in such a case. post-settlement statements, whatever the elapsed time period, until such return becomes effective.

6. In the case of errors or modifications of bases or tax quotas, the correction in the deductions must be made in the form and deadlines that are established by the Canary Tax Administration, without prejudice to the provisions in Articles 80, 81 and 82 of this Regulation. '

32. Article 65 is amended as follows:

" Article 65. Expiry of the right of deduction.

The right to the deduction expires when the holder has not exercised it within the periods and amounts indicated in the previous article.

However, in cases where the provenance of the right to deduct or the amount of the deduction is pending the settlement of a dispute on an administrative or jurisdictional basis, the right to the deduction shall lapse when four years have elapsed since the date on which the judgment or judgment is final. '

33. Article 66 (1) and (2) of the Regulation are amended as follows:

" 1. Taxable persons carrying out economic activities in sectors differentiated from business or professional activity shall apply the deduction scheme irrespective of each of them.

The application of the special pro rata rule may be applied independently of each of the distinct sectors of business or professional activity determined by application of the provisions of the (a) and (c) of the second paragraph of this Article.

The deduction schemes for the differentiated sectors of activity determined by application of the provisions of paragraph 2 (b) of this Article shall, in any event, be governed by the provisions of this Article. for the simplified special schemes, for agriculture and livestock farming, for operations with investment gold and for retail traders, as appropriate.

When acquisitions or imports of goods or services for use in common in several different sectors of activity are carried out, it shall apply as set out in Article 69, numbers 2 and Regulation to determine the percentage of deduction applicable in respect of the quotas supported by such acquisitions or imports. To this end, the operations carried out in the corresponding differentiated sectors shall be taken into account and shall be considered as not to give rise to the right to deduct the operations included in the special arrangements for agriculture and livestock or in the special arrangements for retail traders.

By way of derogation from the foregoing paragraph and provided that the provisions of the above paragraph cannot be applied, where such goods or services are intended to be used simultaneously in activities under the special arrangements In the case of the simplified scheme, the rate of deduction, for the purposes of the simplified scheme, shall be 50 per 100 if the affectation occurs, and in other activities subject to the special arrangements for agriculture and livestock or retail traders. in respect of activities subject to two of these special schemes, or one third, in another case.

2. For the purposes of this Regulation, the following shall be considered as distinct sectors of business or professional activity:

a ') Those in which the economic activities carried out and the applicable deduction schemes are different.

Different economic activities will be considered those that have different groups assigned in the National Classification of Economic Activities.

By way of derogation from the preceding paragraph, the ancillary activity shall not be deemed to be different when, in the preceding year, its volume of operations does not exceed 15% of that of the latter and, in addition, it contributes to its realization. If the ancillary activity has not been exercised during the preceding year, in the current year the requirement relating to the said percentage shall be applicable in accordance with the reasonable forecasts of the taxable person, without prejudice to the if the actual percentage exceeded the indicated limit.

Ancillary activities will follow the same regime as the activities they rely on.

The deduction schemes referred to in point (a) shall be considered as distinct if the percentages of deduction, determined in accordance with Article 69 of this Regulation, which would be applicable in the activities or activities other than the main one differ by more than 50 percentage points from that corresponding to that main activity.

The main activity, together with the ancillary activities to the same and the different economic activities whose percentages of deduction do not differ by more than 50 percentage points with that of the single sector differentiated.

Activities other than the main one whose deduction rates differ by more than 50 percentage points with that of the principal will be another distinct sector of the principal.

For the purposes of point (a '), the activity in which the largest volume of transactions had been carried out during the preceding year shall be considered to be principal.

b ') Activities covered by the simplified special arrangements for agriculture and livestock farming, investment gold operations and activities carried out by retail traders which are exempt under the terms of the Article 11 (1) (27) of this Regulation, as well as those to which the special scheme of the retail trader applies.

c ') The leasing operations referred to in the seventh additional provision of Law 26/1988 of 29 July on the discipline and intervention of credit institutions. "

34. Article 67 is amended as follows:

" 67. Pro rata rule.

The pro rata rule shall apply where the taxable person, in the course of his business or professional activity, jointly makes supplies of goods or services which give rise to the right of deduction and other operations of a similar nature which do not enable the exercise of that right.

The prorrata rule shall also apply where the taxable person receives subsidies which, in accordance with Article 48.2.3. of this Regulation, do not include the taxable amount, provided that they are intended to finance activities business or professionals of the taxable person. '

35. New wording is given to Article 69 which will be worded as follows:

" Article 69. The overall pro rata.

1. In the case of application of the general pro rata, only the tax incurred in each settlement period shall be deductible in the percentage resulting from the following number 2.

For the application of the provisions of the preceding paragraph, the fees that are not deductible under the provisions of Articles 60 and 61 of this Regulation shall not be counted in the input tax.

2. The percentage of the deduction referred to in the preceding number shall be determined by multiplying by one hundred the result of a fraction in which they appear:

1. º In the numerator, the total amount, determined for each calendar year, of the supplies of goods and services resulting from the right to deduction, made by the taxable person in the course of his business business or professional or, where appropriate, in the appropriate differentiated sector.

2. º In the denominator, the total amount, determined for the same period of time, of the supplies of goods and services performed by the taxable person in the development of his business or professional activity or, where appropriate, in the differentiated sector concerned, including those which do not give rise to the right to deduct, increased by the total amount of the grants which, in accordance with Article 48 (2) (3) of the Regulation, do not integrate the tax base, provided that they are intended to finance activities business or professionals of the taxable person.

These are transactions that do not cause the right to deduct, for the purposes of their inclusion in the denominator of the prorrata, the transactions related to Article 11.1 of this Regulation made by the taxable person in or out of The Canary Islands, with the exception provided for in Article 60.4.1. (e) of the Regulation, as well as operations not subject to the numbers 8, 9, 9 and 10. of Article 10 of this Regulation.

Grants shall be included in the denominator of the pro rata in the year in which they are effectively collected, except for capital, which shall be charged in the form indicated in the following paragraph. Such grants shall not be included in so far as they relate to the exempt or non-taxable transactions originating in the right to the deduction.

Capital grants shall be included in the denominator of the pro rata, although they may be charged by fifths in the year in which they were received and in the following four. However, grants of capital granted to finance the purchase of certain goods or services, acquired under operations which are subject to and not exempt from the tax, shall exclusively be subject to the amount of the deduction of the quotas. supported or satisfied by such operations, to the extent that they have contributed to their financing.

For the purposes of the preceding paragraphs of this paragraph 2. the following grants shall not be taken into account, which do not integrate the tax base in accordance with the provisions of Article 48 of this Regulation:

(a) Those received by the special employment centres governed by Law 13/1982 of 7 April, when they meet the requirements laid down in Article 43 (2).

b) Those aimed at enabling the supply of Community products or available on the EC market, provided for in the programme of specific options for the remoteness and insularity of the Canary Islands.

(c) Those granted for the purpose of financing expenditure for the implementation of research, development or technological innovation activities. For these purposes, they shall be regarded as such activities and costs of carrying out the same as those defined in Article 33 of Law 43/1995 of 27 December 1995 on Corporate Tax.

In transactions for the disposal of foreign currency, banknotes and coins that are legal means of payment, exempt from the tax, the amount to be computed in the denominator shall be that of the consideration of the resale of such means of payment, increased, where appropriate, in that of the commissions received and mined in the purchase price of the same or, if this could not be determined, in the price of other currencies, banknotes or coins of the same nature acquired on the same date.

In transactions for the disposal of promissory notes and non-integrated securities in the financial institution's portfolio, the amount to be computed in the denominator shall be that of the consideration of the resale of such increased effects, in its the case, in that of the interest and commissions payable and minorated in the purchase price of the same.

Dealing with securities integrated in the financial institutions ' portfolio shall be computed in the denominator of the proportion of the interest payable during the appropriate period of time and, in the case of transmission of the referred to values, the gains obtained.

The deduction pro rata resulting from the application of the above criteria will be rounded up in the top unit.

3. For the determination of this percentage, it shall not be computed in any of the terms of the relationship:

1. Operations from establishments located outside the Canary Islands where the costs relating to such operations are not borne by establishments located in the territory of application of the tax.

2. º The quotas of the Indirect General Tax Canarian that have directly taxed the operations referred to in the previous number 2.

3. º The amount of the deliveries of those investment goods that the taxable persons have used in their business or professional activity.

4. º The amount of real estate or financial transactions that do not constitute business or professional activity typical of the taxable person.

In any case, a typical business or professional activity of the taxable person shall be deemed to be the lease.

They shall have the consideration of financial transactions for these purposes as described in Article 11 (1) (18) of this Regulation.

5. º Imports and acquisitions of goods or services.

6. º The amounts paid by the public authorities or the insurance institutions in respect of damages caused by claims.

4. For the purposes of the calculation of the pro rata, the total amount of operations shall be the sum of the consideration for the same, determined as laid down in Articles 48 and 50 of this Regulation, even in respect of transactions exempt from the tax.

Dealing with shipments of goods of a definitive nature to the peninsula, Balearic Islands, Ceuta, Melilla, any other EC Member State or final exports not covered by Article 14 of this Regulation, shall take as the amount of the operation the value within the Canary Islands of the exported products determined in accordance with Article 50 (1) of this Regulation.

5. In the case of non-taxable transactions in the denominator of the pro rata, the total amount of transactions shall be:

(a) In the operations provided for in Article 10 (8) of this Regulation, the market value of those operations.

(b) In the operations provided for in Article 10 (9) of this Regulation, its budgetary cost.

(c) In the operations provided for in Article 10 (10) of this Regulation, the value assigned for the purposes of the Tax on Proprietary Transmissions and Legal Acts Documented.

6. In the case of the execution of works with the contribution of materials, carried out outside the Canary Islands, the value of the materials sent definitively to the Canary Islands shall be taken as the amount of the operation. peninsular, Balearic Islands, Ceuta, Melilla, any other EC Member State or exported to third countries, determined in accordance with Article 50 (1) of this Regulation.

7. In order to make the temporary allocation, the rules on the tax accrual laid down in this Regulation shall apply, in respect of all transactions included in the preceding numbers.

However, the supply of goods to the peninsula, Balearic Islands, Ceuta, Melilla, any other EC Member State or export, exempt from the tax in accordance with Article 14 of this Regulation. Regulation, and other final shipments or exports of goods, shall be understood to be carried out at the time when the relevant request for departure is accepted by the competent body. "

36. The first rule in Article 71 (1) is amended, which is worded as follows:

" First: The tax quotas supported in the purchase or import of goods or services used exclusively in the conduct of transactions originating from the right to deduction may be deducted in full.

However, in the event that such operations are financed through grants which, as provided for in Article 48.2.3. of this Regulation, do not integrate the tax base, the provisions of the third paragraph of Article 4 (3) of Regulation (EC) No 1364/2014 are to be applied. this article. '

37. Article 73 (2) is amended as

:

" 2. For these purposes, they shall not have the consideration of investment goods:

1. The accessories and spare parts purchased for the repair of the investment goods used by the taxable person.

2. The execution of works for the repair of other investment goods.

3. º Packaging and packaging, even if they are susceptible to reuse.

4. The clothes used for the work by the taxable persons or the dependent personnel.

5. The goods excluded from the right to deduction as provided for in Article 61 (1) of this Regulation.

6. Any other asset whose acquisition value is less than five hundred thousand pesetas (3,005,06 euros). "

38. Article 76 shall be worded as follows:

" Article 76. Deductions from the fees incurred or satisfied prior to the start of the delivery of goods or services corresponding to business or professional activities.

1. Those who do not previously develop business or professional activities and acquire the status of an employer or professional for making acquisitions or imports of goods or services with the intention, confirmed by (i) objectives, to be aimed at carrying out such activities, may deduct the quotas which, on the occasion of such operations, bear or satisfy before the date on which the supply of goods or goods is normally carried out; (a) the provision of services corresponding to those activities, in accordance with the provided for in this Article and in Article 77 below.

The provisions of the preceding paragraph shall also apply to those who, having already the status of employer or professional to come carrying out such activities, initiate a new business or professional activity which it is a distinct sector in relation to the activities that they have been carrying out before.

2. The deductions referred to in the preceding paragraph shall be applied by applying the percentage proposed by the employer or professional to the Ministry of Finance of the Government of the Canary Islands, except where the latter establishes a different one in attention to the characteristics of the corresponding business or professional activities.

Such deductions shall be considered provisional and shall be subject to the regularisations provided for in Article 77 of this Regulation.

3. Employers or professionals may apply for the refund of quotas which are deductible under the provisions of this Article, in accordance with the provisions of Article 83 of this Regulation.

4. Employers who, pursuant to this Regulation, must be subject to the special arrangements of retail traders from the start of their business, may not make the deductions referred to in this Article in the relationship to the activities covered by the scheme.

5. Employers or professionals who have carried out the deductions referred to in this Article shall not be eligible for the special arrangements for agriculture and livestock farming for the activities in which they use the goods and services for which they the acquisition has borne or satisfied the quotas to be deducted until the end of the third calendar year of the supply of goods or services carried out in the course of the development of those activities.

The application of the provisions of the preceding paragraph will have the same effects as the waiver of the special regime.

6. For the purposes of this Article and Article 77 of this Regulation, the first year of the delivery of goods or services in the course of the development of business or professional activities shall be considered to be the first year during the the employer or professional commences the usual practice of such operations, provided that the commencement of such operations takes place before 1 July and, in another case, the following year. '

39. Article 77 shall be worded as follows:

" Article 77. Regularisation of the deductions of the quotas previously supported at the beginning of the delivery of goods or services corresponding to business or professional activities.

1. The provisional deductions referred to in Article 76 above shall be adjusted by applying the final percentage overall corresponding to the period of the first four calendar years for the delivery of goods or services of services carried out in the course of business or professional activities.

2. The final percentage referred to in the preceding number shall be determined in accordance with the provisions

this Article.

in Article 69 of this Regulation, taking into account the whole of the operations carried out during the period referred to in Article 76 (6) of this Regulation, as well as the amount of the grants to which the referred to in Article 69 (2), paragraph 2, as received during that period and before it. '

40. Article 78 shall be worded as follows:

" Article 78. Procedure for regularisation of deductions from the quotas previously supported at the beginning of the delivery of goods or services corresponding to business or professional activities.

The regularisation of the deductions referred to in Article 77 of this Regulation shall be carried out as follows:

1. Known as the percentage of deduction definitively applicable to the fees incurred or satisfied prior to the commencement of the delivery of goods or services corresponding to the activity business or professional, the amount of the deduction to be applied shall be determined in application of the said percentage.

2. This amount shall be deducted from the total sum of the provisional deductions made in accordance with Article 76 of this Regulation.

3. The difference, positive or negative, shall be the amount of the income or additional deduction to be made. "

41. Article 79 shall be worded as follows:

" Article 79. Regularisation of the corresponding contributions to investment goods previously supported at the beginning of the delivery of goods or services corresponding to business or professional activities.

1. The provisional deductions referred to in Article 76 of this Regulation corresponding to quotas supported or satisfied by the purchase or import of investment goods, once regularised in accordance with the provisions of the Articles 77 and 78, they shall be subject to the regularisation provided for in Article 72 of this Regulation during the years of the regularisation period which shall be the case.

2. For the purposes of the regularisations provided for in this Article, a deduction shall be deemed to have been made for the year in which the impact was incurred for the purposes of Article 74 (2) or Article 74 (2) of that Regulation. deduction definitively applicable pursuant to Article 77 (1) of that Regulation.

Where the investment goods referred to in this Article are the subject of delivery before the end of the regularisation period referred to in this Article, the rules of Article 75 of this Regulation shall apply, without prejudice to Articles 76, 77 and 78 of the same Regulation and in the earlier numbers of this Article. '

42. Article 82 is amended as follows:

" Article 82. Time limits for the correction of deductions.

The correction of deductions may be made within the maximum period of four years from the date of the right to deduct or, where appropriate, the date of completion of the event determining the variation in the amount of the to deduce.

However, in the case of errors in the settlement of the passed-on quotas which determine an increase in the quotas to be deducted, the correction may not be made after one year from the date of issue of the revised invoice or equivalent document. '

43. A new number 4 is added to Article 83, in the following terms:

" 4. They shall also be entitled to return the balance to their existing advantage at the end of each settlement period, subject to the quantitative rules and limits laid down in Article 84 of this Regulation, the taxable persons for whom carry out the non-production and semi-finished gold deliveries of gold referred to in Article 42.1.2. of this Regulation and the investment gold deliveries referred to in Article 125 bis.6 of this Regulation. '

44. Article 90 (1) is amended as follows:

" 1. The special schemes in the Indirect General Tax Canarian are as follows:

1. The simplified regime.

2. The special regime of used goods.

3. The special regime of art objects, antiques and collectibles.

4. The special regime of travel agencies.

5. The Special Regime of Agriculture and Livestock.

6. The special regime of retail traders.

7. The special regime applicable to operations with investment gold. "

45. Article 95 (2) is amended, which is worded as follows:

" 2. The amount of the fees to be paid as provided for in the preceding number 1 shall be increased by the fees payable for the operations referred to in Article 50 (1), second subparagraph of the Tax Act, and may be reduced in the amount of the shares supported or satisfied by the acquisition or import of the fixed assets for the development of the activity, considering the assets of the fixed assets as such.

However, the capital grants awarded to finance the purchase of certain goods and services, acquired by virtue of transactions which are subject to and not exempt from the tax, will exclusively minate the amount of the deduction of the quotas supported or satisfied by those operations to the extent that they have contributed to their financing. The deduction of deductions shall be carried out in the form established by the Government of the Canary Islands.

The provisions of the preceding paragraph shall not apply to the grants referred to in the third subparagraph of Article 69 (2) (2) of this Regulation. "

46. Article 97 is amended as follows:

" Article 97. Determination of the volume of operations.

1. For the purposes of this Regulation, the volume of transactions shall mean the total amount, excluding the Indirect Canarian General Tax itself and, where applicable, the surcharge of the special scheme of retail traders and the compensation to (a) a lump sum of the supplies of goods and services effected by the taxable person during the calendar year, including those exempt from the tax.

In the case of transmission of all or part of a business or professional estate, the volume of transactions to be computed by the acquiring taxable person will be the result of adding to the realized, if applicable, by this during the preceding calendar year, the volume of operations carried out during the same period by the transmission in relation to the part of its transmitted assets.

For these purposes, the whole of the assets which constitute one or more branches of the activity of the transferor in the terms laid down in Article 97 must be understood by a business or professional estate. of Law 43/1995, of 27 December, of the Tax on Societies.

2. Transactions shall be deemed to have been carried out on the occasion of or, where appropriate, the accrual of the Indirect Canarian General Tax.

3. For the determination of the volume of operations, the following shall not be taken into account:

1. The occasional deliveries of real estate.

2. The deliveries of qualified goods as investment in respect of the transmission, in accordance with the provisions of Article 40, numbers 8 and 9 of the Law.

3. The financial transactions referred to in Article 10 (1) (18) of the Tax Act, including those which do not qualify for exemption, as well as the exempt transactions relating to investment gold included in the Article 58 ter (3). of the same Law, where they are not customary for the business or professional activity of the taxable person. "

47. Article 102, number 2, is amended as follows:

" 2. The provisions of this Chapter shall not apply to the supply of the following goods:

1. The ones constructed, renewed or transformed by the taxable person himself or on his own.

2. ° The integrated ones totally or partially by natural or cultured pearls, stones or precious metals.

3. Those acquired from other taxable persons, except in cases where the supplies in respect of which the purchase was made were not subject to the tax or have been exempt from the tax, without the transfer of has originated the right to the deduction in favour of the transfer.

4. º Those imported directly by the taxable person.

5. The investment gold as defined in Article 125a (2) of the Regulation. "

48. Paragraph 1 of Article 104 (1) is amended as follows:

" 1. The special arrangements for travel agencies shall apply:

1. The operations carried out by travel agents when they act in their own name in respect of the travelers and use in the making of the trip goods delivered or services provided by other entrepreneurs or professionals.

For the purposes of this special scheme, accommodation or transport services provided jointly or separately and, where appropriate, with other services of an ancillary or complementary nature, shall be considered to be travel. "

49. Article 107 shall be worded as follows:

" Article 107. Exemptions.

Services provided by travel agencies shall be exempt from the tax when the supplies of goods or services, purchased for the benefit of the traveller and used for the purpose of the journey, are carried out outside the the Canary Islands.

In the event that the aforementioned supplies of goods or services are only partially carried out in the Canary Islands, only the part of the provision of services of the relevant agency shall be exempt. to those made outside the Canary Islands. "

50. Article 109 is amended as follows:

" Article 109. The basis Imposable.

The tax base will be the gross margin of the travel agency.

For these purposes, the gross margin of the agency is considered the difference between the total amount charged to the client, excluding the Indirect General Tax that taxes the transaction, and the amount of cash, taxes included, supplies of goods and services which, carried out by other employers or professionals, are acquired by the agency for use in carrying out the journey and are directly in the interests of the traveller.

For the purposes of the foregoing paragraph, they shall be deemed to have been acquired by the agency for use in carrying out the journey, inter alia, for the services provided by other travel agencies for that purpose, except the mediation services provided by the retail agencies, on behalf and on behalf of the wholesalers, in the sale of travel organised by the latter.

For the determination of the gross margin of the agency, the amounts or amounts corresponding to the transactions exempt from the tax pursuant to Article 107 of this Regulation, or those of the goods or services used for the making of such goods or services. '

51. Articles 114 and 115 are amended as follows:

" Article 114. Concept of agricultural, forestry or livestock farming.

For the purposes of this Chapter, agricultural, forestry and forestry holdings shall be considered.

or livestock farmers directly obtaining natural products, plants or animals from their crops or holdings for transmission to third parties, as well as to the ancillary services to those holdings referred to in this Article. Article.

In particular, the following shall be considered as agricultural, forestry or livestock holdings:

1. º. Those who carry out agricultural activities in general, including the cultivation of ornamental or medicinal plants, flowers, mushrooms, spices, seeds or plants, whatever the place of production of the products, in the case of greenhouses or nurseries.

2. The dedicated to forestry.

3. Animal husbandry, including poultry farming, beekeeping, cuniculture, sericulture and the breeding of species of blacklisted species, provided that it is linked to the exploitation of soil.

The special arrangements for agriculture and livestock farming shall not apply to the following activities

1. Sports or recreational activities of a kind.

2. The integrated and independent animal husbandry.

For these purposes, it is considered independent cattle raising as such in the Tax on Economic Activities, with reference to the whole of the livestock activity directly exploited by the taxable person.

3. The provision of services other than those provided for as accessories in Article 117 of this Regulation.

4. The cession of an agricultural, forestry or livestock holding in lease or in any other form that involves the transfer of ownership.

Article 115. Non-application assumptions.

The special scheme provided for in this Chapter shall not apply to agricultural, forestry or livestock holdings, in so far as the natural products obtained therein are used by the holder of the holding in any of the following purposes:

1. The transformation, manufacture or manufacture, directly or through third parties, for subsequent transmission.

In any case of transformation, any activity for which the exercise is required is presumed to be high in an item corresponding to industrial activities in the rates of the Tax on Economic Activities.

No transformation processes will be considered:

(a) acts of mere preservation of the goods, such as pasteurisation, refrigeration, freezing, drying, sorting, cleaning, packing or conditioning, peeling, decutting, splicing, disinfection or disinsation.

b) The simple production of agricultural raw materials that do not require the slaughter of livestock.

In order to determine the nature of the processing activities, no consideration will be given to the number of producers or the traditional or traditional nature of the operational mechanics of the activity.

2. Marketing, mixed with other products acquired from third parties, even if they are identical or similar in nature, except that the latter have as their object the mere conservation of those products.

3. The placing on the market, carried out on a continuous basis in fixed establishments located outside the place where the agricultural, forestry or livestock farming is located.

For these purposes, fixed establishments shall be considered to be those where the taxable person continues to carry out marketing activities for natural products obtained on his or her agricultural, forestry or cattle.

4. Marketing, carried out in establishments where the taxable person also carries out other business or professional activities other than the agricultural, forestry or livestock holding. "

52. Article 117, number 2, is amended as follows:

" 2. The provisions of the preceding number shall not apply if the amount of the set of ancillary services provided during the preceding year has exceeded 20 per 100 of the total volume of operations of the agricultural holdings, foresters or main livestock farming to which the special rules laid down in this Chapter apply. '

53. The following wording is given to Article 125 (3):

" 3. The types of surcharge shall be as follows:

1. For imports of goods subject to the rate of 2 per 100 in the Indirect General Tax Canarian, 0.20 per 100.

2. For imports of goods subject to the rate of 5 per 100 in the Indirect General Tax Canarian, 0.5 per 100.

3. For imports of goods subject to the type of 9 per 100 in the Indirect General Tax Canarian, 0.9 per 100.

4. For imports of goods subject to the type of 13 per 100 in the Indirect General Tax Canarian, 1.3 per 100.

5. For imports of black tobacco products 2 per 100 and for imports of blond tobacco and tobacco substitutes the 3.5 per 100. "

54. A new Chapter VIII is added to Title III, with the following wording:

" CHAPTER VIII Special arrangements applicable to operations with investment gold Article 125a. Special arrangements applicable to operations with investment gold.

1. The system governed by this Article shall be compulsory, without prejudice to the right of waiver provided for in Article 4 of this Article.

2. For the purposes of this Regulation, investment gold shall be considered as:

1. The ingots or gold sheets of law equal to or greater than 995 thousandths and the weight of which is in accordance with the provisions of Annex III of the Tax Law.

2. Gold Coins that meet the following requirements:

a) That are of law equal to or greater than 900 thousandths.

b) That have been minted after the year 1800.

c) That they are or have been legal tender in their country of origin.

(d) which are normally marketed for a price not exceeding 80 per 100 to the market value of the gold contained therein.

In any event, the above requirements shall be understood to be in relation to the gold coins included in the relationship which, for that purpose, shall be published in the Official Journal of the European Communities before 1 January. December of each year. Such coins shall be deemed to satisfy the requirements to be considered as investment gold during the calendar year following the year in which the said relationship is published or in subsequent years until the date of the publication of the published previously.

3. The following operations shall be exempt from the tax:

1. º The deliveries and imports of investment gold. The following shall be included in the scope of the exemption, in respect of deliveries, loans and financial swap operations, as well as operations arising from future or forward-term contracts, provided that they are in all cases the subject of investment and provided that they involve the transmission of the power of disposal on that gold.

The provisions of the preceding paragraph shall not apply to the provision of services which are subject to investment gold without prejudice to the provisions of paragraph 2.o of this number.

2. The mediation services in the transactions exempt in accordance with paragraph 1 above, borrowed on behalf and on behalf of others.

4. The waiver of the regulated exemption in the preceding number 3 may be met with the following requirements:

1. The exemption from the tax applicable to investment gold deliveries, as referred to in paragraph 1 (1) or (3) of this Article, may be the subject of a waiver by the transferor, in the form and with the requirements to be set out in Article 125c of this Regulation, provided that the following conditions are met:

(a) That the transmitent is used for the purpose of carrying out activities in the production of gold of investment or of processing of gold other than investment in investment gold and provided that the delivery is for gold investment resulting from the above mentioned activities.

(b) The acquirer is an employer or professional acting in the course of his business or professional activities.

2. The exemption from the tax applicable to mediation services, as referred to in paragraph 2 or 3 of this Article, may be waived, provided that the addressee of the mediation service is an employer. or a professional acting in the course of his business or professional activities, in the form and with the requirements laid down in Article 125c of this Regulation, and provided that the waiver applicable to the supply is waived of the investment gold referred to in the mediation service.

5. The right to deduct the supported fees in relation to the investment gold shall be governed by the following rules:

1. The Indirect General Tax quotas referred to in Article 60 of this Regulation shall not be deductible in so far as the goods or services for which they are acquired or imported are borne or satisfied quotas are used in the performance of the exempt investment gold deliveries, in accordance with the provisions of Article 3 of this Article.

2. For the exception of the provisions of the previous rule, the realization of the investment gold deliveries referred to in this rule will generate the right to deduct the following quotas:

(a) Those supported by the acquisition of that gold when the supplier of the gold has made the waiver of the exemption provided for in paragraph 1 or paragraph 1 of this Article.

b) Those supported or satisfied by the acquisition or import of that gold, when at the time of the acquisition or import did not meet the requirements to be considered as investment gold, having been transformed into gold investment by the person making the delivery or on his behalf.

c) Those supported by the services that consist of the change of shape, weight or purity of that gold.

3. In addition, by way of derogation from the provisions of Rule 1 (a) above, the realisation of investment gold deliveries exempt from the tax by employers or professionals who have produced it directly or obtained by transformation shall generate the right to deduct the tax quotas which are borne or satisfied by the purchase or import of goods and services linked to such production or processing.

6. The taxable person shall be liable for the tax corresponding to the supply of investment gold which is taxed as a result of the waiver of the exemption referred to in Article 4 (4), the employer or professional for whom the taxed operation.

Article 125 ter. Concept of investment gold.

For the purposes of Annex III of the Tax Act, the following weights shall be deemed to be in the form accepted by the bullion markets:

For the ingots of 12.5 kilograms, those whose contents in pure gold range from 350 to 430 ounces.

For the remaining pesos mentioned, the pieces whose real weights do not differ from those in more than 2 percent.

Article 125c. Waiver of exemption.

1. The waiver of the exemption provided for in Article 125a (4) of this Regulation shall be applied for each operation carried out by the transferor. Such waiver shall be communicated in writing to the acquirer on a prior or simultaneous basis to the delivery of the investment gold.

Also, when the delivery is taxed by the tax, the transferor must communicate in writing to the acquirer that the condition of taxable person of the tax falls on the latter, according to the established number 6 of Article 125a of this Regulation.

2. The waiver of the exemption provided for in Article 125a (4) of this Regulation shall be applied for each operation carried out by the service provider, which must be in possession of a document signed by the recipient of the service. in which it states that in the delivery of gold to which the service of mediation refers has been effected the waiver of the Indirect General Tax Canarian. "

Finally, the text of Article 14 (3) of Royal Decree 2538/1994, which contains the conditions governing the exemption from the provision of services consisting of works on goods, is amended. acquired or imported in order to be the subject of such work prior to export, in order to clarify its content, simplify its application and adapt it to the terminology of the Community customs legislation.

Single end disposition. Entry into force.

This Royal Decree will enter into force on the day of its publication in the "Official State Gazette".

Given in Madrid to October 26, 2001.

JOHN CARLOS R.

The Minister of Finance,

CRISTOBAL MONTORO ROMERO