Law 20/1991 of 7 June, amending the fiscal aspects of the Fiscal Economic Regime of the Canary Islands ("Official State Gazette" of 8 June), regulates the new taxes of application on these islands:

the Indirect Canarian General Tax and the Arbitrio on Production and Import in the Canary Islands.

According to its final provision, the aforementioned law would enter into force on 1 January 1992, except as regards the Arbitrio on Production and Import in the Canary Islands, which came into force on 1 July 1991.

Consequently, Royal Decree 1081/1991, of 5 July, issued the rules for the development of the Arbitrio on Production and Import in the Canary Islands, pending those corresponding to the Indirect General Tax. Canary, whose entry into force was scheduled for the date indicated above.

However, subsequently, Royal Decree-Law 5/1991 of 20 December delayed the beginning of the application of the Indirect General Tax to 1 January 1993. The Royal Decree-Law was subsequently repealed by Law 14/1992 of 5 June, which reproduced its content in the present Royal Decree.

Corresponding now, therefore, to dictate the rules for the development of Law 20/1991, of June 7, regarding the Indirect General Tax Canarian, although it has seemed appropriate, for reasons of simplification and security In the case of law, the provisions relating to both taxes are to be recast in a single regulatory text, repealing Royal Decree 1081/1991 of 5 July.

In its virtue, on the proposal of the Ministry of Economy and Finance, completed the process of report of the Autonomous Community of the Canary Islands, in accordance with the opinion of the Council of State and after deliberation of the Council of Ministers in its Meeting of the day 4 December 1992,

DISPONGO:

Book I

General Indirect Canary Tax

Preliminary Title

Nature and space scope

Article 1. Nature of the Tax.

The Indirect General Tax Canary is a state tax of indirect nature that taxes, in the form and conditions provided for in the Law and its provisions of development, the deliveries of goods and services made by businessmen and professionals, as well as imports of goods, whatever the condition of the importer.

Article 2. Spatial space.

1. The spatial scope of application of the tax is the territory of all the islands that make up the Canary Islands.

For the purposes of this tax, the spatial scope referred to in the preceding paragraph also includes the territorial sea up to the limit of twelve nautical miles defined in the third article of Law 10/1977, of 4 January, and the air space for that area.

2. The provisions of the preceding number shall be without prejudice to the provisions of the Treaties and international conventions forming part of the Spanish internal order.

Title I

Taxation of Subject Operations

Chapter I

Delimitation of the taxable fact

Article 3. Taxable fact.

1. The supply of goods and services by employers or professionals for consideration, on a regular or occasional basis, in the development of their business or professional activity, is subject to the tax. they are in favour of the members themselves, associates, members or members of the entities that carry them out.

2. In any case, they shall be understood as being carried out in the course of business or professional activity:

(a) The supply of goods and services by commercial companies.

(b) transmissions or transfers of use to third parties of all or part of any goods or rights that integrate the business or professional assets of the taxable persons, including those made on the occasion of the cessation of the exercise of the economic activities which determine the subject of the tax.

3. Imports of goods are also subject to the tax, irrespective of the purpose for which they are intended or the condition of the importer.

4. The imposition of the tax is based on the independence of the aims or results pursued in the business or professional activity or in each operation in particular.

5. Transactions subject to this tax will not be subject to the concept of the Tax on Proprietary Transmissions and Documented Legal Acts.

The supply and lease of real estate that are exempt from the Indirect Canarian General Tax are excepted from the provisions of the preceding paragraph.

Article 4. Concept of business or professional activities.

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.

Article 5. Concept of employers or professionals.

1. For the purposes of this tax, employers or professionals shall be deemed to be:

1. Persons or entities who habitually carry out business or professional activities.

However, they will not have the consideration of businessmen or professionals who perform exclusively deliveries of goods and services free of charge.

2. The commercial companies, in any case.

2. The habituality may be credited by any of the means of proof admitted in law.

The habituality will be assumed:

(a) In the cases referred to in Article 3. of the Trade Code.

(b) Where the supply of goods and services subject to the tax is required to contribute to the tax on economic activities.

3. Employers or professionals shall, in any event, be considered to carry out the following operations:

1. The execution of one or more supplies of goods or services that assume the exploitation of a body or incorporation in order to obtain income continued in time.

In particular, they will have such consideration the landlord of goods.

2. The urbanization of land and the promotion, construction or rehabilitation of buildings for sale, award or assignment for any title, even if they are performed occasionally.

Article 6. Concept of buildings.

1. For the purposes of this tax, buildings shall be regarded as buildings, permanently attached to the ground or other buildings, carried out both on the ground and in the subsoil, which are capable of being used autonomously and independently.

2. In particular, they shall have the consideration of buildings the constructions which are then related, provided that they are attached to a building in a fixed manner, so that they cannot be separated from it without the matter or the deterioration of the object:

1. The buildings, being considered as such all permanent, separate and independent construction, conceived to be used as housing or to serve the development of an economic activity.

2. Uninhabitable industrial facilities such as dikes, tanks or loaders.

3. The platforms for hydrocarbon exploration and exploitation.

4. Ports, airports and markets.

5. Recreational and sports facilities that are not ancillary to other buildings.

6. Roads, navigation channels, railway lines, roads, motorways and other land-based communication routes, as well as bridges or viaducts and tunnels relating to them.

7. Fixed facilities for cable transport.

3. They will not have the consideration of buildings:

1. The construction of land and, in particular, the supply and evacuation of water, electricity supply, gas distribution networks, telephone facilities, access, streets and sidewalks.

2. The ancillary constructions of agricultural holdings which are related to the nature and destination of the farm, even if the owner of the farm, his family members or the persons with whom they work have their dwelling.

3. The objects of use and ornamentation, such as machines, instruments and utensils and other buildings per destination referred to in Article 344, numbers 4 and 5, of the Civil Code.

4. Mines, quarries or scorials, oil or gas wells or other natural products extraction sites.

Article 7. Concept of delivery of goods.

1. The transfer of the power of disposal on personal property is understood by the supply of goods.

For these purposes, the gas, the heat, the cold, the electrical energy and the other energy modes are considered to be bodily goods.

2. They have the consideration of deliveries of goods:

1. The constitution, extension of its content or the transfer of real rights of enjoyment or enjoyment of real estate.

2. The transfer of the property, the use or the enjoyment of immovable property by the transfer of securities which attribute those rights to the property.

3. The transfer of the power of disposal on goods by means of the transfer of securities representing the goods.

4. The execution of the work in which the cost of the materials provided by the employer exceeds 20 per 100 of the tax base. However, the execution of works which are carried out by the owner of the work or assembled by the owner of the work shall be considered, in any case, as supplies of goods.

5. Non-cash contributions made by taxable persons from the tax of assets of their business or professional assets to companies or communities of goods and to the awards of this nature in the event of liquidation or total dissolution or partial of those, without prejudice to the taxation that proceeds in accordance with the regulatory norms of the concepts "Documented Legal Acts" and of the Tax on Inheritance Transmissions and Legal Acts Documented.

6. Transfers of goods by virtue of a rule or an administrative or judicial decision, including compulsory expropriation.

7. The disposals of goods under contracts for sale in instalments with a reserve of domain agreement.

8. The disposals of goods under lease-sale and assimilated contracts.

For the purposes of the foregoing paragraph, leases with an option to purchase from the time the lessee undertakes to exercise the option of purchase and, in general, the leases shall be treated as the lease-sale. property leases with property transfer clause, binding on both parties.

9. Transfers of goods between the principal and the commission acting on his own behalf, carried out on the basis of contracts of commission of sale or commission of purchase.

Article 8. Concept of provision of services.

1. For the purposes of this tax, the provision of services shall mean any operation subject to it which does not have the consideration of the supply of goods in accordance with the provisions of the preceding article.

They do not have the consideration of services services imports of goods.

2. In particular, they are considered to be services:

1. The independent exercise of a profession, art or craft.

2. The leases of goods, industry or business, companies or commercial establishments, with or without option of purchase.

3. The disposals of use or enjoyment of movable property.

4. The disposals or concessions of copyrights, licenses, patents, trademarks and other intellectual and industrial property rights.

5. The obligations to do and not to make and the abstentions stipulated in contracts of sale exclusively or derived from agreements of distribution of goods in delimited territorial areas.

6. The execution of works which do not have the consideration of supplies of goods, in accordance with the provisions of the previous article.

7. The transfers of business premises.

8. Transport.

9. Hospitality, restaurant or camping services and sales of beverages or food for immediate consumption in the same place.

10. Insurance, reinsurance and capitalization operations.

11. The benefits of hospitalization.

12. Loans and loans.

13. The right to use sports or recreational facilities.

14. The holding of fairs and exhibitions.

15. Mediation operations and agency or commission operations when the agent or agent acts on behalf of others. When acting in his own name and in the provision of services, he shall be understood to have received and provided the corresponding services himself.

Article 9. Concept of the import of goods.

1. For the purposes of this tax, import shall be defined as the definitive or temporary entry of goods into the Canary Islands, originating in the Peninsula, Balearic Islands, Ceuta, Melilla, any other Member State of the European Union or third countries, whatever the purpose for which they are intended or the condition of the importer.

These territories also comprise their respective air spaces and jurisdictional waters.

The entry of goods shall be deemed to be produced at the time the importer requests the importation provided that the Canary Tax Administration admits such an application. However, in the case of a warning device which is intended to be used or consumed on board the means of transport, the entry shall take place at the time when those means of transport are used or consumed on board. cross the limits of the territory of application of the tax.

2. Without prejudice to the provisions of the preceding number 1, import shall also be considered:

1. Authorization for consumption in the Canary Islands of goods which are subject to regulations in the arrangements for temporary importation, transit, inward processing in the system of suspension of deposit, as well as in zones and warehouses francs.

The authorisation for consumption shall be granted at the request of the data subject and subject to compliance with the requirements laid down for this in the regulatory legislation of each of the above schemes.

The taxable amount of goods shall also be produced in cases where the requirements laid down for the granting of the special schemes described in paragraph 1 are not met.

2. The disaffection of the vessels and, where appropriate, the objects incorporated or used on board the vessels, for the purposes referred to in Article 19 (2) and (3) of this Regulation, where the importation of the said vessels or objects into the the territory referred to in this Article would have benefited from the exemption from the tax.

3. The disaffection of the aircraft and, where appropriate, of the objects incorporated or used on board the aircraft, of the companies which are essentially engaged in international air navigation when the entry of those aircraft or objects into the territory referred to in this Article would have benefited from the exemption from the tax.

4. The change in the conditions under which the exemption from the tax on the supply or conversion of ships, aircraft and objects incorporated or used for the operation of such means of transport would have been applied transport.

5. Acquisitions made in the Canary Islands of goods the prior delivery or import of which had benefited from the exemption from the tax pursuant to Article 15 (8), (9) and (10) and Articles 32 and 33 of this Regulation Regulation.

However, the provisions of the foregoing paragraph shall not apply where the acquirer immediately and definitively exports such goods or sends them in the same way to the Balearic Islands, Ceuta, Melilla or other States. members of the C.E.E.

Exports and shipments referred to in the preceding paragraph shall be made in accordance with Article 14 (2) of this Regulation.

3. The disaffections of vessels and aircraft, with the objects incorporated in these means of transport, as referred to in paragraph 2 above, paragraphs 2. and 3., as well as the change in the conditions relating to the vessels, aircraft and the objects incorporated therein, as referred to in paragraph 4. of the same number, shall be understood to be produced at the end of the period of two consecutive calendar years, in the course of which, taken as a whole, the circumstances of the respective exemptions were no longer met.

For the purposes of the preceding paragraph, the year in which the corresponding imports, deliveries, constructions or transformations are carried out shall be considered as a complete calendar year whichever is the date. (a) to carry out such operations

Disaffections of objects incorporated in a ship or aircraft whose imports, deliveries, constructions or transformations have been exempted, by incorporation into other vessels or aircraft for which the The following shall be construed as being produced at the time they are carried out.

4. The provisions of the preceding paragraph 2, paragraphs 2. 3. and 4., shall not apply after 15 years after the import, supply, construction or free processing has been carried out.

Article 10. Transactions not subject.

Not subject to tax:

1. The following transfers of goods and rights:

(a) the transfer of the entire business or professional assets of the taxable person, carried out in favour of a single acquirer, where the latter continues to carry out the same business or professional activities as Transmit.

(b) the transfer of the entire business assets of the taxable person or of the property assets to one or more of the autonomous branches of the business or professional activity of the transferor, by virtue of the operations referred to in Article 1. of Law No 29/1991 of 16 December 1991 adapting certain concepts of taxation to the Directives and Regulations of the European Communities, provided that the operations are entitled to the tax system governed by the Title 1 of the (a) the law and the fact that it is not possible to distort the normal functioning of the legislation in the case of non-taxation of such transmission.

For the purposes set out in this point, the activity branch shall be defined as defined in Article 2 (4). of the Law cited in the previous paragraph.

(c) Transmission of or part of the business or professional assets of the taxable person in favour of those acquirers who continue to pursue the same business activities or professionals of the transmission.

In any event, changes in the affectation of goods or rights that are disaffected by those business or professional activities that determined their non-attachment to the tax will be subject to the tax.

2. The deliveries of money for consideration or payment.

3. Services provided by natural persons under a dependency arising from employment or administrative relations, as well as those provided to worker cooperatives associated with the partners of the same and those provided to other cooperatives by its working partners.

4. Transfers of goods or rights to the business or professional assets of the taxable person to his or her personal assets or to his private consumption.

5. The application, in whole or in part, to the particular use of the taxable person of goods affected by his business or professional activities.

6. The change in the affectation of personal property or of real rights of enjoyment or enjoyment of immovable property from one sector to another of the business or professional activity of the taxable person.

7. The affectation or, where appropriate, the change of affectation of goods constructed, extracted, processed, acquired or imported in the exercise of a business or professional activity of the taxable person for use in his business as goods of investment.

8. The transfer of the power of disposal on personal property or the transfer of real rights of enjoyment or enjoyment on immovable property which comprises the business or professional assets of the taxable person made free of charge, except in the case of (a) the number of cases referred to in Article 50 (3) of this Regulation.

9. The supply of goods and services provided directly by the State, the entities in which it is organized territorially and its autonomous bodies, when carried out by way of consideration of a tax nature.

The provisions of the preceding paragraph shall not apply where the Entes act by means of private enterprise or joint venture or, in general, of commercial enterprises.

However, they are subject, in any case, to the operations they perform in the development of the following activities:

a) Telecommunications.

b) Distribution of water, gas, electricity and thermal energy.

c) Transports of goods and persons.

d) Provision of port and airport services, except where they correspond to transport activities between islands in the Canary Islands.

e) Deliveries of products obtained, manufactured or processed by themselves.

(f) The intervention on agricultural products is directed to the regulation of the market for these products.

g) Exploitation of trade fairs and exhibitions.

h) Store and deposit.

i) The own commercial advertising offices and travel agencies.

j) Exploitation of canteens and canteens, cooperatives, economates and similar establishments.

k) Enseance and feeding, transport and ancillary accommodation of that.

l) Commercial or commercial of public radio and television.

m) The slaughterhouse.

10. The establishment of concessions and administrative authorisations, except those for the assignment of the right to use buildings or facilities at ports and airports.

Chapter II

Exemptions

Article 11. Exemptions in internal transactions.

1. They are exempt from this tax:

1. The provision of services and the supply of ancillary goods to the services carried out by the postal public services.

Postal public services will be considered for these purposes to be provided directly by the State, the entities in which it is organized territorially or its autonomous agencies.

The exemption does not extend to telecommunications or passenger transport.

2. The provision of inpatient or healthcare services and other services directly related to the services carried out by entities governed by public law or by private entities or establishments under authorised prices.

For the purposes of the foregoing paragraph, the prices whose alteration is subject to prior authorization or communication to any organ of the Administration shall be deemed to be authorized.

To be considered directly related to the hospitalization and health care services, the services of food, lodging, operating room, supply of medicines and sanitary material and other analogues provided by clinics, laboratories, sanatoriums and other inpatient and healthcare facilities.

The exemption does not extend to the following operations:

(a) Deliveries of medicinal products to be consumed outside the establishments mentioned in the preceding paragraph.

(b) Food, accommodation and restaurant services provided to persons other than the recipients of the inpatient and healthcare services or to the company's own dependent staff.

c) Veterinary services.

3. Assistance to natural persons in the exercise of medical and health professions defined as such by the legal system, irrespective of the person to whom the service is provided, even if it is carried out in hospital and health care facilities.

The exemption extends to medical, surgical and health care services related to the diagnosis, prevention and treatment of diseases, including clinical analysis and radiological scans.

4. Deliveries of blood, blood plasma and other fluids, tissues and other elements of the human body for medical or research purposes or for processing for the same purposes.

5. The services provided in the field of their respective professions by stomatologists, dental practitioners and dental prosthetics, as well as the delivery, repair and placement of dental prostheses and maxillary orthopaedic performed by them.

6. Services provided directly to their members by unions, groups or entities formed by natural or legal persons who are essentially an activity exempt or not subject to the tax, where the following conditions are met:

(a) that such services are used directly and exclusively in such activity and are necessary for the exercise thereof.

(b) Members shall be limited to reimbursing the share corresponding to them in the expenditure made in common.

c) That the right of the taxable persons to the enjoyment of the exemption in the form provided for in the number 2 of this article be recognized in advance.

These effects shall be understood to mean that members of an entity essentially exercise an activity exempt or not subject to tax when the total annual volume of transactions actually taxed by the tax does not exceed 10%. per 100 of the total of the realised.

The exemption does not reach the services provided by the commercial companies.

7. The supply of goods and services which, for the fulfilment of their specific purposes, carries out Social Security, either directly or through their managing or collaborating entities.

This exemption shall apply only in cases where those who carry out such operations do not receive any consideration from the acquirers of the goods or the recipients of the services other than the contributions (a) Social Security.

The exemption does not extend:

(a) deliveries of medicinal products and medical equipment carried out on behalf of the Social Security.

(b) To the supply of goods and services to the Social Security carried out by other persons or entities.

8. The provision of social assistance services referred to below by entities governed by public law or by private entities or establishments of a social nature:

a) Protection of children and youth.

b) Third age assistance.

c) Assistance to physically or mentally handicapped persons.

d) Assistance to ethnic minorities.

e) Assistance to refugees and asylum seekers.

f) Assistance to passersby.

g) Assistance women with unshared family burdens.

h) Community and family social action.

i) Prevention of crime and social reintegration.

j) Assistance to alcoholics and drug addicts.

k) Assistance to ex-inmates.

Child and youth protection activities and youth and youth training, assistance to infants, custody and care for children under six years of age will be considered. of courses, excursions, camps or trips for children and youth and other similar ones provided for persons under 25 years of age.

The exemption includes the provision of the aforementioned social services, as well as the supply of food, accommodation or transport accessories of the above provided directly by those establishments or entities, with means own or foreign.

The exemption does not extend to the food, accommodation and transport services provided to or on behalf of those persons or entities by other entrepreneurs.

9. The provision of services relating to the education of children or young people, to education at all levels and degrees of the education system, to language schools and to vocational training or retraining, carried out by institutions teachers, as well as the food, accommodation or transport services accessories to the former provided directly by the aforementioned centres, with their own or other means.

For the purposes of the preceding paragraph, they are considered to be teaching centers: those included in the scope of the Organic Laws 11/1983, of 25 August, of the University Reform, and 8/1985, of July 3, Regulation of the Law on Education.

The exemption does not extend to food, accommodation or transport services provided by other entrepreneurs to educational establishments or on their own.

10. Classes, in particular, on subjects included in the curricula of any of the levels and degrees of the educational system, taught outside the educational institutions and independently of them.

11. The disposals of personnel performed in the performance of their purposes, by legally recognized religious institutions, for the development of the following activities:

a) Hospitalization, healthcare, and others directly related to them.

(b) Social assistance referred to in paragraph 8. previous.

c) Education, teaching, training and retraining.

12. The provision of services and the supply of ancillary goods directly to their members by legally recognised bodies or entities which do not have a lucrative purpose, the objectives of which are exclusively of a nature political, trade-union, religious, patriotic, philanthropic or civic, carried out for the attainment of their specific purposes, provided that, moreover, they do not receive from the beneficiaries of such operations any other than the contributions fixed in its statutes.

The professional associations, official chambers, employers ' organisations and federations which bring together the bodies or entities referred to in paragraph 12 shall be understood as being included in the preceding paragraph.

The exemption shall not apply to the supply of goods and services provided for third parties or by way of consideration other than the contributions laid down in its statutes.

The enjoyment of this exemption will require prior recognition of the right of taxable persons in accordance with the provisions of this Article.

13. Services provided by entities governed by public law, sports federations or private sports entities or establishments of a social nature to those who practise sport or physical education, whatever the person or entity to whose the provision is made, provided that such services are directly related to such practices and the quotas of those services do not exceed the amounts shown below:

Entry or admission fees: 200,000 pesetas.

Periodic quotas: 3,000 pesetas per month.

These amounts may be modified in the General Budget Law of the State of each year.

The exemption does not extend to sports shows.

14. The provision of services listed below by entities governed by public law or by private cultural entities or establishments of a social nature:

a) The libraries, files, and documentation centers themselves.

b) Visits to museums, art galleries, art galleries, monuments, historical sites, botanical gardens and zoos.

c) The theatrical, musical, choreographic, audiovisual and cinematographic representations.

d) The organization of exhibitions and conferences.

15. The transport of sick or injured people in ambulances or vehicles specially adapted for this purpose.

16. Insurance, reinsurance and capitalisation operations, as well as the provision of services relating to them, carried out by insurance and reinsurance agents and brokers.

Within the insurance operations, the forecast modes are understood.

17. The deliveries of timbrated effects of legal tender in Spain in amount not exceeding their face value.

The exemption does not extend to the services of the issuing of timeless effects borrowed in the name and on behalf of third parties.

18. The following financial operations, whatever the condition of the borrower and how they are instructed, including through financial effects:

(a) Cash deposits in their various forms, including deposits in current accounts and savings accounts, other transactions related to them, including collection or payment services provided by the the depositary in favour of the depositor and the transfer of cash deposits, including by means of certificates of deposit or certificates which fulfil the same function.

The exemption does not extend to credit collection management services, exchange letters, receipts, and other documents.

Operations relating to payment or credit cards or credit or checking account transactions shall not be considered as recovery management.

b) The granting of loans and loans in money, whatever the condition of the borrower and the way in which they are instructed, even by financial effects or titles that fulfill the same function.

(c) Other operations, including management, relating to loans or loans made by those who have granted them in whole or in part.

The exemption does not cover loan and credit management operations performed by persons other than those who granted them or the services provided to the other lenders in the syndicated loans.

Financial swap operations will be exempt in any case.

d) The transmission of loans or loans.

e) The provision of guarantees, guarantees, guarantees and other real or personal guarantees, as well as the issuance, notice, confirmation and other transactions relating to the documentary credits.

The exemption extends to the management of loan guarantees or loans made by those who granted the loans or guaranteed loans or the guarantees themselves.

f) The transfer of guarantees.

g) Transactions relating to transfers, money orders, cheques, booksellers, notes, exchange letters, payment or credit cards and other payment orders, including interbank clearing of cheques and heels.

Change letter collection service or other documents received in collection management are not included in the exemption.

The transmission of the payment effects and orders referred to in point (g) is exempt, including the transmission of discounted effects.

Not included in the exemption is the cession of effects in commission of collection.

(h) Purchase, sale or exchange transactions and similar services which have as their object foreign currency, banknotes and coins which are legal means of payment, with the exception of coins and collection notes.

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 and the parts of the silver, gold or other metal.

(i) Services and operations, relating to shares, shares in companies, bonds and other securities securities, not mentioned in the preceding letters of this paragraph 18., with the exception of:

a ') The representative of merchandise.

b ') Titles whose possession is in fact or in fact the property, use or exclusive enjoyment of immovable property.

This nature does not have the shares or shares in companies or other entities.

(j) the transmission of securities securities referred to in point (i) above, including because of their issuance or redemption.

(k) Negotiation and mediation, whether or not the public faith has appeared, in the exempt transactions described in the preceding letters of this paragraph 18.

The exemption extends to mediation services in the transmission or placing on the market of deposits, cash loans or securities issued on behalf of their issuing entities or the holders of the same, even in cases where the insurance of such operations is concerned.

l) The management of investment funds, mortgage, mortgage, pension, investment in money market assets, mortgage market regulation, and retirement collectives, which are established in accordance with their specific legislation.

m) The intervention services in the operations referred to in the preceding paragraph 18., provided by registered and notarized trade corridors.

19. The lotteries, bets and games organized by the National Agency of Lotteries and Betting of the State and the National Organization of the Blind, and, where appropriate, the corresponding organs of the Autonomous Community of the Canary Islands, as well as the activities of which Unauthorised authorisation or performance constitute the taxable facts of the rate on raffles, tomballs, bets and random combinations or the rate that the games of luck, send or chance.

The exemption does not extend to management services and other operations of an ancillary or complementary nature to those included in the previous paragraph that do not constitute the taxable fact of the aforementioned fees.

20. The supply of land which does not have the status of buildables, including buildings of any kind on them, which are essential for the development of an agricultural holding.

To this effect, the land classified as solar by the Law of Soil and other urban norms, as well as the other land suitable for the construction because it has been authorized by the corresponding administrative license.

The exemption does not extend to the deliveries of the following areas that do not have the condition of buildables:

(a) The urbanized or urbanized land, carried out by the developer of the urbanization.

(b) Land in which buildings are located in the construction or finished building when they are jointly transmitted with the same and the deliveries of such buildings are subject to and not exempt from the tax.

However, the supply of non-buildable land in which buildings of an agricultural character are essential for their exploitation and those of the same type of land where they exist are exempt. paralyzed, ruinous or derruid constructions.

21. The supply of land which is carried out as a result of the initial contribution to the Compensation Boards by the owners of land covered by urban planning activities and the allocation of land to the land. owners cited by the Juntas themselves in proportion to their contributions.

The exemption extends to the deliveries of land to which the repair under the conditions mentioned in the previous paragraph.

This exemption will be conditional on compliance with the requirements of the urban legislation.

22. The second and subsequent deliveries of buildings, including the land in which they are located, when they are completed after completion of their construction or rehabilitation.

For the purposes of this Regulation, the land on which the buildings are located shall comprise those in which the works of urbanisation have been carried out.

However, in the case of single-family dwellings, the urbanized land of an accessory may not exceed 5,000 square meters.

The exemption does not extend:

(a) To the deliveries of buildings made in the exercise of the option of purchase inherent in a contract of financial lease by entities authorized to carry out such operations according to Law 26/1988, of July 29.

For the purposes of the preceding paragraph, the commitment to exercise the option to buy in front of the lessor shall be treated as the exercise of the purchase option.

b) To the deliveries of buildings for immediate rehabilitation by the acquirer.

For the purposes of the preceding paragraph, the rehabilitation of buildings shall be considered to be the rehabilitation of buildings by means of the consolidation and treatment of structures, facades or (a) the cost of the rehabilitation operations exceeds 25 per 100 of the taxable amount of such deliveries.

For the purposes of this Regulation, the first transmission shall be considered to be carried out by the sponsor, provided that the building or rehabilitation is completed and before the uninterrupted use by the sponsor. a period of two years by its owner or by holders of actual rights of enjoyment or enjoyment or of the assignment of the building for the same period under lease contracts without an option to purchase, provided that the acquirer is also a person other than the person who used the building during the period. The periods of use of buildings by the acquirers of the same in the cases of resolution of the operations in respect of which the corresponding transmissions were made shall not be taken into account.

23. Leases which have the consideration of services in accordance with the provisions of Article 8. of this Regulation, and having as their object the following goods:

(a) Terrain, including agricultural structures used for the exploitation of a rustic farm.

(b) Buildings or parts thereof intended exclusively for housing, including garages and ancillary attachments to the latter and the furniture leased jointly with them.

The exemption does not include:

(a) Land leases for vehicle parking.

(b) Land leases for the deposit or storage of goods, goods or products.

c) Land leases for exhibitions or for advertising.

(d) Leases with an option to purchase land or houses whose transmission is subject to and not exempt from the tax.

e) Leases of apartments or furnished when the lessor is required to provide the complementary services of the hotel industry, such as restaurant, cleaning, laundry or laundry other analogues.

24. The supply of goods which have been used by the transfer exclusively in the conduct of transactions exempt from the tax pursuant to this Article, provided that the taxable person has not been granted the right to make the total or partial deduction of the tax incurred in the acquisition or import of such goods or components thereof.

For the purposes of the foregoing paragraph, the taxable person shall be deemed not to have been credited with the right to make the partial deduction of the fees incurred when he has used the goods or services acquired exclusively in the conduct of exempt transactions which do not give rise to the right to deduct, even if the pro rata rule has been applied.

25. The supply of goods for which the acquisition or import or the component components thereof has not determined the right to deduct in favour of the transmission of goods not directly related to the exercise of their business business or professional or to be found in any of the cases of exclusion from the right to deduct provided for in the Law and in this Regulation.

26. The deliveries of paintings or drawings made by hand and the sculptures, prints, prints and lithographs, provided that in all cases they are original works and are carried out by the artists authors of the same or by third parties acting in name and on behalf of those.

The frames of the paintings or drawings, prints, prints and lithographs shall only be included in the exemption when their nature and value are in relation to them.

For the purposes of this Regulation they will be considered:

a) Paintings and drawings made by hand, made directly by the artist using exclusively manual procedures.

They will not have this consideration:

a ') Copies of paintings or drawings, even if they are authenticated by the artist.

b ') Works performed on a stroke or drawing obtained by ordinary engraving or printing procedures.

c ') Those carried out by mechanical means which are intended to supply human intervention.

d') The drawings, drawings of dressings or jewels, the painted fabrics for decoration and, in general, the industrial drawings.

e ') Ceramic articles, mosaics and other hand-decorated objects.

b) Original cultures, the ones executed by the artist and the first copy obtained from the mold taken from them.

They will not have this consideration:

a ') The moulds, even if they are built or designed by sculptors.

b ') Works made by mechanical, photomechanical or chemical means.

c ') Series reproductions.

d') Craft objects and typical items of a commercial character.

c) Original prints, prints or lithographs, which, having been signed and numbered by the artist, come directly from one or more fully executed irons by hand, whatever the technique used, other than those obtained by mechanical or photomechanical means.

27. The supply of goods by retail traders. The exemption does not extend to the supply of goods and services provided by those subjects outside the scope of the trade activity.

Nor shall the exemption be extended to the first supply of goods imported into the territory of the Autonomous Community of the Canary Islands, whatever the nature of the recipients of the goods and the importer, without prejudice to the set out in the following paragraph.

28. The supply of goods and the services provided by taxable persons persons whose total volume of operations carried out during the preceding calendar year had not exceeded 3,000,000 pesetas. This limit will be automatically amended each year according to the variation in the previous year of the consumption price index of the Autonomous Community of the Canary Islands.

29. Professional services, including those whose consideration consists of copyright, provided by plastic artists, writers, literary collaborators, newspapers and magazines, music composers, authors of theatrical works and the authors of arguments, adaptation, script or dialogues of the audiovisual works.

2. Recognition of the right of taxable persons to enjoy the exemptions referred to in paragraphs 6. and 12. The former number 1 shall be carried out by the Economic and Finance Ministry of the Autonomous Government of the Canary Islands, upon application by the person concerned, and shall have effect in respect of the operations for which the accrual takes place from the date of the corresponding agreement.

The effectiveness of such recognition will, moreover, be conditional on the concurrence of the requirements which, as provided for in this Regulation, are based on the exemption.

Article 12. Concept of entities or establishments of a social nature.

1. For the purposes of the foregoing Article, the following requirements shall be considered as social entities or establishments in which the following requirements are met:

1. It shall not be for profit and shall, where appropriate, devote the benefits to the development of activities exempt from the same nature.

The development of the exempt activities shall be understood to mean the benefits used in investments or consumption made for the development of the activities.

2. The charges of employers or legal representatives must be free of charge and lack of interest in the economic performance of the exploitation by themselves or through an individual.

3. The partners, community members or members of the institutions or establishments, and their spouses or consanguine relatives, up to and including the second degree, may not be the principal recipients of the exempt transactions or enjoy special conditions in the provision of services.

The provisions of the preceding paragraph shall not apply in the case of the services provided for in paragraph 8. and 13.

of the preceding article.

2. Institutions or establishments of a social nature must apply for recognition of their status as the Ministry of Economy and Finance of the Autonomous Government of the Canary Islands.

The effectiveness of such recognition will also be conditional on the concurrence of the requirements which, as provided for in this Regulation, are based on the exemption.

Article 13. Retail merchant concept.

1. For the purposes of this tax, the taxable persons in whom the following requirements are met shall be considered as retail traders:

1. To make with habituality sales of movable or semi-moving goods without having undergone any process of manufacture, manufacture or manufacture, by themselves or through third parties.

Not to be considered as retail traders, in relation to the products processed by them, who have submitted the products which are the object of their activity by themselves or through third parties to some of the processes indicated in the preceding paragraph, without prejudice to their consideration of such products in respect of other products of similar or different nature which they place on the market in the same state in which they acquired them.

2. That the sum of the consideration for the deliveries of these goods to the Social Security or those who do not have the status of businessmen or professionals, carried out during the preceding year, would have exceeded 70 per 100 of the total of those made.

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 can calculate the percentage indicated in that paragraph for not having carried out commercial activities during the previous year.

2. For the purposes of applying the above paragraph, it shall be deemed not to be processing operations and, consequently, the condition of the retail trader shall not be forfeited for the performance of such operations, which shall then be related:

1. The classification and packaging of products, where they are not the subject of any processing.

2. The placing of marks or labels, as well as the preparation and cutting, prior to the delivery of the goods transmitted.

3. Washing, disinfected, dissected, ground, chopped, chipped, husked, uncorked and cleaned of food products and, in general, acts of mere preservation of the goods, such as pasteurisation, refrigeration, freezing, drying, sorting, packaging and packaging.

4. The processes of refrigeration, freezing, cutting or gutted for fresh meat and fish.

5. The making and placement of curtains and curtains.

6. The simple adaptation of garments made by third parties.

Article 14. Exemptions relating to exports.

The following operations are exempt from the tax:

1. Deliveries of goods which are definitively sent to the Peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the C.E.E. or are definitively exported to third countries by the transmission or by a third party on behalf and by account of the latter.

The supply of goods to sea areas situated outside the territorial sea referred to in Article 2. This Regulation shall, for the purposes of the application of the tax, have the same consideration as the supply of goods exported definitively to third countries.

The exemption will be conditional upon the effective departure of the goods from the territory of the Autonomous Community of the Canary Islands, the same being understood when it is established by the applicable legislation.

For the purposes of crediting their right to the exemption, the transmission must be kept at the disposal of the Administration, during the period of limitation of the tax, the copies of the invoices, the duplicate of the declaration in which the departure of the goods and other supporting documents of the operation is credited, due to the diligence of the managing office;

2. Deliveries of the goods sent definitively to the Peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the EEC or definitively exported to third countries by the acquirer not established on the islands The Canary Islands or by a third party on behalf and on behalf of the Canary Islands, when the conditions and conditions set out below are met.

The exemption provided for in this number 2 does not include the supply of goods intended for the equipment or the provision of sports or recreational craft, of tourism aircraft or of any means of transport for private use of the acquirer.

The requirements that condition the exemption are, in each case, the following:

1. Shipments of commercial character.

When goods subject to deliveries constitute a commercial expedition:

(a) The acquirer or third party acting on behalf and on behalf of the acquirer shall provide the supplier with an acknowledgement of receipt of the goods at the time they are made available to them.

(b) The goods shall be effectively out of the territory of the Autonomous Community of the Canary Islands within three months of the date of their making available on the basis of the exit from the territory of the Autonomous Community of the Canary Islands. establish the applicable legislation.

(c) The declarations of dispatch to the Spanish peninsular territory, Balearic Islands, Ceuta, Melilla or any other Member State of the C.E.E.

or export to third countries shall be completed by the supplier and shall be filed in the management office by the acquirer or by the third party acting on his behalf and on his behalf, who, within 30 days following the date of departure of the goods, they shall send the duplicate of the declarations to the supplier with the due diligence of the said office certifying that exit.

Failure to comply with the time limits set out in points (b) and (c) above will determine the supplier's obligation to settle the tax on the transaction.

(d) The supplier shall keep the documentation referred to in the previous No 1 at the disposal of the Administration.

2. Passenger regime.

A) Export of goods driven by travellers.

Deliveries of goods to travelers are exempt from the Indirect General Tax Canarian when the following requirements are met:

(a) that the goods subject to such deliveries do not constitute a commercial issue.

Goods shall be deemed not to constitute a commercial issue where they have been acquired on an occasional basis for the sole purpose of the personal use of the traveller or his family or to offer them as gifts to others. persons resident also outside the Canary Islands, and who, by their nature or quantity, cannot be presumed to be affected by a business or professional activity.

(b) The unit value of the goods acquired, including taxes, is greater than 75,000 pesetas in the case of travellers who have their habitual residence in the Spanish mainland or Balearic Islands, Ceuta or Melilla. In another case, the limit of this unit value shall be 6,000 pesetas.

For these purposes, the object is considered to be the good or group of goods that normally constitute a set.

(c) Which, however, is exempt from the supply of such goods, the transmitter issues the corresponding invoice adjusted to the official model and has an impact on the acquirer of the tax, without prejudice to its return in the form provided for in Article 85 of this Regulation.

d) That the goods purchased by the traveller effectively leave the territory of application of the tax.

For this purpose, the traveller must present the goods in the managing office within three months of the issue of the corresponding invoice.

e) the purchaser of the goods residing outside the territory of the Autonomous Community of the Canary Islands, a circumstance which may be credited by means of a passport, a national identity document or any other document or official certification issued for these purposes and the data of which shall include the transmission on the invoice issued by it.

B) Tax-free stores.

The supply of goods carried out in duty-free shops which, under the control of the Administration, exists at ports and airports, as well as those on board vessels or aircraft which they carry out, are exempt. international navigation.

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

The works referred to in the preceding paragraph are those which aim to improve or transform the goods, even by incorporating them into other goods of any origin.

The exemption will be conditional on the concurrency of the following requirements:

1. The goods resulting from the work carried out shall be sent directly to the Spanish peninsular territory, the Balearic Islands, Ceuta, Melilla, any other Member State of the European Union

or exported with the same character to third countries by whom it carried out such works or by its addressee 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 above.

The departure of the goods from the territory of the Autonomous Community of the Canary Islands will be carried out in the form provided for, according to the cases, in numbers 1 and 2 of this article.

2. The taxable person who provides the services is 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.

4. The supply of goods to duly recognized bodies which send them definitively to the Peninsula, the Balearic Islands, Ceuta, Melilla, any other Member State of the European Union or to export definitively to third countries within the framework of the their humanitarian, charitable or educational activities, prior to the recognition of the right to the exemption in the form indicated below.

For the purposes of this exemption, the Ministry of Economy and Finance of the Autonomous Government of the Canary Islands shall be responsible for the official recognition of the bodies carrying out the activities referred to in the preceding paragraph, request for the same and previous report by the competent body to prove that the bodies are acting without a profit.

The exemption shall be conditional on the goods acquired by those bodies being definitively exported to third countries, to the Spanish peninsular territory, the Balearic Islands, Ceuta, Melilla or any other Member State of the EEC within three months of the date of the acquisition concerned, which shall be credited by the declaration of exit, the copy of which shall be forwarded to the supplier within 10 days of the date of its entry into force. realization.

For the justification of the exemption, the supplier must be in possession of the following documents: The duplicate of the invoice,

the order note in which the acquirer declares the destination for the export of the goods and the commitment to pay the tax if it is not made, a copy of the certificate of official recognition of the body carrying out the the acquisition by the Ministry of Economy and Finance of the autonomous government of the Canary Islands and a copy of the declaration of exit of the goods.

Failure to comply with the time limits referred to in this number 4 shall determine the obligation to carry out the liquidation and impact of the tax.

5. The provision of services, including transport and ancillary operations, other than those covered by an exemption pursuant to Article 11 of this Regulation, where they are directly related to the following operations:

1. Exports of goods to third countries, whether they are final or temporary.

2. Shipments of goods to the peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the EEC, also of a definitive or temporary nature.

The recipient of the services must deliver to the person who has to lend them a letter stating that the goods to which they refer will be exported to third countries or sent to the peninsular territory Spain, the Balearic Islands or any other Member State of the EEC.

The departure of these goods from the territory of the Autonomous Community of the Canary Islands shall be effected within three months of the date of completion of the service. Such a circumstance shall be furnished by a copy of the document corresponding to the departure of the goods, which shall be sent by the consignee of the services to whom he provides them within 10 days of the departure.

After the periods indicated above without having received the document indicated by the taxable person providing the service, he must pay the corresponding tax.

They will be considered to be included among the services exempt from this number 5, those of transport; loading, unloading and conservation; custody, storage and packaging; rental of the means of transport, containers and materials of the protection of goods; those provided by customs agents and other analogues.

6. Services provided by intermediaries acting in the name and on behalf of third parties, when they are involved in the operations described in this Article or in those carried out outside the Canary Islands.

For the purposes of the preceding paragraph, the supply of goods made on the peninsula, the Balearic Islands, Ceuta, Melilla, any other State shall be included among the operations carried out outside the territory indicated. Member of the EEC or in third countries to be sent or exported to the Canary Islands and exports from those countries and territories.

This exemption does not apply to the mediation services of travel agencies that hire in the name and on behalf of the traveler benefits that are carried out on the peninsula, Balearic Islands, Ceuta or Melilla or in any other State Member of the EEC.

Article 15. Exemptions in operations treated as exports.

The following operations are exempt:

1. Deliveries, constructions, transformations, repairs, maintenance, total chartering or leasing of vessels affected essentially by international maritime navigation and those intended exclusively for rescue, maritime assistance or coastal fishing.

The exemption shall not apply to the operations referred to in the preceding paragraph where they relate to warships, sports or recreational craft.

The application of exemptions from this number 1 will conform to the following rules:

1. It shall be understood that a vessel is essentially affected by international maritime navigation or assimilated when more than 50 per 100 of the distance travelled in the singladuras carried out during every two consecutive calendar years, counted from the (i) imports, corresponding to those navigations, in accordance with the provisions of the Annex to this Regulation.

2. The affectation of the vessel to the navigations justifying the exemption shall be maintained for a period of 15 years following the date of the corresponding delivery or construction of the vessel. In the case of delivery of the vessel during that period, this requirement shall be deemed to be fulfilled if the acquirer maintains the affectation indicated for the remainder of the time until its termination.

The non-affectation of the vessel or the disaffection produced before the end of the period referred to in the preceding paragraph shall determine the obligation for the acquirer or consignee to enter the tax which would have been the time of delivery or processing with the interest of late payment.

For these purposes, the disaffection shall be understood at the end of each consecutive two-year calendar year, counted from the date of delivery or transformation, when the affectation defined in the This number 1.

3. The acquirer of the vessel or recipient of his conversion shall be the holder of the activities determining the exemption from the tax.

4. A vessel shall be deemed to have undergone processing where the amount of consideration of the work carried out on the vessel exceeds 50 per 100 of its value at the time of its entry into the yard for that purpose.

For these purposes, the value of the vessel shall be determined in accordance with the rules contained in the specific legislation to configure the customs value of the goods to be imported.

5. The transmission or the services indicated must have in their possession, in addition to the duplicate of the corresponding invoice or of the chartering or tenancy contracts, an authorized copy of the inscription of the vessel in the list from the Registry of Registry which entitles him to the development of the exempt activity.

If this is the construction of the vessel, such authorized copy of its registration must be delivered by the acquirer to the transmitte within one month from the date of the award of the flag.

In another case, the builder will proceed to the settlement of the tax with the interest of late payment.

2. The supply, lease, repair and maintenance of the objects incorporated in the vessels listed in the first subparagraph of the preceding number 1, with the exceptions provided for in the second subparagraph of the same number, where those objects are use on the operation of the vessels and are located on board of the vessels or are incorporated for the same purposes after their registration in the Register of vessel registration.

Goods incorporated or used in the operation of ships, inter alia, shall be considered to be the following: The gear and instruments of the on-board equipment, those which constitute their use, those intended for their furnishing or decoration; and instruments, equipment, materials and networks used in fishing, such as baits, hooks, sedals, fish packing boxes and the like. In any event, these objects shall be effectively incorporated or placed on board the vessels and shall form part of the inventory of their belongings.

The waiver will only proceed when the following conditions are met:

1. The purchaser of the goods or the consignee of the services referred to in this number 2 shall be the person or entity that owns the vessel or to which its holding corresponds.

2. A document issued by the managing office in which the person or entity referred to the transfer or to the person providing the services liable for exemption within one month from the date of delivery or delivery of the services the effective incorporation or placing on board of the goods on the vessel is established.

3. That the goods which have been the subject of delivery remain effectively incorporated or placed on board vessels whose activity determines the exemption.

If the vessel, to which such goods were incorporated or on board which they had placed, disaffected the activities which determined the tax benefit or if such goods were to be disaggregated from the vessels engaged in activities exempt and incorporated or placed on board other affections to different activities, the person or entity that owns or, where appropriate, the operator of the vessel in which the goods remain shall be obliged to declare them for importation into the terms and application of the rules laid down in the previous No 1.

In relation to the exemptions regulated in this number, rules 1 will apply. and 5. of the third paragraph of the previous number 1.

3. Deliveries of passenger goods placed on board the following vessels:

1. Those engaged in international maritime navigation or assimilated as defined in the Annex to this Regulation.

2. The affections to the rescue or the maritime assistance.

3. Those affected by coastal fishing, without the exemption being extended to the provisions on board.

In no case shall the deliveries of avittualling products on board sport or recreational vessels or, in general, private use be exempt.

The defined as such in the Annex to this Regulation shall be considered as victualling products.

The exemption will be conditional on the following requirements:

(a) The supplier of the avitualling products shall have in his possession the duplicate of the invoice issued and the note of request of the person or entity to exploit the vessel in which the destination of such products is declared.

(b) The placing on board of vessels whose activity or affectation justifies the exemption shall be made within three months of delivery and shall be credited with the relevant shipping document.

The duplicates of these documents will be forwarded by the purchaser of the products of the victualling to their supplier within one month following the completion of the shipment.

(c) Failure to comply with the time limits referred to in point (b) above shall determine the supplier's obligation to liquidate and pass on the relevant tax.

4. The delivery, construction, processing, repair, maintenance, total chartering or leasing of the aircraft used exclusively by the companies that are essentially engaged in international air navigation.

The exemption will not reach sports or recreational aircraft.

For the purposes of the exemptions in this number 4, the following rules apply:

1. International air navigation shall mean that defined in the Annex to this Regulation.

2. A company shall be deemed to be essentially engaged in international or equivalent air navigation, where more than 50 per 100 of the distance travelled on flights by all aircraft used exclusively by the carrier during the period of every two consecutive calendar years, counted from the delivery or transformation of the aircraft considered, corresponds to those navigations.

For these purposes, the year in which the delivery or transformation is effected shall be considered as a complete calendar year, whichever is the date of completion of the delivery or transformation.

3. The affectation of the company to international air navigation shall be maintained for a period of 15 years following the delivery or transformation of the aircraft to which the exemption relates. In the case of delivery of the aircraft during that period, this requirement shall be understood if the acquiring company has and retains the affectation indicated for the remainder of the remaining time until the end of the indicated period.

The disaffection of the company, produced before the termination of the period referred to in the preceding paragraph, will determine the obligation of the company to enter the tax that would have been imposed at the time of the import, with interest on late payment.

For these purposes, the disaffection shall be understood at the end of each consecutive two-year calendar year, when the affectation defined in this number 4 is not recorded in the same period.

4. An aircraft shall be deemed to have undergone processing where the amount of consideration of the work carried out on it exceeds 50 per 100 of the value of the aircraft at the time of its entry into the workshop for such purposes. works.

For these purposes, the value of the aircraft shall be determined in accordance with the rules contained in the specific legislation to configure the customs value of the goods to be imported.

5. In order to justify the right to exemption, the transfer of the goods or those who provide the services referred to in this number must be in their possession, in addition to the duplicate of the invoice or the chartering or leasing contracts. corresponding, an authorised copy of the registration of the aircraft in the Register of registration of the air zone which originates, with an indication of the company to which it belongs, as well as a declaration by the target company of the operations indicated in this number 4 where it is stated that the same has been fulfilled during the two calendar years immediately preceding the conditions which determine their essential dedication to international air navigation under the terms set out in Rule 1.

precedent.

If this is the construction of the aircraft, the authorized copy of its registration must be delivered by the acquirer to the transmitte within one month of the date of registration; otherwise, the (a) the purpose of the assessment of the tax in the interest of late payment.

6. The recipient of the operations referred to in this number 4 shall be the company itself essentially affecting international air navigation.

5. The supply, repair, maintenance and leasing of the goods incorporated in the aircraft referred to in the preceding number 4, provided that such objects are used in the operation of such aircraft and are located on board the aircraft. or are incorporated into them, for the same purposes, after their registration in the relevant aircraft register.

Goods intended for their equipment shall be considered to be incorporated or used in the operation of the aircraft, effectively being placed on board those aircraft and included in the inventory of their belongings.

The exemptions provided for in this number will only proceed when the following conditions are met:

1. The acquirer or recipient of the services is the company itself to which the aircraft belongs or to which its holding corresponds.

2. A document issued by the managing office in which it is issued shall be sent by the company to the transferor or to the person providing the services liable for exemption within one month of the date of delivery or delivery of the services. the effective incorporation or placing on board of the goods on the aircraft.

3. That the goods which have been the subject of a delivery remain effectively incorporated or located on board the aircraft to which the benefit of the exemption is granted.

If such goods are subsequently incorporated into other aircraft which do not comply with the conditions laid down in the previous No 4, the operator of the latter shall be obliged to declare them for importation into the terms provided for in the previous 1.

4. That the transmission or the services referred to in this number 5 are in possession of the documents referred to in the third paragraph number 4, rule 5. previous, that they come from.

6. Deliveries of products intended for the purpose of aircraft flying international air navigation, where they are acquired by the carriers to which such aircraft belong and are placed in the tanks of the said companies controlled by the competent authorities.

The exemption will be conditional on compliance with the requirements set out in the previous number 3 for ship-to-ship.

7. The provision of services other than those covered by numbers 1, 2, 4 and 5 of this Article, carried out to meet the direct needs of the vessels and aircraft referred to and their cargo.

The following services capabilities are understood to be included in this number:

(a) In relation to ships: pilotage, towing and mooring services; use of port facilities; ship-keeping operations and on-board equipment (disinfection, disinfection, de-ratization, etc.). (a) the maintenance and maintenance of the vessel; safety visits and technical expertise; assistance and rescue of the vessel; and operations carried out in the exercise of its profession by the maritime corridors and interpreters; consignors and maritime agents.

(b) In relation to the loading of the vessels: cargo and unloading operations of the vessel; rental of containers and material for the protection of the goods; custody of the goods; parking and traction of the goods; wagons of goods on the lanes of the dock; boarding and unloading of passengers and their luggage; rentals of materials, machinery and equipment used for the boarding and unloading of passengers and their luggage, and recognitions veterinary, plant health and official bodies responsible.

c) In relation to aircraft: services relating to landing and take-off; use of lighting services; parking, mooring and shelter of aircraft; use of facilities arranged to receive passengers or goods; the use of facilities for the provision of aircraft; cleaning, maintenance and repair of aircraft and equipment on board; surveillance and prevention to prevent fires; visits security and technical expertise; rescue of aircraft and operations carried out in the exercise of their profession by the consignors and agents of the aircraft.

(d) In relation to the cargo of aircraft: the operations of boarding and disembarkation of passengers and their luggage; loading and unloading of aircraft; assistance to passengers; registration of passengers and baggage; Reception of traffic signals; transfer and transit of correspondence; rental of materials and equipment necessary for air traffic and used in the premises of airports; rental of containers and protective materials goods and the custody of veterinary, plant health and plant health products competent officers.

To justify the affectation of the vessels or the condition of the aircraft in respect of which the services referred to in this number 7 are provided, the rules contained in the preceding number, respectively, shall apply. 1, third paragraph, rule 3., and second paragraph number 4, rule 3.

8. On condition of reciprocity, the following supplies of goods and services:

1. The supplies and leases of buildings or parts thereof and of land annexed, acquired or leased by foreign States for use as the seat of their diplomatic representations or consular offices or as residence of the Head of the diplomatic mission or Head of the consular post, where, in the latter case, the consular post is a career consular officer.

It shall be understood as forming part of the seat of a diplomatic representation or consular post of the premises intended to host the services or offices that integrate it.

The exemption extends to the execution of works, with or without the provision of materials, directly formalized between a foreign State and the contractor, which have as their object the construction, reform, extension or rehabilitation of the buildings referred to in the preceding paragraph, as well as the repair or preservation work of the same buildings where the amount of the buildings concerned exceeds 100 000 pesetas.

2. Deliveries of motor vehicles, to be circulated with diplomatic or consular boards, to diplomatic representations and consular posts, to the Foreign Diplomatic Corps and to accredited foreign career consular officers in Spain, attached to consular offices in the Autonomous Community of the Canary Islands.

For the application of the exemptions of this number, the prior recognition of their origin by the Ministry of Economy and Finance of the autonomous government of the Canary Islands is needed.

In the operations referred to in paragraph 1. The Ministry of Foreign Affairs shall be accompanied by the request made, a certification of the diplomatic representation or consular post concerning the destination of the buildings to which the exempt operation relates, visada by the Ministry of Foreign Affairs.

Also, in the case of deliveries of buildings or land, the exemption is conditional upon the granting of the corresponding public document and the registration in the Land Registry in the name of the acquiring State.

The taxable persons who carry out the transactions referred to in this Article 8 shall not settle the tax corresponding to them and shall not therefore have an impact on the amount of the tax. that the operation is exempt and retaining a copy of the recognition of the operation by the Ministry of Economy and Finance of the autonomous government of the Canary Islands as a supporting document for the exemption.

9. On condition of reciprocity, the supplies of movable goods and services provided below are related:

1. Deliveries to foreign States of furniture and goods for the furnishing and service of the premises of diplomatic representations or consular posts and of the residence of the Head of the diplomatic mission or the Head of an office consular, where, in the latter case, a consular officer of the career is involved.

2. Deliveries of office equipment for official use when the amount of each purchase exceeds 50,000 pesetas.

3. Supplies of water, gas, electricity and fuels, as well as the provision of communication, telephone and radio-telegraphic services, carried out for the premises and residences referred to in paragraph 1. previous.

4. Supplies of furniture or goods for the personal use or furnishing of the usual dwelling of diplomatic staff members and consular officers, carried out over a period of 18 months from their date of departure accreditation to the diplomatic representation service or the consular post.

The exemptions provided for in this number 9 shall be made effective by the reimbursement of the contributions supported by impact on each settlement period. The request for repayment shall be made by the diplomatic or consular representation to the Economic and Finance Ministry of the autonomous government of the Canary Islands within the time limits laid down for the tax declaration. The original equivalent invoices or documents must be accompanied by the requirements of Royal Decree 2402/1985 of 18 December 1985, as well as a certification of the diplomatic representation or office. (a) an expression of the use to which the goods or services are intended to which the exempt transactions are referred to by the Ministry of Foreign Affairs.

10. The exemptions in the operations referred to in Nos. 8 and 9 of this Article are applicable to the international bodies recognised by Spain and to the members with diplomatic status of those bodies, within the limits and with the the conditions laid down, where appropriate, in the respective international conventions.

11. The gold deliveries to the Banco de España.

12. Gold deliveries in bullion intended for deposit in financial institutions to support the issuance of certificates of credit for such deposits.

13. Services provided by intermediaries acting on behalf and on behalf of third parties when they intervene in the operations described in this Article.

14. The carriage of passengers and their luggage by sea or air which, initiated in the Canary Islands, ends on the peninsula, the Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in third countries or vice versa.

The exemption will be extended to return and return transports with scale in territories outside the territorial scope of the tax.

The exemption will not reach the transports of those travellers and their luggage who have started the journey in the territory of the Autonomous Community of the Canary Islands, ending in the same territory, even if the vessel or the plane continues routes to ports or airports situated outside the territory of that country.

15. The services provided by public telecommunications services to other undertakings of the same activity established abroad for the performance of such public services when they have been initiated outside the Spanish territory.

The exemption reaches the telecommunications services initiated on ships or aircraft when they sail outside the territory of application of the tax and services of the same nature initiated on ships essentially affected by the international maritime navigation or aircraft used exclusively by companies which are essentially engaged in international air navigation, including during their navigation through the territory of application of the tax.

Article 16. Exemptions relating to Free Zones and Deposits and Customs Deposits.

1. The following transactions relating to free zones, free warehouses, customs warehouses or other authorised warehouses are exempt, provided that the provisions of the customs and Community legislation are complied with in each case (a) the regulatory framework for such areas and the goods to which they relate are not used or intended for final consumption in those areas:

1. The supply of goods dispatched or transported to the aforementioned areas to be introduced into them.

The supply of goods to be introduced into the duty-free shops shall be understood to be included in the exemption.

The exemption provided for in this paragraph 1. be subject to compliance with the formalities and requirements, as appropriate, as determined in Article 14 (1) and (2) of this Regulation, while replacing the references of those provisions to the exit from the territory of the Community Autonomous of the Canary Islands by the entrance in the exempt areas.

For the purposes of the exemption defined in this paragraph 1, the goods entered in the exemption shall not be considered to be used for the purpose of being incorporated into the ongoing processing processes in question. (a) under the customs processing arrangements for customs processing or inward processing arrangements in the suspension system.

2. The deliveries of goods found in the aforementioned areas.

3. The provision of services directly related to the exempted deliveries referred to in paragraphs 1. and 2. previous.

4. The provision of services relating to goods which are situated under the protection of the said areas.

5. Services provided by intermediaries acting on behalf of and on behalf of third parties when involved in the operations described in paragraphs 1, 2, 3. and 4. previous.

2. The situation of the goods in the exempted areas referred to in this Article shall be credited by means of a document issued for that purpose, the original or copy of which shall be held by the taxable person carrying out the exempt operation.

3. The benefits of services which are exempted under Article 11 of this Regulation shall be exempt from the exemption provided for in this Article.

4. The exemption does not reach the operations concerning the following goods:

1. Those qualified as investment in relation to the acquirer.

2. Fuels, fuels and other goods that are consumed by their use in the production processes carried out in the aforementioned exempt areas.

5. The Canary Tax Administration may require the taxable person to provide sufficient security to secure the payment of the tax liability that is payable as a result of the non-compliance with the requirements laid down in this Article. for the application of the relevant exemptions.

Article 17. Exemptions related to special customs arrangements.

1. The following transactions relating to goods imported into transit, warehousing, temporary importation, inward processing arrangements in the suspension system are exempt, with the exception of the form of advance export and processing under customs control, as long as they remain in such situations and, in each case, the provisions of State and Community customs legislation are complied with:

1. The supply of the goods covered by the said schemes, including the compensating goods of the suspension system.

Clearing products shall mean those resulting from the processing of imported goods, whether or not they are incorporated in goods acquired within the territory of the Autonomous Community of the Canary Islands, whatever their degree of transformation.

2. The services related to the same goods.

3. Services provided by intermediaries acting on behalf of and on behalf of third parties when they are involved in the operations described in the preceding paragraphs.

2. The situation of the goods at the time of the operations referred to in the preceding number 1 shall be credited by the corresponding document issued for that purpose, the original or copy of which shall be held by the taxable person who perform the exempt operation.

3. The services provided for in this Article shall in no case be covered by the services provided for in Article 11 of this Regulation.

4. The Canary Tax Administration may require the taxable person to provide sufficient security to secure the payment of the tax liability that is payable as a result of the non-compliance with the requirements laid down in this Article. for the application of the relevant exemptions.

Article 18. Exemptions for imports of goods.

Imports of goods in the Canary Islands and the services provided for in the following Articles are exempt from the tax provided that the conditions and requirements are met.

by this Regulation and the other provisions laid down in the provisions applicable to them.

Article 19. Exemptions from definitive imports of goods for which the internal supply is exempt.

The definitive imports of the following goods are exempt under the conditions and subject to compliance with the requirements set out in each case:

1. Blood, blood plasma and other fluids, tissues, and other elements of the human body for medical or research purposes or for processing for identical purposes.

2. Vessels essentially affect international maritime navigation and those dedicated exclusively to rescue, maritime assistance or coastal fishing, provided that they are registered in the Canary Islands.

War ships and sports or recreational craft are excluded from the exemption.

A ship shall be understood to be essentially affected by international maritime navigation or assimilated when more than 50 per 100 of the distance travelled in the singladuras carried out during each consecutive calendar year, from the import, corresponding to those navigations, in accordance with the forecasts contained in the Annex to this Regulation.

This exemption is conditional on the following requirements:

1. The affectation of the vessel to the navigations justifying the exemption shall be maintained for a period of 15 years following the date of importation. In the case of delivery of the vessel during that period, this requirement shall be deemed to be fulfilled if the acquirer maintains the affectation indicated for the remainder of the time until its termination.

The non-affectation of the vessel or the disaffection produced before the end of the period referred to in the preceding paragraph shall determine the obligation for the importer or the acquirer to enter the tax which would have been the time of importation with the interest of late payment.

For these purposes, the disaffection shall be understood at the end of each consecutive two-year calendar year, counted from the date of the import, when the affectation defined in this number 2 is not recorded.

2. The importer shall declare in the dispatch document the destination of the vessel and present in the management office, within the month following the award of the flag, the certificate issued by the competent authority certifying the registration. in the corresponding list of the Registry of Registry which entitles you to the exempt activity. Failure to comply with this requirement shall also determine the importer's obligation to enter the import tax with the interest of late payment.

3. The import of the vessel shall be carried out by the holder of the activities determining the exemption from the tax.

3. The objects incorporated in a vessel whose importation is exempt from this tax in accordance with the preceding number 2, when used for their operation on board.

Goods incorporated and used in the operation of those vessels shall be considered, inter alia, to be attached to and instruments on board; those which constitute their use, those intended for furnishing or decoration, and instruments, equipment and nets used in fishing, including baits, hooks and sedals. In any case, these goods must actually be on board the vessels and be part of the inventory of their belongings.

The exemption will only proceed if the imports of the goods indicated are made by the companies to which the exploitation of the vessels to which they are actually to be incorporated corresponds.

The incorporation must be carried out, under the control of the Canary Tax Administration, within one year following the importation. In the event of non-compliance with this obligation, the tax shall be settled and entered in the way in which the penalties are applied and the interest for late payment is required.

In the event that such goods are incorporated or subsequently used in the operation of ships whose importation is not exempt, the rules laid down in the preceding number 2 for the disaffection of vessels shall apply.

4. Aircraft intended to be used exclusively by companies which are essentially engaged in international air navigation.

The exemption will not reach the importation of sports or recreational aircraft.

International air navigation shall mean the one defined in the Annex to this Regulation.

A company shall be deemed to be essentially engaged in international or equivalent air navigation, where more than 50 per 100 of the distance travelled on flights performed by all aircraft used exclusively by the same during every two consecutive calendar years, counted from the import of the aircraft considered, corresponds to those navigations.

For these purposes, the year in which the import is carried out shall be considered as a complete calendar year, whichever is the date of completion of the import.

The exemption referred to in this number will be conditional upon compliance with the following requirements:

1. The affectation of the company to international air navigation shall be maintained for a period of 15 years following the importation of the aircraft referred to in the exemption. In the case of delivery of the aircraft during that period, this requirement shall be understood if the acquiring company has and retains the affectation indicated for the remainder of the remaining time until the end of the indicated period.

The disaffection of the company, produced before the termination of the period referred to in the preceding paragraph, will determine the obligation of the company to enter the tax that would have been imposed at the time of the import, with interest on late payment.

For these purposes, the disaffection shall be understood at the end of each consecutive two-year calendar year, when the affectation defined in this number 4 is not recorded in the same period.

2. The importing company must declare in the document of dispatch the affectation to the international air navigation.

3. The import of the aircraft must be carried out by the company which uses it directly in its air navigation activity determining the effect of the exemption.

5. The objects incorporated in the aircraft referred to in the preceding number, when used for their operation on board the aircraft.

They shall be considered to be incorporated goods used in the operation of such aircraft, inter alia, on board instruments; those intended for furnishing or decoration and those specified for the performance of the flight according to certification issued by the competent authority. In any case, these goods must be in fact on board the aircraft and be part of the inventory of their belongings.

The exemption will only proceed if the imports of the goods indicated are made by the companies to which the operation of the aircraft or by the owners of the aircraft corresponds.

The incorporation must be carried out, under the control of the Canary Tax Administration, within one year following the importation.

In the event of non-compliance with this obligation, the tax will be settled and entered, with the application of the penalties and the demands of the interest for late payment.

Where such goods are incorporated or subsequently used in the operation of aircraft the importation of which is not exempt, the rules laid down in the preceding number 2 for the disaffectation of such aircraft shall apply. vessels.

6. The products of victualling which, from the moment when the entrance is produced in the Canary territory until the arrival at the port or the Canary ports that constitute ports of call of their journey and during their stay in the same for the necessary time for the fulfilment of their purposes, they have been consumed or are on board ships carrying out international maritime navigation.

The victualling products referred to in the preceding paragraph shall be included in the manifest or list of provisions provided for in the applicable legislation. Products not covered by the above documents, including those which, without justified cause, are missing from the arrival of the vessel to a Canary port, shall be subject to and not exempt from the tax, without prejudice to any penalties.

For the purposes of this Regulation, it shall be understood by means of victualling products as defined in the Annex to this Regulation.

7. Aviation products imported by shipping companies when they are intended for the supply of those ships which, belonging to such companies, carry out international maritime navigation.

These products must be placed in deposits of the companies themselves, authorized and controlled by the Tax Administration.

The output of these products from the deposits will be recorded separately, as they are intended for the victualling of ships dispatched for a voyage of international maritime navigation or to the victualling of ships for trips that do not have that condition.

8. The products of victualling which, since the entry into the Canary territory until the arrival at the airport or the Canary airports that constitute ports of call of their flights and during their stay in the same for the time necessary for the compliance with their purposes, have been consumed or are on board aircraft carrying out international air navigation.

This exemption will be conditional upon compliance with the requirements of the previous number 6.

9. Aviation products imported by air navigation companies when they are intended for the supply of those aircraft which, belonging to those carriers, carry out international air navigation.

This exemption shall be subject to the rules laid down in the previous No 7.

10. The legal tender bank notes.

11. Securities securities, without the exemption being extended to the goods covered by the securities representative of goods.

12. Paintings and drawings made by hand, sculptures, prints, prints and lithographs, provided that, in all cases, they are original works and are imported directly by the authors of the same.

The exemption shall not apply to works of art excluded from the tax benefit as provided for in Article 11 (26) of this Regulation.

The frames of the paintings or drawings, prints, prints and lithographs shall only be included in the exemption when their nature and value are in relation to them.

13. The gold imports made by the Banco de España are exempt from the tax provided that they are made directly by this entity or by those who act in the name and on behalf of it.

14. Gold in bullion intended for deposit in financial institutions to support the issuance of certificates of such deposits.

Article 20. Exemptions for imports of goods for the purposes of residence.

Final imports of the following goods are exempt from the tax:

1. Imports of personal property belonging to natural persons transferring their habitual residence to the Canary Islands from the rest of the national territory, any other Member State of the European Economic Community or third countries.

For the purposes of this Regulation, personal property shall be understood as those intended normally for the use or the needs of the household of the person concerned or of the family members who live with him provided that, by his nature or quantity, he does not may be presumed to affect a business or professional activity, with the exception of the portable instruments of mechanical or liberal arts necessary for the exercise of the profession or trade of the importer.

The following personal property is comprised of the following:

personal effects, household effects, objects of furniture, bicycles, motorcycles, private motor vehicles and their trailers, camping caravans, recreational craft, tourist aircraft, provisions normal household, domestic animals and animals to be assembled.

Tobacco products, alcoholic beverages, colonies, coffee and tea may only be imported with the exception of the limit of the quantities allowed for exemption under the rules on travellers covered by Article 25 of this Regulation. Royal Decree. However, where the person concerned has had his former residence on the peninsula, the Balearic Islands, Ceuta and Melilla or another Member State of the European Economic Community, the exemption shall be extended to four times of those quantities.

The following goods are excluded from this exemption:

-Commercial or industrial vehicles, as such vehicles with a mechanical motor for road traffic which, by their construction characteristics, are suitable and intended for transport, whether paid or not, of persons, with a capacity exceeding nine seats, including that of the driver, or of goods, as well as vehicles of special use other than transport itself.

-Professional materials other than portable instruments of mechanical or liberal arts.

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

1. The person concerned will have to leave at his usual residence to transfer it to the Canary Islands.

If you have had your habitual residence on the peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community you must prove that you have lived regularly in the same for at least one hundred and eighty-five years. days per calendar year.

If you have had your residence outside the European Economic Community you must prove that you have stayed in the European Economic Community for a minimum of 12 consecutive months.

It is understood that this period of continued residence is not interrupted when, for reasons of holiday, tourism, business or sickness, there is an absence of 40 and five days at the latest within that period.

Assistance to a university or a school does not involve moving the usual residence.

2. That the goods have been acquired under normal conditions of taxation in the country of origin or origin, without having benefited, on the occasion of their departure from those countries, of exemption or refund of the taxes incurred.

This requirement shall be deemed to be fulfilled where the goods have been acquired under the exemptions established in the diplomatic or consular arrangements or in favour of the members of the recognised International Bodies and in the State of origin, subject to the limits and conditions laid down in the international conventions establishing such bodies or by the host agreements.

3. That the goods covered by the imports have been in possession of the person concerned or, in the case of non-consumable goods, have been used by him during the following minimum periods:

(a) Motor vehicles for road traffic, including trailers, caravans, transportable dwellings, recreational craft and passenger aircraft must have been affected by the use of the persons concerned, before the transfer of their residence, for a period of at least 12 months, if they have benefited from the exemptions referred to in the second subparagraph of paragraph 2. previous, and six months in other cases.

(b) Goods other than those referred to in point (a) above which have benefited from the exemptions referred to in the second subparagraph of paragraph 2. prior to the transfer of residence must have been affected by the use of the persons concerned for a minimum period of six months.

4. The persons concerned must present at the time of importation a detailed relationship of the goods to be imported, and the document proving the discharge in the last place of residence.

If the person concerned is a foreign national, the letter of residence in the Canary Islands must be linked to the relationship of the goods. If you do not have such a letter at the time of import, you may grant it, after the provision of the corresponding guarantee, a period of up to twelve months for your submission.

5. The goods may be imported into one or more times, and by a single or different management office.

In any case, all imports must be made within 12 months of the date of the entry into the former residence.

6. The goods referred to in paragraph 3 (a). prior to importation, the import of which has benefited from the exemption, may not be transmitted, transferred or leased within 12 months of its importation, unless justified. In another case, they will be subject to payment of the tax and interest for late payment with reference to the time when such transactions were carried out.

2. Imports of personal property belonging to persons who, on the occasion of their marriage, move their residence from the peninsula, Balearic Islands, Ceuta, Melilla or abroad, to the Canary Islands.

The exemption also extends to imports of gifts usually offered on the occasion of marriage received by the persons referred to in the preceding paragraph, from those who have their habitual residence in another the territory of the European Economic Community and the unit value of the gifts does not exceed the value of 350 ECUs, or those who have their habitual residence outside the Community and the unit value of the gifts does not exceed Equivalent in pesetas of 200 ECUs.

This exemption will also be conditional upon compliance with the following requirements:

1. Those laid down in the preceding number 1, except those relating to paragraphs 3 (3), (b), and 5.

2. The importation of the goods shall be carried out in the period from two months before the date of the marriage and the four months following that date, which may be effected within that period of time. time, at one or more times and by a single or different management office.

The interested party must prove, by any means of proof admitted in law, that the marriage has taken place within the time limits indicated in the preceding paragraph or, where appropriate, that the official démarches have been initiated for his celebration. In the absence of such a charge, the payment of the tax shall be required for the import concerned with the date of completion of the import tax and the interest for late payment.

If the import has taken place before the marriage is concluded, sufficient guarantee shall be provided to the management office to ensure the payment of the tax liability payable, if any, for non-compliance with the requirement within the deadline set out above.

3. May the person concerned provide proof of his or her marriage or, where appropriate, the initiation of the official arrangements for his or her celebration.

3. Imports of personal property which have belonged to persons with habitual residence in the peninsula, Balearic Islands, Ceuta, Melilla, other Member State of the European Economic Community or a third country and are acquired by reason of inheritance, in the form of property or in usufruct, by natural persons or non-profit-making entities who actually have their habitual residence or are established in the Canary Islands.

The exemption shall also apply where the acquirer has a secondary residence in the territory of application of the tax if the goods come from the peninsula, the Balearic Islands, Ceuta, Melilla or another Member State of the European Economic Community.

Tobacco products, alcoholic beverages, colonies, coffee and tea can only be imported with exemption in the quantities provided for in the previous number 1.

The exemption referred to in this number will be conditional upon compliance with the following requirements:

1. The importer must accredit the acquisition of the property as a cause of the goods by means of the corresponding public deed given to Notary or by any other means admitted in law.

2. The importation of all the goods may be carried out at one or more times by one or more other managing offices.

In any event, all imports must be made within two years of the date of termination of the succession procedure with the award of the goods.

4. Personal effects and objects of furniture used, as well as domestic animals imported by persons who have their habitual residence on the peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the Economic Community European, when they are intended for the furnishing of a secondary residence in the Canary Islands.

Personal effects are made up of objects and clothing intended for the personal use of the importer or his family and the items of furniture for furniture or articles intended for the furnishing or normal equipment of a housing.

The personal property, as indicated in the preceding paragraphs, which are intended for the habitual residence or other secondary of the importer in the Canary Islands, from a secondary residence of the the same as that left on the peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, provided that such goods were actually intended for the use of the person concerned in this secondary residence with prior to their abandonment.

The application of this latest exemption will be conditional upon compliance with the following requirements:

1. The importer must prove to be the owner of the secondary housing or have taken it by lease for a minimum period of 12 months.

2. Secondary residences may not be leased or subleased during the periods of absence of the person concerned. In another case, the payment of the tax referred to at the time when this obligation is breached will be required.

3. Those set out in the previous number 1, eighth subparagraph, paragraphs 2., 3. (b), and 5.

4. That the goods correspond to the normal furniture of secondary housing.

5. The personal effects and objects of used furniture belonging to students who, having their habitual residence in the peninsula, Balearic Islands, Ceuta, Melilla or abroad, come to reside temporarily to the Canary Islands to carry out their studies in this territory.

Also included in the exemption are used objects and instruments that are normally used by such students in carrying out their studies, such as books, articles of scribania and drawing, calculators, machines of writing and similar goods.

Tobacco products, alcoholic beverages, colonies, coffee and tea can only be imported free of duty in the quantities provided for in the previous 1.

For the application of this exemption you will understand:

1. Personal effects and objects of furniture, those considered as such in the previous number 4.

2. Student, every person enrolled in a teaching facility established in the Canary Islands to follow the courses offered in the.

The exemption may only be granted once for each school year.

6. Investment property belonging to companies that cease definitively and totally in their activity in the peninsula, Balearic Islands, Ceuta, Melilla or abroad and move their headquarters or create a permanent establishment in the Canary Islands to start here the exercise of a similar activity.

Excluded from the exemption:

1. Means of transport other than instruments of production or of services.

2. Products suitable for human or animal nutrition.

3. Fuels and stocks of raw materials, semi-finished or finished products.

The exemption for this number 6 will be conditional upon compliance with the following requirements:

(a) That the imported goods have actually been used in the undertaking for a period of at least 12 months prior to the date of cessation of the activity in the territory of origin, which is to be credited by the corresponding acquisition invoice.

(b) The importation of the same shall take place within the period of 12 months following the cessation of the activity in the territory of origin.

(c) Such goods are intended for the same uses after importation.

d) That the imported goods correspond to the nature and importance of the undertaking concerned.

e) That the transfer of the company does not cause the merger or the absorption by another established in the Canary Islands.

Article 21. Exemptions for imports of goods within the framework of certain international relations.

Imports of goods listed below will be exempt from the tax:

1. The following goods, where they do not constitute a commercial issue:

(a) Decorations granted by the authorities of the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or of third countries to persons having their habitual residence in the territory of the Canary Islands.

(b) Cups, medals and similar objects of a essentially symbolic nature, granted on the peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or in third countries persons who have their habitual residence in the territory of the Canary Islands, in respect of their artistic, scientific, sporting or public activities or in particular recognition, provided that they are imported by the same persons who had been granted.

(c) Glasses, medals and similar objects of a essentially symbolic nature, delivered free of charge by authorities or persons established on the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or third countries to be delivered, with the same purpose as those referred to in point (b), in the territory of the Canary Islands.

d) Rewards, trophies, symbolic and low value memories, intended to be distributed free of charge to persons who have their normal residence in the territory of the Canary Islands, on the occasion of congresses, business meetings or similar events of an international nature.

2. Goods which as a gift and on an occasional basis:

(a) They are imported by persons who have made an official visit to the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or third countries and which have received such gifts from the authorities of the designated territories or countries on the occasion of that visit.

(b) They are imported by persons who make an official visit to the Canary Islands to deliver them to the official authorities or entities of these territories on the occasion of that visit.

(c) Be sent to the official authorities or entities of the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or third countries.

In all cases referred to in this paragraph, alcoholic and tobacco products and manufactured tobacco shall be excluded from the exemption.

This exemption shall be conditional on the fact that imported goods do not, by their nature or quantity, constitute a commercial expedition or are intended for the purposes of economic exploitation or activity, as well as The person concerned justifies the origin and destination of the imported goods.

The rules governing this exemption shall apply without prejudice to the provisions relating to the arrangements for travellers.

3. Goods which may be regarded as normally intended for use or consumption during their stay in the Canary Islands by foreign heads of State, by whom they represent them or have prerogatives similar to them, provided that they are reciprocity.

4. The goods donated to the King of Spain.

5. Pharmaceutical products intended for the use of persons or animals participating in international sports competitions in the precise quantities to cover their needs during the time they remain in the Canary Islands.

6. Goods intended for the purposes of conditioning or feeding on the route of animals from the peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or of third countries shall be conducted by: the Canary Islands in any means of transport, provided that such goods are on board the means of transport and are used or distributed in the course of that journey.

7. Goods destined for the construction, preservation or decoration of memorials or military cemeteries of foreigners in the Canary Islands.

8. Coffins and urns containing bodies or the remains of their incineration, as well as flowers, wreaths and other ornaments which are normally attached to them.

Article 22. Exemptions in imports of goods which are intended to comply with the purpose of social interest.

Imports of the following goods are exempt, under the conditions and with the requirements that, in each case, are indicated:

1. Imports of the goods listed below, made by entities or establishments for charitable or philanthropic purposes:

1. Those of first need, such as food, medicine or clothing, for free distribution to people in need.

2. Those of any kind, sent free of charge, by persons or entities established outside the Canary Islands, to contribute to the collections of funds developed in the course of occasional demonstrations of beneficence for the benefit of persons in need or to equip and to meet the operational needs and achievement of the objectives of the importing entities.

In any case, the goods referred to in paragraphs 1 shall be excluded.

and 2. (i) for the purpose of this Directive, the Commission shall, in the light of the information provided by the Commission, take into account the information provided by the Commission.

3. Those intended to be distributed, for consumption or use, to the victims of disasters in the Canary Islands, excluding materials for the reconstruction of disaster areas.

4. Those used by relief units arriving in the Canary Islands to assist in any operation of aid or rescue of persons or things, and which are necessary in their intervention.

The exemptions set out in this number 1 will be conditional upon compliance with the following requirements:

(a) Importers may only be public or private entities or establishments duly authorized, for exclusive purposes

charitable or philanthropic.

(b) Imported goods may not constitute the object of an economic activity or activity.

(c) If the reference institutions or establishments ceased to carry out the activities which led to the tax benefit or used the goods imported for purposes other than those which determined the exemption, the tax on the import referred to at the time of the operations indicated.

The provisions of the preceding paragraph shall not apply in cases where the goods imported with exemption were delivered, without any commercial benefit, or provided, leased or transferred to other entities or establishments which are also covered by the exemption of this number 1.

2. Imports of goods specially designed for the education, employment or social promotion of the disabled, imported by entities or establishments dedicated to the assistance of such persons or sent, free of charge, to such persons entities per person or other entities established outside the Canary Islands.

The exemption shall also include spare parts, components or accessories of the goods referred to in the preceding paragraph, as well as the tools or tools intended for the maintenance, control or repair thereof, when they are imported together with them or are identifiable as intended for such goods.

The exemption will be conditional on compliance with the requirements of the previous number 1.

Article 23. Exemptions for imports of goods for educational, scientific and cultural purposes.

Imports of the goods listed below are exempt from the conditions that are also mentioned:

1. Imports free of charge from animals specially prepared for use in laboratories and biological and chemical substances originating in the peninsula, the Balearic Islands, Ceuta, Melilla or other Member States of the Community European Economic Community, provided that some or all of them are imported by public establishments or services dependent on them, devoted to scientific education or research or prior authorization, by private establishments engaged in the same activities.

The import or free import of biological or chemical substances from countries outside the European Economic Community shall be exempt when it is carried out by the establishments referred to in the paragraph This is also exempt from the Arbitrio on Production and Import in the Canary Islands.

2. Therapeutic substances of human origin and reagents for the determination of blood groups or for the analysis of human tissues, imported to be used exclusively for medical or scientific purposes.

For these purposes it is understood by:

: Human blood and its derivatives (total human blood, dried human plasma, human albumin and stable human plasma protein solutions, inmoglobulin, human fibrinogen);

: All reagents of human, plant or other origin, for the determination of blood groups and the detection of blood incompatibilities;

:

All reagents of human, animal, plant or other origin for the determination of human tissue groups.

The exemption will also apply to the special packages essential for the transport of these substances and reagents, as well as to the solvents and accessories necessary for the conservation and use of nails and others.

This exemption will only apply when the following requirements are met:

1. Imports shall be carried out by duly authorised public or private law bodies or laboratories and which in any case is not commercial operations.

2. Imported goods are presented in containers fitted with a special identification label and are used for medical or scientific purposes only.

3. Imported products shall be accompanied by a certificate of conformity issued by an approved body in the country of origin.

3. Goods to be examined, analysed or tested in order to determine their own composition, quality or technical characteristics for the purpose of exclusive information or research of an industrial or commercial nature.

The exemption shall not apply where the examination, analysis or testing of the imported goods constitutes commercial promotion operations themselves.

The benefit referred to in this number 3 shall be conditional upon compliance with the following requirements:

1. Imported goods shall be consumed or completely destroyed in the course of examinations, analyses or tests.

2. Products left over from the operations indicated must be goods with no estimated commercial value. In another case, the tax corresponding to those products shall be entered in the conditions and quantities resulting therefrom.

4. Audiovisual materials of an educational, scientific or cultural nature produced by the United Nations Organization or any of its specialized institutions and listed below, grouped on the basis of the codification of the Tariff of the Arbitration for Production and Import in the Canary Islands.

CN code/Description of the merchandise/

3704 00/Plates, films, paper, cardboard and textiles, photographic, impressed, but not revealed:/

ex 3704 00 10/-Plates and movies.

-Film films, positive, educational, scientific or cultural. /

ex 3705/Placas and films, photographic, impressed and revealed, except the cinematographic ones.

-of an educational, scientific or cultural character. /

3706/Film films, impressed and revealed, with or without sound recording, or with sound recording only:/

3706 10/-width greater than or equal to 35 millimeters

-The others. /

ex 3706 10 99/---The other positive. /-Current movies (whether or not they have sound) that collect events that are current at the time of import and are imported for reproduction in the number of two copies per topic at most.

-File movies (whether or not they have sound) intended to accompany current movies.

-Recreational films especially suitable for children and young people.

Others of an educational, scientific or cultural nature. /

3706 90/-Other:

--Other:/

/---Other positive:/

ex 3706 90 51, ex 3706 90 91, ex 3706 90 99/-Current films (whether or not they have sound) collecting events that are current at the time of import and imported for reproduction in number of two copies per topic at most. /

/-File movies (whether or not they have sound) intended to accompany current movies.

-Recreational films especially suitable for children and young people.

-Others of an educational, scientific or cultural nature. /

4911/Other forms, including prints, prints and photographs.

-Others:/

4911 99/--Other:/

ex 4911 99 90/---Others.

-Microtechnology or other supports used by information and documentation services by computer, educational, scientific or cultural.

-Murals intended exclusively for demonstration and teaching. /

ex 8524/Discos, tapes and other sound recording or similar recording media, including matrices and galvanic moulds for the manufacture of discs, excluding products of Chapter 37:

-of an educational, scientific or cultural character. /

ex 9023 00/Instruments, apparatus or models presented for demonstrations (e.g. in teaching or exhibitions that are not susceptible to other uses).

-Models, models and murals of an educational, scientific or cultural character, intended exclusively for demonstration and teaching.

-Maquettes or reduced visual models of abstract concepts such as molecular structures or mathematical formulas. /

Miscellaneous/Holograms for laser projection.

Multimedia Games.

Scheduled teaching material, including equipment in the form of equipment, accompanied by the corresponding printed material. /

5. Collectors ' items of art of educational, scientific or cultural character, not intended for sale and which are imported by museums, art galleries or similar establishments intended for the exhibition of such objects.

The exemption shall be granted in each individual case by the relevant managing office by application of the person concerned prior to the import.

The Administration may grant a period of two months from the import so that the importer submits the corresponding concession of the exemption if he does not have it at the time of dispatch.

After this period of time without submitting the said document, the tax shall be settled and entered in respect of the import tax and with reference to the time at which the entry was made.

The exemption shall be conditional, in any event, on the importation of goods acquired for free or which, for consideration, the goods would have been delivered by a person or entity which was not employer or professional.

6. Consignments addressed to persons or entities authorized to receive them, from samples of referenced substances authorized by the World Health Organization for the control of the quality of materials used for the manufacture of medicinal products.

Article 24. Exemptions for imports of goods for commercial prospecting purposes.

Imports of the goods listed below are exempt:

1. The samples of goods without an estimable commercial value, which can only be used for the management of orders relating to the goods they represent.

To determine the absence of an estimable commercial value, the rules of the international conventions on samples of goods accepted by Spain and the rules laid down for its development will apply.

2. Advertising forms, such as catalogues, price lists, instructions for use, or commercial brochures referring to the following goods or services:

(a) Goods for sale or rental by a person established on the peninsula, Balearic Islands, Ceuta, Melilla or abroad.

(b) Service stations offered by a person established on the peninsula, Balearic Islands, Ceuta, Melilla or another Member State of the European Economic Community.

(c) Provision of services in the field of transport, commercial insurance or banking offered by a person established in a country outside the European Economic Community.

The exemption from this paragraph is conditional upon compliance with the following requirements:

(a ') The forms must be visible in the name of the undertaking producing, selling or renting the goods or offering the services to which they relate.

b ') Each consignment shall comprise a single document or a single copy of each document if it consists of several documents. However, consignments of several copies of the same document may be sent if their total gross weight does not exceed one kilogram.

c ') The forms shall not be the subject of grouped consignments of the same sender to the same consignee.

Notwithstanding the above, the requirements of points (b) and (c) shall not be required in respect of printed matter relating to goods for sale or hire or services offered by a person established on the peninsula, Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, if such forms have been imported for free distribution.

3. Advertising objects without commercial value can be considered free of charge to customers by their suppliers established outside the Canary Islands.

These objects must clearly and indelibly bear the name of the supplier and present an external aspect that only allows them to be used for the purposes of advertising.

4. The goods listed below are intended for an exhibition or similar event:

1. The small representative samples of goods.

2. Those used exclusively in the conduct of demonstrations or to permit the operation of machines or apparatus presented in such events.

3. The materials of low value, such as paints, varnishes, painted papers, etc., for the decoration of the pavilions of the exhibitors and which are destroyed by employing them in these ends.

4. Advertising forms such as catalogues, leaflets, price lists, advertisements, calendars, photographs not framed, etc., distributed free of charge for exclusive advertising purposes.

In any case, they will be excluded from the goods listed above the alcoholic products, the raw and manufactured tobacco, the fuels and the fuels.

For the purposes of this number 4, exhibitions, fairs, exhibitions or similar manifestations of trade, industry, agriculture or craft or organised shall be understood as similar to the effects of this number 4. mainly for philanthropic, scientific, technical, craft, artistic, educational, cultural, sporting or religious purposes or for the best development of trade union, tourism or relations between peoples. Meetings of representatives of international organisations or groups and ceremonies of official or commemorative nature shall also be included in this concept.

However, such exposures or demonstrations shall not be included in such exposures as are privately held in warehouses or commercial premises for the sale of goods.

The exemption for this number 4 will be conditional upon compliance with the following requirements:

(a) The overall value or quantity of the imported goods shall be in relation to the nature of the event and the importance of the exhibitor's participation.

(b) The samples and the forms may be advertising only, bearing the name of the exhibitor, and may only be used for free distribution to the public in the course of the event.

c) Samples consisting of food products or beverages and materials for demonstrations must be consumed in the course of the demonstration.

Article 25. Exemptions for imports of goods under the regime of passengers and small consignments.

1. Imports of goods under the regime of travellers:

Imports of goods contained in the personal luggage of passengers are exempt from the tax, provided that such goods do not constitute a commercial expedition and the conditions and requirements indicated to them are met. continuation:

1. Where travellers come from countries outside the European Economic Community, the exemption shall apply only if the overall value of the said goods does not exceed per person of the value of 45 ECUs or for travellers. less than 15 years of age, if the value does not exceed the value of 23 ECUs.

2. Where travellers come from the Balearic Islands, Ceuta, Melilla or other Member State of the European Economic Community, the exemption shall be conditional on the following requirements:

(a) that the goods contained in their luggage originate in one of the territories indicated or are in free circulation in them and have been acquired under the general conditions of taxation of the internal market of one of them and have not benefited from the deduction or refund of a tax similar to the Indirect General Tax Canarian.

(b) The overall value of the goods referred to in paragraph 2.

does not exceed per person of the equivalent in pesetas of 600 ECUs or, for travellers under fifteen years of age, that this overall value does not exceed the equivalent in pesetas of 150 ECUs.

3. Where the overall value of the goods contained in the luggage of passengers exceeds the limits set out in paragraphs 1. and 2.

the exemption will be applied to the above limits for goods imported separately from the exemption, taking into account that the value of a single asset cannot be broken down.

4. For the purposes of determining the exemption limits set out in the preceding paragraphs, the value of the goods which are the subject of reimportation resulting from a temporary export shall not be counted.

5. For the purposes of this exemption, the following shall be

:

(a) Personal equipment for travellers: the set of luggage which the traveller will take at the time of arrival at the port or airport of importation of the Canary Islands, as well as those present there after his/her arrival arrival, provided that it justifies that they were registered as luggage accompanied at the place of provenance by the undertaking which transport them.

Non-personal luggage is the portable deposits containing fuels. However, import of the fuel contained in such tanks shall be exempt if the quantity does not exceed 10 litres per means of transport with mechanical motor for road traffic.

(b) Expeditions which are not of a commercial character: those whose importation is made occasionally and which comprise goods of exclusive personal use of the traveller or his family or are intended to be offered as a gift and which by his nature or quantity cannot be presumed to affect a business or professional activity.

6. Without prejudice to the provisions of paragraphs 1. and 2. The following shall also be exempted from imports of the following goods in the quantities indicated, without the value of the goods being calculated in the determination of the limits of the overall value indicated in those paragraphs:

/I Travellers from third countries/II Travellers from the Peninsula, the Balearic Islands, Ceuta, Melilla and other Member States of the EEC/

a) Tobacco products:

Cigarettes/200 units/300 units/

or

Small cigars (maximum weight: 3 grams per unit/100 units/150 units/

or

Cigars/50 units/75 units/

or

Tobacco for smoking/250 grams/400 grams/

b) Alcohol and alcoholic beverages:

Distilled beverages and spirits of an alcoholic strength exceeding 22 per 100 by volume; non-denatured ethyl alcohol of 30 per 100 vol. or more/1 litre in total/1,5 litres in total/

or

Distilled beverages and spirits, wine or alcohol-based snacks, tafia, sake or similar beverages of an alcoholic strength of 22 per 100 vol or less; sparkling wines and liqueur wines/2 litres in total /3 litres in total/

and

Soft wines/2 litres in total/5 litres in total/

c) Perfumes/50 grams/75 grams/

and

Colony waters/1/4 litre/3/8 litre/

d) Coffee/500 grams/1,000 grams/

or

Extracts and essences of coffee/200 grams/400 grams/

e) Te/100 grams/200 grams/

or

Extracts and essences of tea/40 grams/80 grams/

Travellers under seventeen years of age will not benefit from the exemptions set out in points (a) and (b) above.

Travellers under the age of 15 will also not benefit from the exemption referred to in point (d) above.

The exemption limits provided for in the preceding paragraphs shall be reduced to one-tenth of the quantities in which they are indicated when the goods to which they relate are imported by employees of the means of transport used in the international or assimilated traffic.

2. Imports of small consignments.

Imports of small consignments that do not constitute a commercial expedition are exempt from the tax and are sent by a private individual to another person in the Canary Islands.

For these purposes small shipments without commercial character shall be considered for which the following requirements are met:

First. -That they are imported occasionally.

Second. -That they understand goods of exclusive personal use of the recipient or his family and that by their nature or quantity their affectation to a business or professional activity cannot be presumed.

Third. -To be sent by the sender for free.

Fourth. -That the overall value of the same does not exceed the equivalent in pesetas of 45 ECU when they are sent from a country not belonging to the European Economic Community.

Fifth. -As for small shipments from the peninsula, Balearic Islands, Ceuta, Melilla or a Member State of the European Economic Community, the following conditions are met:

(a) that the goods to which they relate have been acquired under the general conditions of taxation of the internal market of the territory of origin and have not benefited from the deduction or refund of a tax similar to that of the General Indirect Tax.

b) That its overall value does not exceed the equivalent of 110 ECU.

Sixth. -They comprise the goods listed below when they are imported into the quantities that, in each case, are indicated:

/Small shipments from third countries/Small shipments from EEC Member States/

a) Tobacco products:

Cigarettes/50 units/300 units/

or

Small cigars (maximum weight: three grams per unit)/25 units/150 units/

or

Cigars/10 units/75 units/

or

Tobacco for smoking/50 grams/400 grams/

b) Alcohol and alcoholic beverages:

Distilled beverages and spirits of an alcoholic strength exceeding 22 per 100 vol.; non-denatured ethyl alcohol of 80 per 100 vol. or more/One bottle standar (up to 1 litre)/1,5 litres in total/

or

Distilled beverages and spirits, wine-based or alcohol-based snacks, tafia, sake or similar drinks, the strength of which does not exceed 22 per 100 vol.; sparkling wines, liqueur wines/A standar bottle (up to 1 litre)/3 litres in total/

and

Soft wines/2 litres in total/5 litres in total/

c) Perfumes/50 grams/75 grams/

and

Colony waters/0.25 litres or 8 ounces/3/8 litres/

d) Coffee/500 grams/1,000 grams/

or

Coffee extract and essences/200 grams/400 grams/

e) Te/100 grams/200 grams/

or

Extracts and essences of tea/40 grams/80 grams/

If the products referred to in this paragraph are presented in quantities exceeding those indicated, the import of the products shall be totally excluded from the exemption.

3. Also, commercial imports of goods whose overall value does not exceed the value of 14 ECU in pesetas are exempt from the tax.

The following products are excluded from this exemption:

a) Those containing alcohol.

b) Perfumes and colony waters.

c) The raw and manufactured tobacco.

d) Goods subject to a correspondence sale.

Article 26. Exemptions in the case of imports of goods intended for bodies responsible for the protection of intellectual or industrial property.

Imports of trademarks, models or drawings, as well as the files relating to the application for patents of invention or the like, intended for the competent bodies in the field of protection of the copyright or industrial or commercial property rights.

Article 27. Exemptions in the import of fuels.

They are exempt from the tax on imports of the fuels contained in the tanks of the commercial motor vehicles and of tourism and in those of the containers for special uses, which are introduced in the territory for the application of the tax, under the conditions and with the following limits:

(a) Fuel contained in the normal tanks of motor vehicles and special purpose containers:

(a) Industrial motor vehicles from the peninsula, the Balearic Islands, Ceuta, Melilla or other Member States of the European Economic Community and intended for the transport of persons: up to 600 litres.

b ') Other industrial vehicles: up to 200 litres.

c ') Containers for special uses: up to 200 litres.

In the case of vehicles other than those mentioned in the preceding letters, no limitation shall be applied in relation to the fuels contained in the normal tanks of such vehicles.

(b) fuels contained in portable tanks of passenger cars: up to 10 litres.

The exemption shall also apply to lubricants on board vehicles up to the limits corresponding to the normal requirements of their operation during the course of the course.

For the purposes of this article it is understood by:

(a) Industrial motor vehicle: any motor vehicle suitable for road traffic which, by its characteristics and equipment, is suitable and is effectively intended for transport, with or without remuneration, of more than nine persons, including the driver, or goods, as well as other special uses other than transport.

(b) Motor vehicle for tourism: any motor vehicle, suitable for road traffic which is not covered by the concept of an industrial motor vehicle.

c) Special purpose containers: any container equipped with specially adapted devices for refrigeration, oxygenation, thermal insulation or other systems.

(d) Normal deposits: deposits, including gas, incorporated in a fixed manner by the manufacturer in all series vehicles or in containers of the same type, the provision of which permits direct use of the fuel for the traction of the vehicle or, where appropriate, for the operation of the cooling systems or any other with which the vehicle is equipped or with the special purpose containers.

Fuel admitted with exemption may not be used in vehicles other than those in which they were imported, extracted from such vehicles or stored, except where the vehicles were the subject of a vehicle. (a) the necessary repair or transfer of a fee or a charge by the beneficiary of the exemption. If the conditions indicated are not met, the quantities of those products which have received the aforementioned irregular destinations shall be subject to the tax.

Article 28. Exemptions for imports of official publications, printed and miscellaneous documents.

Imports of the documents and publications listed below will be exempt:

1. The tourist documentation that is specified below:

(a) Official publications of a tourist nature, such as lists and yearbooks of hotels in the Balearic Islands, Ceuta, Melilla or any other Member State of the European Economic Community or of third countries or the catalogue of timetables relating to the transport services provided from those territories or countries, where they are intended for free distribution and not containing more than 25 per 100 commercial advertising.

(b) Technical material sent to the representatives of official tourism bodies for the performance of their duties, such as yearbooks, telephone or telex lists, lists of hotels or documentation on museums, universities or similar institutions.

c) Documents such as brochures, books, magazines, guides, advertisements, photographs, maps, calendars, etc., for free distribution for general propaganda purposes on trips to the peninsula and Balearic Islands, Ceuta, Melilla or any Member State of the European Economic Community or of third countries or to attend events of a cultural, sporting, tourist, religious or professional nature, where they do not contain more than 25 per 100 of private commercial advertising.

2. Photographs, slides and clichés for photographs, including those bearing legends, sent to press agencies or to editors of newspapers or periodicals.

3. Objects intended to serve as evidence or for similar purposes before the Courts or other official bodies.

4. The following documents and articles:

(a) Documents sent free of charge to public services in the Member States of the European Economic Community based in the Canary Islands.

b) Publications of foreign governments and publications of international public bodies to be distributed free of charge.

(c) Voting ballots for elections organized by entities established on the peninsula, Balearic Islands, Ceuta, Melilla or any Member State of the European Economic Community or in third countries.

(d) Recognition of signatures and printed circulars relating to signatures, issued in the framework of the usual exchange of information between public services or banking establishments.

(e) Official forms of character addressed to the central banks of the Member States of the European Economic Community.

(f) Reports, reports of activities, information notes, prospectuses, subscription bulletins and other documents issued by companies not based in the Canary Islands and addressed to holders or subscribers of securities issued by such companies.

g) The perforated sheets, sound records, microfilms and other recorded media used for the transmission of information, transmitted free of charge to the recipient.

(h) The files, files, forms and other documents intended for use in international meetings, conferences or congresses, as well as the minutes and summaries of these events.

(i) drawings, technical drawings, copies, descriptions and other similar documents imported for the procurement or execution of orders on the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the Community European Economic and/or Third Countries or to participate in competitions organized in the territory of the Canary Islands.

(j) Forms intended for use in examinations organised in the territory of the Canary Islands by institutions established in another country or on the peninsula, Balearic Islands, Ceuta and Melilla.

k) Forms intended to be used as official documents in the international traffic of vehicles or goods, in compliance with international conventions.

(l) Forms, labels, transport titles and similar documents issued by transport companies or hotel companies established on the peninsula, Balearic Islands, Ceuta, Melilla or in a foreign country with destination the travel offices established in the territory of the Canary Islands.

m) Forms and titles of transport, bills of lading, carrying letters and other commercial or office documents already used.

n) Official forms issued by national or international authorities and printed according to international models directed by associations of the peninsula, Balearic Islands, Ceuta, Melilla or abroad corresponding associations located in the Canary Islands for distribution.

n) Official publications constituting the means of expression of the public authority of the country of export, of international bodies, of public entities and bodies governed by public law, established in the territory for export as well as printed forms distributed by foreign political organisations officially recognised as such in the Member States of the European Economic Community on the occasion of elections to the European Parliament or elections nationals organised from the country of origin, provided that such publications and (a) in the case of a similar tax in the country of export and have not been the subject of export relief.

Article 29. Reimports of goods exempt from the tax.

The following operations are exempt from the tax:

1. Reimportation of goods temporarily exported to third countries or temporarily sent to the peninsula, Balearic Islands, Ceuta or Melilla or another Member State of the European Economic Community, where the following conditions are met:

1. That the goods have not been acquired under the exemptions provided for in Articles 14 and 15 of this Regulation.

2. That the goods have not been delivered since the departure of the goods from the territory of the Canary Islands until their subsequent entry into that territory.

3. The reimportation of the goods shall be carried out by the same person whom the Administration authorized the departure of the goods.

4. That the goods are reimported in the same state in which they came out, without having suffered any other demerit than that produced by the use authorized by the Administration, including the supposed performance of lucrative works outside the territory of the islands Canary Islands.

Without prejudice to the following number 3, where the goods are temporarily exported abroad or temporarily sent to the peninsula, Balearic Islands, Ceuta or Melilla to be repaired, or for the incorporation of other goods, their re-importation shall be subject to the payment of the tax corresponding to the goods and services incorporated outside the territory of the Canary Islands in the form provided for in Article 53 (3) of the This Royal Decree.

By way of derogation from the preceding paragraph, the references to the incorporation of goods or services effected outside the territory of the Canary Islands shall be exempt in the following cases:

(a) Where they are made free of charge, under a contractual or legal obligation to guarantee or as a result of a manufacturing vice.

(b) When carried out on domestic vessels or aircraft for which the delivery or import is exempt from the Indirect Canarian General Tax pursuant to Articles 15 and 19 of this Regulation.

2. The reimportation of the offal and the remains of national vessels, wrecked or destroyed by accident outside the territory of the Canary Islands, after documentary evidence of the claim and the membership of such goods to the vessels (i)

3. The reimportation of goods by whom it temporarily sent them to the peninsula, the Balearic Islands, Ceuta, Melilla or another Member State of the European Economic Community, where such goods have been the subject of the said territories for a job taxed by a tribute analogous to the Indirect General Tax Canarian without the right to refund or deduction. This must be confirmed by the corresponding certification, issued by the authorities of the country or territory in which the work was carried out.

Article 30. Imports of fishery products.

Imports of fishery products made at ports are exempt when the following requirements are met:

1. Imports shall be carried out by the shipowners themselves of the fishing vessels or on behalf of and on behalf of the vessels, and shall proceed directly from the catches taken by themselves.

2. That such products have not been the subject of any processing operation before they are imported.

For the purposes of the preceding paragraph:

(a) No processing operations are considered to be carried out prior to the first delivery of the products indicated for the purpose of preserving or conditioning the products for placing on the market, such as cleaning products, Cutting, sorting and packing, cooling, freezing of fish and other similar products.

(b) The processing of cooking, smoking, salting and, in general, the manufacture of preserved fish of any kind is considered to be processing.

Article 31. Exemptions from the provision of services related to imports.

Services, other than those covered by Article 11 of this Regulation, whose consideration is included in the taxable amount of the imports of goods to which they relate, are exempt from the tax. Article 52 of Regulation (EC) No 139/2014 is hereby amended.

These exemptions will only apply when, within the period to be fixed by the Canary Tax Administration, the importer refers to the person who provides the services a copy of the administrative document in which it is proved that the consideration of the same has been included in the taxable amount determined for the liquidation of the tax corresponding to the importation of the goods to which they relate.

Article 32. Exemptions from imports under diplomatic or consular arrangements.

Imports that are made under the diplomatic or consular regimes are exempt, in accordance with the applicable legislation.

This exemption includes private motor vehicles, furniture and equipment objects and other effects intended for the service or furnishing of diplomatic or consular missions established in the the territory of the Canary Islands or intended for the particular use of officials or employees of such missions or consulates, who are recognised in the lists given by the countries to which they represent and where there is reciprocity.

Article 33. Imports of goods exempted under international conventions.

Imports that are listed below are exempt from the tax:

1. Those carried out by international bodies recognised by Spain, including those of a non-governmental nature, or by persons officially designated in them, with the limits and under the conditions laid down in the conventions for which such bodies are established. bodies or agreements on the premises of such bodies.

2. Those carried out under cover and in the terms provided for in the international conventions ratified by Spain in matters of cultural, scientific or technical cooperation.

Article 34. Exemptions in special import arrangements.

1. The following operations are exempt when the conditions are met which, in each case, are specified:

1. Imports of goods, whatever their origin, made under the special transit arrangements, temporary importation, deposit, inward processing in the suspension system, with the exception of advance export, and processing under customs control.

They will have to consider temporary imports, for the purposes provided for in this article, the imports and deliveries of vehicles that can be regulated in a tourist registration system.

These exemptions shall be conditional upon compliance with the requirements laid down in the state and Community customs legislation of each of the abovementioned schemes, which shall apply for the purposes of this Regulation. tax, irrespective of whether the goods come from the European Economic Community or from third countries.

The Canary Tax Administration may require the importer to provide sufficient security to secure the payment of the tax liability that is payable as a result of the non-compliance with the requirements to which it is refers to the previous paragraph.

The secondary compensating products obtained in the processing or processing of the inward processing regime are exempted from this exemption.

Temporary imports from third countries which are taxed on a part of the import duties corresponding to their import into consumption will be taxed in the same proportion by the General Tax. Indirect Canarian. The same criterion applies in respect of temporary imports from the Member States of the Community which are partially taxed by the Arbitrio on the production and import of the Canary Islands.

To be included among temporary imports not totally or partially exempt, the following operations:

1. Provisional flag authorisations in Spain for foreign vessels to carry out specific activities or traffics for a given time in the territorial scope of the tax.

2. Authorizations to carry out cabotage operations in the same territories, granted in favour of foreign vessels.

The re-export or import into consumption of the goods referred to in this number 1 shall determine the completion of the corresponding customs procedures with the refund to the person concerned of the security required. If the operations for the discharge of these schemes are carried out after the end of the statutory time-limits, interest shall be required for the time taken from the entry of the goods into the territory of the Canary Islands and the Penalties to be applied.

2. Imports of goods which are placed in free zones or warehouses or on a deposit basis, while remaining in such situations.

This exemption will be conditional upon compliance with the following requirements:

(a) that the imports are carried out in compliance with Community legislation corresponding to those areas, which shall be applicable, irrespective of whether such imports come from the European Economic Community or from third countries.

(b) that the goods entered in the said areas are not used or intended for final consumption in those areas.

3. The provision of services directly related to the exempted imports covered by paragraphs 1. and 2. prior to the operation, including transport and ancillary operations to them.

The exemption does not apply to the provision of services for the purpose of the use or disposal of goods imported under the temporary importation procedure.

4. Services provided by intermediaries acting on behalf and on behalf of third parties when they intervene in the operations described in paragraphs 1. 2. and 3. previous.

2. The exemption provided for in Article 1 of this Article shall be exempt from the exemption provided for in Article 11 of this Regulation.

Article 35. Other exemptions.

You will be exempt from importing the goods listed below:

1. Newspapers, books and magazines, as well as the complementary elements that are delivered jointly with those by unit price.

Shall be considered to be complementary to the magnetophonic tapes, discs, video cassettes and other sound media or similar videomagnetics whose acquisition cost does not exceed 50 per 100 of the unit price to the public.

2. Water, except mineral and gaseous water.

3. The medicines. The invention relates to pharmaceutical specialties, masterways and official preparations for preventing, diagnosing, treating, alleviating or curing diseases or diseases of man or animals.

4. Products recorded by means of 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 and the heading , provided that are imported by:

(a) Establishments or bodies declared of public utility, of educational or cultural nature.

(b) By other educational or cultural establishments or bodies where the imports are authorized for this purpose by the Canary Tax Administration.

Chapter III

Place of realization of the taxable event for the concept of supplies of goods and services in international relations and with the peninsula, Balearic Islands, Ceuta and Melilla

Article 36. Place of delivery of the goods.

In the case of international relations or, where appropriate, with the peninsula, Balearic Islands, Ceuta or Melilla, the following rules shall apply for the determination of the place of delivery of the goods.

1. Rule of thumb:

Deliveries of goods shall be construed as being made available to the acquirer.

2. Special rules:

1. The supply of personal movable property which is situated in the factory, warehouse or warehouse, must be carried out for the purpose of making it available to the acquirer, shall be understood as being in the place where the goods are located at the time of commencement the dispatch or transport, without prejudice to paragraph 2. next.

By way of derogation from the preceding paragraph, where the goods to be imported are situated on the peninsula, the Balearic Islands, Ceuta, Melilla, any other State at the beginning of the dispatch or transport Member of the EEC or in third countries, deliveries of the same made by the importer and, where appropriate, by successive transfers shall be understood as being carried out in the Canary Islands.

2. Where the goods are the subject of installation or assembly before they are made available, the delivery shall be deemed to be carried out at the place where the installation or assembly is completed.

The provisions of the preceding paragraph shall apply only in cases where the installation or assembly operations determine the immobilization of the delivered goods and, in addition, are not notoriously irrelevant.

Installation or assembly operations shall be considered irrelevant, the cost of which does not exceed 15 per 100 of the total consideration corresponding to the delivery of the installed goods.

3. The supply of immovable property shall be understood as where it radiate the same.

Article 37. Place of performance of the services.

General Rule.

For the purpose of determining the place of performance of services in relations with the peninsula, the Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or with third countries shall apply. the following rules:

1. The services shall be considered to be provided in the place where the seat of the economic activity of the person is situated.

For the purposes of this tax, the location of the economic activity in the territory where the person concerned centralizes the management and the usual exercise of his business or professional activity shall be understood, provided that, in addition, lack of permanent establishments in other territories.

2. If the taxable person carries out his business in the Canary Islands and in the Canary Islands, the Balearic Islands, Ceuta, Melilla, any other Member State of the EEC or in third countries, the services in question shall be read the permanent establishment from which the provision of the services is carried out.

3. In the absence of the above criteria, the service shall be deemed to be the place of the address of the person providing the services.

Article 38. Concept of permanent establishment.

For the purposes of this tax permanent establishment shall be considered any fixed place of business where the taxable person carries out business or professional activities.

In particular, they will have this consideration:

(a) The headquarters, branches, offices, factories, workshops, facilities, warehouses, stores and, in general, the agencies or representations authorized to hire in the name and on behalf of the taxable person.

(b) Mines, quarries or scorials, oil or gas wells or other natural product extraction sites.

(c) Construction, installation or assembly works carried out by the taxable person and whose duration exceeds 12 months.

(d) Agricultural, forestry or livestock holdings.

Article 39. Place of performance of the services.

Special Rules.

1. Services directly related to immovable property shall be understood as being in the place where they radiate such goods.

They shall be considered directly related to real estate, inter alia, the leases of such assets, including those of furnished dwellings; services relating to the preparation, coordination and execution of the real estate buildings; technical buildings relating to such buildings, including those provided by architects, apparatus and engineers; those of mediation in real estate transactions; management of immovable property and property transactions; rental of security boxes, and the use of such operations of the toll roads.

2. Transport shall be deemed to have been carried out on the Canary Islands or other territories on the part of the journey carried out in each of them, including its airspace and waters.

3. The following services shall be understood to be provided where the following services are physically carried out:

1. Those of a cultural, artistic, sporting, scientific, teaching, recreational or similar character, including those of their organisation, as well as the other accessories of the former, including public spectacles of any kind and gambling.

2. The hotel, restaurant or camping and, in general, the supplies of drinks or food to consume in the same place.

3. Accessories to transport, such as loading and unloading, transhipment, storage, storage, even in cold rooms and similar services relating to goods in the course of transport operations.

Mediation services will not be considered as accessories to the transports.

4. Those carried out on movable tangible property, including the construction, processing and repair thereof, as well as the expert reports, opinions and assessments relating to such goods.

4. Leases of means of transport.

The determination of the place of completion of the means of transport leases shall be determined in accordance with Articles 37 and 38 of this Regulation.

However, such leases will be understood to be where the goods are actually used in the following cases:

1. Where the establishment from which it is situated outside the European Economic Community and the means of transport leased are used exclusively within the territory of that Community.

2. Where the establishment from which it is situated within the European Economic Community and the means of transport are used exclusively outside that territory.

5. The services listed below shall be regarded as being provided where the seat of the economic activity or the permanent establishment of the recipient of those services or, failing that, at the place of his domicile.

1. The disposals and concessions of copyrights, patents, licenses, trademarks and other intellectual or industrial property rights.

2. The assignment or grant of funds of trade, exclusive of purchase or sale, or of the right to exercise a professional activity.

3. The services provided under the advertising, advertising, advertising, advertising, advertising and advertising contracts.

4. The professional services of advice, audit, engineering, study cabinet, lawyers, consultants, accounting or tax experts and other analogues, except those included in the number 1 of this article.

5. The processing of data by computer procedures and the provision of information, including procedures and experiences of a commercial nature.

6. Translation, correction or composition of texts, as well as those provided by interpreters.

7. The insurance, reinsurance, capitalisation and financial transactions described in Article 11 (1) (16). and 18. of this Regulation.

8. The management of companies by means of a computer.

9. The disposals of staff.

10. Leases of movable tangible property that are not means of

transport.

11. The obligations of not fully or partially to exercise any of the services mentioned in this issue 5.

12. Mediation and management in the operations defined in the preceding letters of this number 5, when the intermediary or manager is acting on behalf and on behalf of others.

The provisions of this number shall not apply where the consignee is domiciled in a Member State of the European Economic Community and is not an employer or a professional or the services provided are not related to the exercise of the business or professional activity of the same.

The burden of proof of the recipient's condition is for the taxable person who provides the service.

Chapter IV

Devengo of tax

Article 40. Accrual of the tax on the supply of goods and services.

1. The tax will be payable:

1. In the supply of goods, when they are placed in the possession and possession of the acquirer or when they are carried out in accordance with the legislation applicable to them.

Dealing with the supply of goods that consist of the transmission of the power of disposal on body goods, if the goods are placed in the possession of the acquirer before the translational effects of the delivery occur, the Tax shall be payable at the time of such effects.

By way of derogation from the foregoing paragraphs, in the supply of goods made under contracts of sale within a time period with a pact for the reservation of the domain or the lease of goods with a transfer clause of the property binding on both parties, the tax shall be payable where the goods constituting the object are placed in the possession of the acquirer or, if the goods are in possession of the acquirer before, when the clause is formalised binding transfer of ownership.

2. In the case of services, where the taxable transactions are provided, executed or carried out.

However, in the case of the execution of works in the provision of materials, at the time when the goods to which they relate are placed in the possession of the owner of the work.

3. In the case of transfers of goods between the principal and the commission carried out under contracts of sale commission, where the latter acts in his own name, at the time when the commission carries out the goods.

4. In the case of transfers of goods between the comionist and the principal carried out under contracts of commission of purchase, when the former acts in his own name, at the time when the commission is given the goods to which they relate.

5. In the case of leases of goods, supplies of electrical energy, gas and other analogues, in the provision of telephone services, in the transfer of copyright under an editorial contract on effectively realized sales and, in (a) in the case of transactions in the future, at the time when the share of the price covering each collection is payable.

The supply of goods carried out as a result of leased-or-sale contracts referred to in Article 7 (2) (8.) of this Regulation is exempted from the provisions of the preceding paragraph. in respect of which the third subparagraph of paragraph 1 (1) of that number applies.

2. In the case of transactions subject to taxation arising from advance payments prior to the taxable event, the tax shall be payable at the time of the total or partial recovery of the price for the amounts actually received.

Article 41. Accrual on imports.

1. In the imports of goods the tax is stopped and the obligation to contribute at the moment in which the importers request from the Tax Administration the dispatch of import of the goods is born, before the conditions have been fulfilled laid down in the applicable legislation.

2. In the final importation of the goods in the arrangements or situations referred to in Article 34 of this Regulation, the tax due shall take place at the time when such importation is applied for when they are met, also, the conditions required by the applicable legislation.

In the event of failure to comply with the conditions governing the granting of any of the schemes referred to in the preceding paragraph, at the time of such failure to comply or, where appropriate, at the time when the application of these schemes was authorised.

3. For transactions defined as imports in Article 9 (2), (2), (3), (3), (4). and 5. of this Regulation, the accrual shall take place at the time when the disaffection, changes in conditions or acquisitions referred to in those paragraphs, respectively, take place, in accordance with the provisions of paragraph 3 of this Regulation. Article.

Chapter V

The taxable person

Article 42. Taxable persons in the supply of goods and services.

1. They are taxable taxable persons:

1. Natural or legal persons who have the status of employers or professionals and make supplies of goods or provide services subject to the tax.

2. Employers or professionals for whom the transactions are to be carried out when they 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 or their registered office shall be deemed to be established in a given territory. Tax, even if they do not carry out the operations which are subject to such establishment in the Canary Islands.

2. The following are considered to be taxable persons, the communities of property and other entities which, lacking legal personality, constitute an economic unit or a separate property liable to be imposed, when they carry out transactions subject to the tax.

Article 43. Impact of the tax.

The taxable persons referred to in Article 42 (1) (1). and number 2 of this Regulation, shall have full effect on the amount of the tax on the person for whom the taxable transaction is carried out, the latter being obliged to bear it in so far as the impact is in accordance with the provisions of this Regulation, whatever they were

the existing stipulations between them.

In the supply of goods and services to the State and its autonomous bodies, to the Autonomous Communities, Local Corporations and the Social Security Management Entities, the taxable persons shall be deemed to be taxable persons. the tax, when formulating its economic proposals, even if they are verbal, have included within the same the Indirect General Tax Canarian that must nevertheless be passed on as an independent departure, where appropriate, in the documents that are submitted for recovery, without the overall contracted amount experiencing an increase as a consequence of the recording of the tax.

The corresponding specifications shall contain the express prevention of the fact that, for all intents and purposes, the offers of the business owners understand not only the price of the contract, but also the amount of the tax.

Article 44. Formal requirements for the impact.

1. The impact of the tax must be effected by invoice or analogue document.

For these purposes, the share of the impact must be reported separately from the tax base, even in the case of administratively fixed prices, indicating the tax rate applied.

The operations in respect of which, in accordance with the provisions of this Regulation, the issue of invoices or other documents are not mandatory, are exempted from the provisions of the preceding paragraphs of this number.

2. Where the recording of the tribute has an impact on the development of the business or professional activities, the Economic and Finance Ministry of the autonomous government of the Canary Islands may, after the application of the affected persons or sectors, the impact of the tax on the price, stating the expression and the tax rate applied.

This authorization will not be necessary in the operations determined by the Ministry of Economy and Finance of the autonomous government of the Canary Islands.

3. The impact shall be entitled to require the invoice to be issued in accordance with the number 1 of this Article and the rules governing the duty to issue and deliver an invoice which is the responsibility of employers and professionals, provided that credit your condition as a taxable employer or a taxable person, and the applicable fees are deductible.

4. Disputes which may arise with reference to the impact of the tax, both as regards the origin and the amount of the tax, shall be considered as tax in nature for the purposes of the corresponding claims on the road economic-administrative.

Article 45. Temporary requirements of the impact.

1. The impact of the tax shall be effected at the time of issuing and delivering the corresponding invoice or similar document, provided that five years have not elapsed since the date of the accrual.

2. However, where the addressees of the transactions subject to the tax have the status of employers or professionals, the effect of the tax may not be effected after one year from the date of the tax due or, where appropriate, the realisation of the fact that the effect of the change in the tax rate is affected.

3. The recipient of the transaction taxed by the Indirect General Tax will not be obliged to bear the impact of the transaction before the tax becomes due.

Article 46. Rectification of the tax quotas passed on.

1. The correction of the tax rates passed on must be effected in cases of error of fact or of the right to fix them, where the determining circumstances of their value vary or, finally, where the transactions taxed by the tax.

2. The correction shall be made immediately after the error has been reported or the other circumstances indicated in the preceding number 1 shall occur, provided that no more than five years have elapsed from the date on which the tax was due in respect of the operation taxed or, where appropriate, of the date on which the changes in the consideration of the consideration or determinants of the ineffectiveness of the taxable transaction have occurred.

3. By way of derogation from the preceding number 2, in the case of errors in the settlement of the shares passed on or where no quota has been passed on, the amendment which implies an increase in the amount may not be effected after the one year after the issue of the invoice or equivalent document when the addressees are either business or professional taxable persons, or after the delivery of such documents in other cases.

4. The correction of the impact of the contributions referred to in this Article may only be made subject to the formal requirements to be determined by the Canary Tax Administration.

Article 47. Taxable persons responsible for the tax on imports of goods.

1. In the case of imports of goods, the taxable person is the natural or legal person, as well as the entities referred to in Article 33 of the General Tax Law, which makes such imports.

They are considered importers:

1. The addressees of the imported goods, whether they are acquirers, transferee or owners of the goods, or consignees acting in their own name on the importation of the goods.

2. Travellers, for the goods they drive when entering the territory of the Canary Islands.

3. The owners of the goods in the cases not referred to in the preceding paragraphs.

2. They will be responsible for the tax:

1. Solidarily:

(a) The managing associations in the cases determined in the international conventions.

(b) Transport undertakings, when acting on behalf of third parties under international conventions.

(c) Customs agents and persons authorized to file and process declarations for the dispatch of goods, when they are involved in imports in their own name and on behalf of their customers.

2. The persons referred to in point (c) of the first subparagraph of Article 2 (1) (c) shall be liable to act in the name and on behalf of their principal.

3. The responsibilities laid down in No 2 shall not be met by the tax debts which are shown as a result of actions taken outside the eligible areas for the recognition of goods in imports.

Chapter VI

The tax base

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

1. The taxable amount of the tax is the total amount of the consideration of the transactions which are subject to the tax from the recipient or third parties.

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

1. Fees for commissions, packaging, packaging, shipping and transportation, insurance, advance benefit premiums, interest on deferred payments and any other cash on behalf of those who deliver or provide the service, both of the main benefit as well as the ancillary services to it.

2. Interest accrued as a result of the delay in the payment of the price.

3. Subsidies directly linked to the price of 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.

4. The taxes and levies of any kind that fall on the same taxable transactions, except the Indirect General Tax Canarian and the Arbitrio on the production and the import.

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

2. Discounts and allowances which are justified by any eligible means of proof in law and which are granted prior to or at the same time as the operation is carried out and on the basis of 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 recorded by the person who delivers the goods or provides the services in the corresponding specific accounts. The taxable person shall be obliged to justify the actual amount of such expenditure and may not deduct the tax which would have been imposed on 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 carried out on any of the islands, in the case of goods imported or manufactured on another island other than the Canary Islands, the expenditure at ports or airports shall not be included in the taxable amount. Secure and precise freight rates for the transfer from the last island to the delivery.

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

Except as provided in the preceding paragraph:

1. Cases where the express impact of the tax is not compulsory.

2. The assumptions referred to in paragraph 5 (2) of this Article.

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 which may be used for re-use.

2. Discounts and bonuses awarded after the operation has been carried out which can be checked by means of the accounts.

2. Where, by a firm, 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. In the cases referred to in the preceding numbers of this Article, the taxable person is obliged to issue and send to the recipient of the operation a new invoice or document in which it is rectified or, where appropriate, the quota is cancelled, in the form which the autonomous government of the Canary Islands is planning to regulate.

The reduction in the tax base referred to in the previous numbers 1 and 2 or, where appropriate, the increase in the quotas to be deducted by the consignee for the issue and the sending of the document to rectify the invoices previously issued, specifying the number and date of the rectified invoices. In the case of discounts or bonuses by volume of transactions and in other cases which are authorized by the Economic and Finance Ministry of the autonomous government of the Canary Islands, the specification of the rectified invoices will not be necessary. the simple determination of the year to which they relate is sufficient.

4. In cases where the amount of consideration is not known at the time of the tax due, the taxable person shall fix it provisionally by applying the rules of the logic, without prejudice to his or her rectification when that amount is known.

Article 50. Tax base. Special rules.

1. In the case of transactions the consideration of which does not consist of money shall be deemed to be a taxable base which would have been agreed under normal market conditions, between independent parties.

However, if the consideration consists partially in money, the result of adding to the value in the market of the part of the consideration the amount of the money part of the money will be considered tax base. provided that the result is significantly higher than that determined by application of the provisions of the preceding paragraph.

2. Where goods or rights of different types are transmitted in the same operation and for a single price, the taxable amount corresponding to each of them shall be determined in proportion to the market value of the goods or rights transmitted.

3. Where there is a link between the parties involved in the transactions subject to the tax, prices which are significantly lower than normal prices are agreed, even where it is agreed that there is no consideration, the tax base may not be less than that which would result from the application of the criterion set out in the previous 1.

The linkage may be tested by any of the eligible media.

For these purposes, it will be assumed that there is linkage:

(a) In the event that one of the intervening parties is a taxable person of the Company Tax, when it is thus deducted from the regulatory rules of that tax.

(b) In transactions between taxable persons and persons linked to them by employment or administrative relations.

(c) In the operations performed between the taxable person and his or her spouse or their consanguine relatives up to and including the second degree.

4. In the transfer of goods from the principal to the commission under contracts of sale commission in which the commission acts on its own behalf, the tax base shall be constituted by the consideration agreed by the committee less than the amount of the commission.

5. In the transfer of goods from the commission to the principal, pursuant to purchase commission contracts in which the commission has acted on its own behalf, the tax base shall be constituted by the consideration agreed by the comionist plus the amount of the commission.

6. In the case of services carried out on behalf of the third party, where the person providing the services acts on his own behalf, the taxable amount of the transaction between the principal and the commission shall be the consideration of the The Commission has concluded that the Commission will not be involved in the matter.

7. In the case of acquisitions of services carried out on behalf of third parties, where the person acquiring the services acts in his own name, the taxable amount of the operation carried out between the commission and the principal shall be the consideration of the consideration. of the service agreed by the commission plus the amount of the commission.

8. In the case of transactions the consideration of which has been fixed in foreign currency, the value of the value of the consideration in Spanish currency shall be effected by applying the exchange rate fixed by the Banco de España corresponding to the day of the accrual of the tax or, failing that, the immediate past.

Article 51. Determination of the tax base.

1. In general, the taxable amount shall be determined on a direct estimate basis, without any exceptions other than those laid down in this Regulation and in the rules governing the indirect estimation of taxable bases.

2. In the case of a failure to present the statements-settlements, the Government of the Autonomous Community of the Canary Islands will be regulated in relation to the provisional liquidation of its trade.

Article 52. The tax base on imports of goods. General rule.

In goods imports, the tax base will result from adding to the the following concepts as long as they are not included in the same:

1. Any tax or tax due on the occasion of the importation, with the exception of the Indirect General Tax Canarian, the Arbitrio on the production and import and the rights of the special Tarifa of the island Arbitrio to the entrance of goods.

2. Ancillary and complementary expenditure, such as commissions, packages, ports, transport and insurance to be incurred from the entry into the Canary Islands to the first place of destination within those territories.

In particular, the following expenses are included:

(a) The fees for the operation of port and airport works and services.

b) Rates for general and specific port and airport services.

(c) Fees for the recognition of imported goods (sanitary, veterinary, commercial, etc.).

(d) The legally enforceable fees relating to obtaining the documents necessary to make the import dispatches.

e) The deferred payment interest from the importer.

(f) Professional fees involved in imports, such as customs agents, commission agents and freight forwarders.

g) Transport, insurance, unloading, handling, weighing, measuring, storage, safekeeping, parking and any other that occur until unloading at the first place of destination.

For these purposes, the first place of destination shall be considered as the first place of destination in the transport document under which the goods are introduced into the Canary Islands and, in the absence thereof, the first place in which the goods are carried out. operations of unbundling or separation of cargo within those territories. However, where the place of destination is located on any island and the entry is made on a different island from the destination, no additional costs shall be added to the in the preceding paragraph, where they have been object to allow the transfer of the goods to the island of destination.

Article 53. The tax base on imports of goods. Special rules.

1. The tax base on imports into consumption of goods which have previously been placed under the arrangements referred to in Article 54 of this Regulation shall be determined as follows:

1. In the case of goods originating in the peninsula, Balearic Islands, Ceuta, Melilla or abroad, the tax base shall be calculated in accordance with the provisions of the previous Article.

2. If the goods are originating in the Canary Islands and have been delivered free of charge, the taxable amount shall be the sum of the consideration of such delivery and of the services directly related thereto, determined in accordance with the rules laid down in Articles 48, 49 and 50 of this Regulation.

3. Where the goods imported into consumption are, in part, constituted by goods covered by paragraph 1. and, in part, for goods covered by paragraph 2. the taxable amount shall be the sum of the amount corresponding to each of them, determined in accordance with the rules referred to in paragraphs 1. or 2. which are applicable according to their origin.

4. If the goods imported into consumption are originating in the Canary Islands and have not been subject to a prior delivery, the taxable amount shall be the only one corresponding to the goods referred to in paragraphs 1. or 2. which, if necessary, have been incorporated into them, determined in accordance with the rules of those paragraphs which are applicable according to their origin.

5. In the taxable amount of the imports into consumption of the goods referred to in the preceding paragraphs, they shall also be integrated, and provided that they are not included in the foregoing concepts, the consideration of the of services directly related to the goods imported, where those benefits have been exempt from the tax and have been effected while they have remained under the said customs arrangements. Such consideration shall be determined in accordance with the rules laid down in Articles 48, 49 and 50 of this Regulation.

6. Where one or more deliveries of the imported goods have taken place, while the supplies are covered by the customs procedures indicated, the tax base shall be added to the following concepts:

(a) The consideration of the delivery of the goods made to the importer, increased with that of the goods incorporated in the previous ones by the importer himself until the moment of importation if the latter had been acquired by virtue of transactions exempt from the tax. If the consideration given to the goods originating from the foreign, peninsula, Balearic Islands, Ceuta or Melilla were lower than their respective , these values will be taken for the determination of the tax base.

(b) The consideration of services directly related to the reference goods and which have been borrowed from their delivery to the importer up to the time of import.

The consideration referred to in points (a) and (b) above shall be determined in accordance with the rules laid down in Articles 48, 49 and 50 of the Regulation.

(c) The rights, charges and ancillary and ancillary charges referred to in Article 52 (1). and 2. of this Regulation.

2. For the consumption imports referred to in Article 9 (2) (5) of this Regulation, the taxable amount shall be determined by applying the rules applicable to the number 1 of this Article, in accordance with the origin of the goods.

3. Reimports of goods which do not appear in the same state in which they were intended to have been the subject of a repair, work, processing or incorporation of other goods on the peninsula, the Balearic Islands, Ceuta, Melilla or abroad, the tax base will be determined by the sum of the following concepts:

1. The difference between the customs value of the goods being reimported and the customs value of the goods previously exported, both values at the time when the corresponding transactions are carried out.

2. The rights, taxes and ancillary and ancillary charges referred to in Article 52 (1). and 2. of this Regulation.

4. The time to refer to the determination of the taxable amount or the components thereof shall be that of the tax accrual.

However, in the importation of the secondary compensating products resulting from the processes of production of the system of suspension of the inward processing procedure, the determination of the tax base shall relate to:

(a) When the main products obtained in such processes are exported, at the time of export of these products.

(b) When the main products are imported into consumption, that of the accrual for the importation of these products.

5. The quotas satisfied in the imports of goods referred to in the sixth subparagraph of Article 34 (1) (1) of this Regulation shall not be reduced from the quota resulting from the importation into consumption of those goods.

Chapter VII

The tax rate

Article 54. General tax rate.

1. The General Indirect Tax Shall Be Required At The Rate Of 4 Per 100, With The Exception Of The Following Articles.

2. In each year's Budget Law, the rates of the Indirect Canarian General Tax may be modified, and at the initiative, if any, of the Autonomous Community of the Canary Islands, which will listen previously to the Island Cabildos.

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

Article 55. Zero type.

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

1. Deliveries of goods by vessel owners of products which come directly from their catches, where they have not undergone any processing process, in accordance with the terms laid down in Article 30 of this Regulation. Regulation.

2. Collection, production and distribution of water, except mineral and gaseous water.

3. Deliveries of medicines.

For these purposes, the goods, as defined in Article 35 (3) of this Regulation, have the consideration of medicinal products.

4. Delivery of newspapers, books and magazines, as well as complementary elements to be delivered jointly with those by unit price.

They shall be considered as complementary elements to the magnetophonic tapes, discs, video clips and other sound supports or similar video clips, the acquisition cost of which does not exceed 50 per 100 of the unit price to the public.

5. Deliveries of products recorded by magnetic or optical means of educational or cultural use related to Article 35 (4) of this Regulation.

6. Delivery of official protection housing for public promotion or works of community equipment.

7. Carriage of passengers and goods by sea or air between the islands of the Canary Islands.

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

Article 56. Reduced rate.

The type of 2 per 100 will be applied to the following operations:

1. Deliveries and imports of products derived from the following industries and activities:

1. Extraction, preparation and agglomeration of solid fuels and coke.

2. Oil refining.

3. Extraction and processing of radioactive minerals.

4. Production, transport and distribution of electricity, gas, steam and hot water.

5. Extraction and preparation of metallic minerals.

6. Production and first transformation of metals.

7. Extraction of non-metallic or energy minerals, as well as the use of peat bogs.

8. Non-metallic mineral products industries.

9. Chemical industries.

10. Manufacture of olive oil.

11. Manufacture of oils and fats, plants and animals other than olive oil.

12. Slaughter of cattle, preparation and preservation of meat.

13. Dairy and milk-based industries.

14. Manufacture of vegetable saps and preserves.

15. Manufacture of preserved fish and other marine products.

16. Manufacture of milling products.

17. Manufacture of pasta and milk products.

18. Preparation of prepared soups, extracts and condiments.

19. Bread, bakery, pastry and cookie industries.

20. Sugar industries.

21. Cocoa, chocolate and confectionery industries.

22. Making coffee, tea and coffee substitutes.

23. Industries of animal feed products, including fish meal products.

24. Manufacture of dietetic and regime products.

25. Industries of mineral waters, gaseous and other non-alcoholic beverages.

26. Textile industry.

27. Leather industry.

28. Footwear and clothing industry and other textile garments.

29. Wood, cork and wooden furniture industries.

30. Manufacture of paper pulp.

31. Manufacture of paper and paperboard.

32. Industries for the processing of rubber and plastics.

2. The provision of land transport services.

Article 57. Increased rates.

1. The increased tax rate of 12 per 100 shall apply to deliveries, leases or imports of the following goods:

1. Labors of blond tobacco and cigars with a price of more than 100 pesetas.

2. Compound spirits, liqueurs, appetizers without a base wine and other beverages derived from natural alcohols, in accordance with the definitions laid down in the Staff Regulations of Vina, Wine and Spirits and Supplementary Regulations, and alcoholic extracts and concentrates suitable for the production of derived beverages. In both cases, it will be applied as long as they exceed the price of 200 pesetas per litre.

3. Motor-powered boats and recreational craft or motor sports vessels, the maximum length of which is between five and nine metres, inclusive.

4. Motor-driven vehicles with power less than 10 hp, except:

(a) lorries, motorcars, vans and other vehicles which, by virtue of their objective configuration, are engaged in the carriage of goods.

(b) Buses, minibuses and other vehicles engaged in the collective transport of passengers, including those whose capacity exceeds nine seats, including that of the driver.

(c) The vehicles referred to in the preceding paragraph whose capacity is equal to or less than nine seats, provided that their total height above the ground is greater than 1,800 millimetres and cannot be technically qualified as vehicles type .

(d) Those considered to be self-taxis or self-passenger cars under current legislation.

(e) Those which are objectively considered to be of exclusive industrial, commercial, agricultural, clinical or scientific application, the models of which have been duly approved by the Ministry of Economy and Finance of the Autonomous Government Canarian.

(f) Vehicles type whose serial models, to be considered as industrial, commercial or agricultural application, have been duly approved when their retail price is less than 1, 000 pesetas or exceeding 2,500,000 pesetas.

g) Vehicles purchased by the disabled for their exclusive use

whenever the following requirements are met:

(a ') That 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.

b ') That they are not the subject of a subsequent transmission by means of live acts within four years of the date of their acquisition.

Failure to comply with this requirement will determine the beneficiary's obligation to enter into the Public Finance the difference between the quota that it would have had to bear by application of the increased rate and the actual supported when the vehicle was purchased.

The application of the general tax rate will require the prior recognition of the right of the acquirer in the signature determined by the Autonomous Community of the Canary Islands.

(h) Tourism car rental services provided by companies that are normally engaged in and exclusively for the performance of such activities under the conditions and with the following requirements:

First. That there is no linkage between the parties involved in the operations referred to in Article 50 (3) of this Regulation.

Second. Not to exceed three months the rental time of the same vehicle to a person or entity, during each period of twelve consecutive months.

Third. Whereas, in the case of the hire of non-driver passenger cars, the services are provided subject to the provisions of the rules governing such activity and by persons or entities with the required administrative authorisation.

Fourth. That the vehicles affected by the rental activity are not used in the performance of other business activities which, if any, could be carried out by the taxable person.

For the purposes of the provisions in this issue they will not have the consideration of rental car contracts of tourism-sale and assimilated, nor those of leasing with option to buy.

i) Vehicles of 2 or 3 wheels with a cylinder capacity of 500 cc or less.

5. Trailers for passenger cars.

6. Shotguns, whether or not compressed air, and other long firearms, of a unit size equal to or greater than 45,000 pesetas.

7. Cardboard for hunting shotguns and, in general, for the other weapons listed in paragraph (f) above, when their consideration per unit is equal to or greater than 17 pesetas.

8. Jewellery and jewelry made wholly or partly with gold, without the incorporation of platinum, precious stones or natural pearls, the consideration of which per unit does not exceed 100 000 pesetas, the commemorative coins of legal tender, Silver and silver objects, as well as fine jewellery containing silver, ordinary jewellery and imitation pearls.

9. Pocket watches, wristbands, desktops, foot, wall, etc., the consideration of which per unit is equal to or greater than 20,000 pesetas.

10. All kinds of articles of glass, glass, loza, ceramics and porcelain having an artistic or ornament purpose for which the consideration per unit is equal to or greater than 10,000 pesetas.

11. Hand-knotted rugs in wool and fur.

12. Articles of clothing or of personal adornment, made from flowing skins.

13. Perfumes and extracts.

2. The increased tax rate of 24 per 100 shall apply to deliveries, leases or imports of the following goods:

1. Motor-driven vehicles for road traffic, except:

(a) Those expressly excluded from the application of the increased tax rate of 12 per 100 in points (a), (b), (c), (d), (e), (g) and (h) of paragraph 4.

(b) Vehicles type whose serial models, to be considered as industrial, commercial or agricultural, have been duly approved by the Economic and Finance Ministry, when their sales price to the The public does not exceed 2,500,000 pesetas.

(c) Vehicles with a power less than 10 hp.

2. Boats and recreational vessels or nautical sports which have more than nine metres of maximum length, with the exception of Olympic vessels which, due to their configuration, can only be operated for rowing.

3. 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 even under financial leasing contracts.

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

4. Jewellery, jewelry, precious stones, natural or cultured pearls, articles made wholly or partly with gold or platinum, as well as fine jewellery containing precious stones, natural pearls or metal, whether in the form of bathed or plated.

Not included in the preceding paragraph.

(a) Objects containing gold or platinum in the form of a plated bath with a thickness of less than 35 microns.

b) Demasquinates.

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

(d) 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.

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

(f) jewellery and jewelry made wholly or partly with gold, without the incorporation of platinum, precious stones or natural pearls, the consideration of which per unit does not exceed 100 000 pesetas, as well as the commemorative coins of legal tender.

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

5. Articles of clothing or of personal adornments, made from suntuary furs of ornate.

It is considered as a suntuary ornate the skins without a pillar of ermine, astrakanes, breistchwaz, burundiky, beaver, cybeline china, cybeta, chinchillas, chinchillones, gardunes, cat lynx, ginets, glutton, cheetah, jaguar, lion, snow leopard, lynx, wolf, martens, martens Canada, martas Japan, muflon, sea otter, otter kanchaska, ocelote, panda, panther, pekan, pissihiki, flounder, tiger, turons, vicuña, mink, blue fox, white fox, cross fox, Silver fox and shodow fox.

Not included in this section are handbags, wallets and similar objects, or garments made exclusively with retales or waste (heads, legs, tails, cuttings, etc.) or with current or imitation skins.

3. Likewise, the type of 24 per 100 will be applied to the production, distribution and assignment of film rights to be displayed in rooms, well as the exhibition of the same.

Title II

Deductions and Returns

Chapter I

Deductions

Article 58. Nature and scope of application.

The taxable persons will be able to deduct from the quotas of the Indirect General Tax payable as a result of the supplies of goods and services they carry out in the Canary Islands, which are due in the Canary Islands. the territory has incurred in the acquisition or imports of goods or services which have been provided to them, in so far as such goods or services are used in the conduct of the operations which are subject to and not exempt from the tax or the other operations specified in Article 60 (4) of this Regulation.

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, have provided the corresponding census statement for the purposes of this tax, to the Economic and Finance Ministry of the Autonomous Government of the Canary Islands and in the form determined by it, communicating to the Tax Administration the commencement of its activities, and effectively initiated the delivery of goods or services of services constituting the object of its activity.

However, the quotas that had been previously supported shall be deductible from the time the said declaration was provided or, failing that, the declaration-settlement for the period in question. the said quotas would have been supported, provided that there was no formal request from the Administration or an inspector.

2. The quotas previously supported at the beginning of the operations referred to in the preceding number may be deducted only 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 in accordance with the rules laid down in that Title for each of them.

Article 60. Tax deductible fees.

1. The taxable persons referred to in the foregoing Article may deduct the shares of the Indirect General Tax payable in the Canary Islands which they have borne by direct impact on their purchases of goods or services they borrowed.

It is understood that the taxes payable and passed on to the taxable person by their suppliers will be directly affected, even if they have not been met with the Public Finance.

It will also be deductible from the same tax payable in that territory and satisfied to the Public Finance, by the taxable person in the following cases:

1. In imports of goods.

2. In the case referred to in Article 42 (1) (2).

of this Regulation.

2. In no case shall the deduction of the fees which have not been incurred in accordance with the law or in excess of that which is legally applicable shall be deducted.

The fees passed before the tax accrual may only be deductible from the time the tax accrual occurs.

3. Also, taxable persons who have made acquisitions to retail traders corresponding to deliveries exempt under paragraph 27., in Article 11 (1) of this Regulation, may deduct the Indirect General Tax Canary, which is implicit in the consideration of the aforementioned deliveries. The amount of such implicit tax burden shall be determined by applying a coefficient on the amount of consideration of the operation carried out. The value of the said coefficient shall be obtained by multiplying 0,7 by the rate of charge, expressed as one, which would apply to the supply of corresponding goods in the case of not being exempt.

That is, the applicable formula would be as follows:

K= 0.7 x T/100, in which K is the coefficient to be applied and T the corresponding tax rate.

4. The contributions borne and the tax burden implied in the preceding number shall be deductible in so far as, the goods or services the acquisition or import of which the right to deduct is subject to, are used by the taxable person in the performing the following operations:

1. Those carried out in the Canary Islands as follows:

(a) The supply of goods and services that are subject and not exempt to the Indirect Canarian General Tax.

(b) the supply of services, the value of which is included in the taxable amount of the imports of goods, within the meaning of this Regulation.

(c) the supply of goods and services which are exempted under Articles 14 and 15 of this Regulation, and other final exports of goods and shipments of goods of a character definitive to the peninsula, the Balearic Islands, Ceuta or Melilla which are not intended for the purposes of the operations referred to in paragraph 2. of this number 4.

(d) Those relating to Free Zones and Deposits and other Deposits, as well as to special customs arrangements, which are exempt from the tax in accordance with Articles 16 and 17, numbers 1 and 2 of both Articles of this Regulation and the services exempted in accordance with Article 34 (1) of this Regulation.

(e) Insurance, reinsurance, capitalization and services relating to them, as well as banking or financial services, which are exempted under the provisions of paragraphs 16. 1. and 18. of Article 11 of this Regulation, provided that the recipient of such benefits is not established in the European Economic Community or that the said operations are directly related to exports of goods to countries (a) not belonging to that Community and shall be effected from the moment when the goods are dispatched to third countries.

For the purposes of the preceding paragraph, the business or professional persons to whom the abovementioned operations are addressed shall be deemed not to be established in the European Economic Community, where it is not situated in the the territory of that Community or its domicile or any permanent establishment thereof.

Persons or entities which do not have the status of employers or professionals shall be deemed not to be established in the European Economic Community where no place of principal residence or residence is situated in those territories. (a) secondary education, not the centre of its economic interests, nor do they provide, in the same territories, services as a dependency arising from industrial or administrative relations.

(f) Services provided by travel agencies, exempt from the tax under Article 113 of this Regulation.

g) Free deliveries of samples or advertising objects of low value and the performance of free, performed and other demonstration services for the promotion of business or professional activities.

2. Those made on the peninsula, the Balearic Islands, Ceuta or Melilla, any other Member State of the EEC or in third countries, which would give rise to the right of deduction if they had been carried out in the Canary Islands.

5. Taxable persons may only deduct the tax which is satisfied as a result of imports or is incurred in the purchase of goods or services which are directly related to the pursuit of their business or professional activity. This condition must also be met in respect of the implicit tax burden to be deducted.

6. The goods or services concerned shall be considered to be directly related to the pursuit of business or professional activity solely for the purpose of carrying out such activity.

Not only considered to be affected by a business or professional activity:

1. Goods intended for such activity and other goods of a non-business or professional nature for alternative periods of time.

2. Goods or services which are used simultaneously for business or professional activities and for private purposes.

3. Goods acquired by the taxable person who are not included in his business or professional assets.

The goods excluded from it shall not be considered to be integrated in the business estate in the declarations of the Tax on the Heritage or in the accounts of the taxable person.

4. Goods intended for the satisfaction of personal or private needs of employers or professionals or their family members or of staff dependent on them, with the exception of those intended for free accommodation, at local level (a) the staff responsible for the supervision and security of the company and the economic and sociocultural services of the staff at the service of the business.

The provisions of the foregoing paragraph shall not apply in respect of the goods which, for the purposes indicated, are the subject of delivery or transfer of use subject to and not exempt from the Indirect General Tax. have been subjected to processing by the taxable person.

7. Except as provided for in paragraphs 1 and 2 above, 2. and 4., goods or services which are used for private purposes in an ancillary and notoriously irrelevant manner or by way of consideration.

The real estate acquired and used primarily for the development of a business or professional activity, which is considered to be used for private purposes, is considered to be used for private purposes. intended for the use of the taxable person himself, or for persons living with him, in days or indeft hours during which the exercise of such activity does not continue.

Article 61. Exclusions and restrictions on the right to deduct.

1. They may not be deducted:

1. The quotas supported as a result of the acquisition, import, leasing, processing, repair, maintenance or use of passenger cars and their trailers, motorcycles, aircraft or sports or recreational craft, such as accessories, spare parts, fuels, fuels and lubricants for such vehicles and other services relating to them, including parking and use of toll motorways.

The provisions of the preceding paragraph shall not apply to the following vehicles:

(a) Those intended exclusively for the carriage of goods.

(b) Those intended exclusively for the carriage of passengers by way of consideration, with the exception of the quotas supported by the use of such vehicles, which shall in no case be deductible.

c) Those intended exclusively for the teaching of drivers.

d) Those intended by their manufacturers exclusively for the performance of tests, trials, demonstrations or sales promotion.

e) Those acquired by representatives or by independent commercial agents to exclusively direct them to their professional displacements.

f) Those acquired for use exclusively in surveillance services.

2. The fees supported by the travel or travel services of the taxable person himself, his staff or third parties, including those related to business or professional activity.

3. The fees incurred in the purchase or import of food or drink, or for hotel, restaurant or entertainment services, except where they are intended to be used or consumed by employees or third parties by means of (i)

4. The quotas supported as a result of acquisitions, leases or imports of jewellery, jewelry and similar articles, garments or personal adornments made with suntuary furs, manufactured tobacco, tapestries and the objects of art and antiques defined in Article 107 of this Regulation.

5. The fees incurred as a result of acquisitions of goods or services intended for care to clients, employees or third parties.

This consideration will not be given to those described in paragraph 2, number 2, of this article which, at a time after its acquisition, are intended for attention to clients, employees or third parties.

2. The following items are exempted from the previous number of acquisitions or imports of the following goods:

1. Those which are objectively considered to be of exclusive industrial, commercial, agricultural, clinical or scientific application.

2. Those intended exclusively for the purpose of delivery or transfer of use, directly or through processing, by taxable persons who are used to such operations.

The provisions of the preceding paragraph shall apply in respect of goods intended to be transferred to employees or third persons under operations subject to tax by taxable persons who are entitled to Consideration of the implementation of the above mentioned operations.

Article 62. Formal requirements of the deduction.

1. Only taxable persons who, at the time when they exercise the right, are in possession of the document justifying their right, may exercise the right to deduct.

2. The right to deduction is considered as supporting documents:

1. The original invoice issued by the person making the delivery or providing the service, either directly or through a person authorised under the law, and adjusted to the applicable rules.

2. The duplicate copy of the invoices, in the cases where appropriate and the form provided for in the rules governing it.

3. The document proving the payment of the import tax.

4. The document issued in the case referred to in Article 442 (1) (2). of this Regulation.

3. The documents referred to in the preceding paragraph of this Article shall only justify the right of deduction where the consignor has recorded in them all the information required in the regulation of the formal obligations and, in all Case, the quota is satisfied in a different and separate way from the tax base. Subject to the provisions of the later number 5, the records required by the provisions in force must be duly recorded by the taxable person exercising the deduction.

4. In the case of goods acquired in common by several taxable persons, each acquirer may deduct the corresponding proportional share, provided that in the original and in each of the duplicate copies of the invoice or supporting documents are entered, in a separate and separate form, the share of the taxable base and the share passed on to each of the acquirers in common.

5. However, the right of deduction shall be justified by documents which comply with the formal requirements laid down by Royal Decree 2.402/1985of 28 December, even if they were not accounted for, provided that the (a) the amount of the amount of the tax paid by the taxable person to the taxable person who has the right to the deduction.

6. In no case shall the deduction be made where the supporting documents of the said right are not issued by the taxable person exercising that right or the identification of the consignee is not entered on the same.

7. The right to deduct in excess of the express and separately entered tax share which has been passed on or, where appropriate, satisfied according to the document supporting the deduction, shall also not be permitted, except in the case of deduction. which is set out in Article 60 (3) of this Regulation.

Article 63. Birth of the right to deduct.

1. The right to deduction is born at the time the deductible fees are paid.

2. However, in the case of imports of goods and in the case provided for in Article 42 (1) (2). of this Regulation, the right to deduct shall be incurred at the time when the taxable person makes the payment of the deductible fees.

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.

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 period of one year has not elapsed, counted from the birth of the said right.

The provisions of the preceding paragraph shall be without prejudice to the following numbers 5 and 6.

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 incurred.

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 five 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 of the in Articles 80, 81 and 82 of this Regulation.

Article 65. Expiry of the right of deduction.

1. The right to deduction expires when the holder has not exercised it within the time limits and amounts indicated in this Regulation.

2. Subject to the provisions of Nos 5 and 6 of the foregoing Article, the right to deduct shall in any event lapse within one year of the date of birth of the said right.

In the cases referred to in the preceding paragraph, the right to deduction may not be exercised in the statements-settlements after that corresponding to the period in which it was expired.

However, if there was a formal request from the Administration or the inspector, the fees that were duly accounted for in the records established for this tax would be deductible.

Article 66. Scheme of deductions in differentiated activities.

1. Taxable persons carrying out differentiated business or professional activities shall apply the deductions scheme in respect of each of them independently.

However, the option for the application of the special pro rata rule shall have effect in respect of all the activities carried out by the taxable person, except those included in the simplified and special schemes. agriculture and livestock farming and those of retail trade which are exempt from the tax.

When acquisitions or imports of goods or services for use in common in several different sectors of activity are carried out, the rules of this Regulation governing the general pro-rata for determine the percentage of deduction applicable to the acquisitions of such assets, taking into account the full effect of the business or professional operations carried out by the taxable person.

For the calculation of the percentage referred to in the preceding paragraph, the right to deduct the operations included in the special arrangements for agriculture and livestock farming shall not be considered as originating.

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

(a) Those where the economic activities carried out and the applicable deduction schemes are different.

Different economic activities shall be considered to be those that are assigned different groups in the National Classification of Economic Activities, in accordance with the provisions of Decree 2518/1974 of 9 August, and other additional provisions.

Not to be considered for these purposes other than the ancillary activity to another principal which contributes to its realisation when the volume of operations carried out in the preceding year in that sector of activity does not exceed 5 per 100 of the the principal.

The deduction schemes referred to in point (a) shall be considered as distinct if the percentages of deduction which would be applicable in each of the economic sectors determined in accordance with the provisions of the Article 69 of this Regulation differs from each other by more than 50 percentage points.

(b) Sectors covered by the simplified scheme and the special arrangements for agriculture and livestock farming, as well as retail trade activities which are wholly exempt under the provisions of Article 11, 1, paragraph 27.

(c) The leasing operations referred to in the seventh additional provision of Law 26/1988 of 29 July on Discipline and Intervention of Credit Entities.

3. The Economic and Finance Ministry of the autonomous government of the Canary Islands may authorise the application of a system of deduction common to the set of differentiated business or professional activities carried out by the same taxable person in the cases and with the requirements to be determined.

Article 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 and 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.

Article 68. Pro rata classes and application criteria.

1. The pro rata rule has two modalities of application: the general pro rata and the special pro rata. Except as provided for in the subsequent numbers of this Article, the general pro rata shall apply.

2. Taxable persons may choose to apply the special pro rata rule in writing to the Canary Tax Administration within the time limit determined by the latter.

3. The Canary Tax Administration may require the taxable person to apply the special pro rata in the following cases:

1. When you simultaneously perform different economic activities by

reason for your object.

Different activities that have different subjects in the National Classification of Economic Activities will be considered.

2. If the application of the general pro rata is to result in significant distortions in the application of the tax.

Important distortions of the application of the rule of general pro rata shall be understood when the overall amount of the quotas to be deducted during the year preceding the year in which the agreement is adopted by application of that rule rule is greater by 20 per 100 than would result from the special pro rata rule.

The relevant agreement must be notified to the person concerned before 1 December of the year preceding the year in which it is to have effect.

Article 69. The overall pro rata.

1. In the case of application of the rule of general pro-rata, the deduction shall relate only to the part of the tax which, borne in each settlement period, corresponds to the percentage which the amount of the transactions giving rise to the deduction represents the total of those made by the taxable person in the course of his business or professional activity.

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. In the numerator, the total amount, determined for the corresponding year, of the supplies of goods and services resulting from the right of deduction, made by the taxable person in the course of his business or or, where appropriate, in the relevant differentiated activity.

2. In the denominator, the total amount, determined for the same period of time, of the transactions carried out by the taxable person in the course of his business or professional activity or, where appropriate, in the relevant differentiated activity, including those which do not give rise to the right to deduct.

In the transactions of cession 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 those currencies, 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 during the same period period of time.

The resulting deduction pro rata will be rounded to the top unit.

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

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

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

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

4. The amount of real estate or financial transactions which do not constitute a 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. Imports and acquisitions of goods or services.

6. The amounts paid by the public authorities or by the insurance institutions in respect of claims for damages arising from claims.

7. The subsidies which, in accordance with Article 48 (2) (3) of the Regulation, do not form the basis for the taxable amount of the tax.

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 in accordance with Articles 48 and 50 of this Regulation, even in respect of transactions which are exempt and not subject to tax.

In the case of shipments of final goods to the peninsula, Balearic Islands, Ceuta or Melilla, or of final exports not covered by Article 14 of this Regulation, the amount of the transaction shall be taken as the amount of the value within the Canary Islands of the exported products, determined in accordance with Article 50 (1) of this Regulation.

5. In the execution of works and services carried out outside the Canary Islands, the amount of the operation shall be taken as the amount of the total consideration for the coefficient resulting from the division of the cost portion supported in the Canary Islands for the total cost of the operation.

However, in the cases referred to in the preceding paragraph, the taxable person may take as the amount of the transaction the value within the Canary Islands of the materials sent definitively to the Spanish peninsular territory, Balearic Islands, Ceuta, Melilla, other Member State of the EEC or a third country, determined in accordance with Article 50 (1) of this Regulation.

6. 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 falling within the preceding numbers.

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

Article 70. Procedure for the general pro rata.

1. The deductible proportion provisionally applicable each calendar year shall be determined on the basis of the operations of the preceding year.

2. The pro rata provisionally applicable in 1993 will be the one that would result if the Indirect General Tax would have been in force in 1992.

3. Except as provided for in Article 77 of this Regulation, taxable persons who are unable to calculate such pro rata for not having started their operations subject to the tax during the preceding year or who are unable to apply the pro rata pro rata operations of the previous year because the proportion which it was given could have been significantly altered by applying a provisional percentage approved by the Economic and Finance Ministry of the autonomous government of Canary Islands.

For the purposes of the foregoing paragraph, it is essential that the applicable provisional percentage proposed by the taxable person be approved by the Economic and Finance Ministry, which may, in any event, fix percentage other than that proposed.

4. In the final settlement of the tax for each calendar year, the taxable person shall calculate the proportion of the final deduction on the basis of the operations carried out during that period and shall carry out the subsequent regularisation of the provisional deductions.

5. The deductible proportion, determined in accordance with the foregoing numbers of this Article, shall be applied to the sum of the contributions borne by the taxable person during the calendar year concerned, whichever is the date of the acquisition of the goods or services.

The provisions of the preceding paragraph shall not apply in respect of non-deductible quotas pursuant to Article 60 (2), (5) and (6) and Article 61 of this Regulation.

Article 71. The special pro rata.

1. The exercise of the right to deduct in the special pro rata shall comply with the following rules:

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

Second. The tax quotas incurred in the purchase or import of goods or services used exclusively in the conduct of transactions which do not give rise to the right to deduct may not be deducted.

Third. The tax quotas supported in the purchase or import of goods or services used only in part, even during alternative periods of time, in the conduct of transactions originating in the right to deduction may be deducted in the proportion resulting from the application of the percentage referred to in Article 69 (2) and (2) of this Regulation to the overall amount of the same percentage.

The application of this percentage will be in accordance with the procedural rules laid down in Article 70 of this Regulation.

2. Without prejudice to Article 64 (2) of this Regulation, they shall be considered to be used only in part in the conduct of operations which give rise to the right to deduct the goods or rights which are initially used only in the the carrying out of transactions originating in such a right, and subsequently used, in whole or in part, in the conduct of operations of a different nature or vice versa.

Article 72. Deductions for and regularisation of investment goods.

1. Taxable persons may deduct the tax shares which are incurred in the purchase or import of the goods which, as laid down in Article 73 of this Regulation, are qualified as investment in accordance with the rules applicable to them. goods of other kinds.

2. However, the deductible quotas must be regulated during the four calendar years following the one in which the actual use or entry into operation of the said goods is initiated when the final pro rata for each one of those years and the one that prevailed in the year in which the impact was supported exists a difference of more than ten percentage points.

The regularisation referred to in the preceding paragraph shall also apply where the taxable persons have made, during the year of acquisition of the investment goods, only transactions which give rise to the right to deduction or exclusively transactions which do not give rise to such a right and, subsequently, for any of the four years following the year in which the actual use or entry into operation of the said goods is initiated, is amended as follows: situation in the terms set out in the previous paragraph.

3. In the case of land or buildings, the regularisation shall relate to the nine years following that in which the commencement of its use took place.

4. The period of regularisation of the tax quotas which have been passed on after the start of the effective use or entry into operation of the investment goods shall begin to be counted from the year in which it occurred. such impact.

5. The income or, where applicable, additional deductions resulting from the adjustment of deductions for investment goods shall be made in the declaration-settlement for the last settlement period of the calendar year to which the

Article 73. Concept of investment goods.

1. Except as provided for in Article 137 of this Regulation, the effects of this tax shall be regarded as investment property, movable, semi-movable or immovable property which by its nature is normally intended to be used by a Member State. period of time exceeding one year as working instruments or means of exploitation.

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

1. The office equipment and the use of the equipment, the cost of which does not exceed 200,000 pesetas per unit.

2. Accessories and spare parts purchased for the repair of the investment goods used by the taxable person.

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

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

5. The clothes used for the work by the taxable persons or the dependent staff.

Article 74. The invention relates to a method for regulating the adjustment of deductions for investment goods.

The regularisation of the deductions referred to in the previous article shall be carried out as follows:

1. Known as the percentage of deduction definitively applicable in each of the years in which the regularisation is to take place, the amount of the deduction to be deducted shall be determined if the impact of the quotas had been borne in the year in which the is considered.

2. This amount shall be deducted from that of the deduction made in the year in which the impact took place.

3. The positive or negative difference shall be divided by five or, in the case of land or buildings, by 10, and the resulting ratio shall be the amount of the additional income or deduction to be made.

Article 75. Transfer of investment goods during the period of regularisation.

1. In the case of deliveries of investment goods during the period of regularisation, it shall be carried out at one time for the period of the period remaining to elapse.

To this effect, if the delivery was subject to the tax and not exempt, the investment property would be considered to be used exclusively in the conduct of transactions that cause the right to deduct throughout the year in which it was made such delivery and in the remaining deliveries until the end of the regularisation period.

However, the difference resulting from the application of the provisions of the preceding paragraph shall not be deductible as soon as it exceeds the quota passed on to the acquirer in the transmission of the good to which it relates.

If the delivery is exempt or not subject, the investment property shall be deemed to have been used exclusively for the performance of transactions which do not give rise to the right to deduct throughout the year in which the delivery was made and in the remaining until the end of the regularisation period.

The supply of investment goods benefiting from the exemptions provided for in Article 14 (1) and (2) of this Regulation, to which the rule contained in the Regulation applies, is exempted from the provisions of the preceding paragraph. the second paragraph of this number 1, corresponding to the deliveries subject to and not exempt. The deductions in this case may not exceed the quota which would result from applying the tax rate in force in relation to supplies of goods of the same nature to the internal value of the goods exported or sent to the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the EEC.

The regularisation referred to in this Article must be carried out even if the pro rata rule has not been applied in the preceding years.

2. The provisions of this Article shall not apply:

1. In the case of transfers of investment goods not subject to tax pursuant to Article 10 (1) of this Regulation, the acquirer shall automatically be subrogated to the position of the transferor.

In such cases, the deductible proportion applicable to practice the adjustment of deductions for such goods during the same year and the remaining ones may not be higher than that resulting from the average of those applicable in the company. for the past five years immediately.

This percentage shall be determined in accordance with Article 69 (2) of this Regulation, taking into account the overall amounts of the supplies of goods and services delivered during the whole of the that period.

If the global transmissions of a business estate had been carried out before the transferring undertaking had completed the five-year period from the beginning of the business or business activity, the corresponding limit shall be fixed with reference to the period of time when the transmission has actually carried out such activity.

2. If the shares supported as a result of the acquisition of investment goods had been wholly deducted and the transfer of such assets had been subject to and not exempt from the tax or such delivery would have benefited from the exemptions provided for in Article 14 (1) and (2) of this Regulation.

3. If the shares supported as a result of the acquisition of the investment goods were not even partially deducted and the subsequent transfer of such assets would have been exempt or not subject to the tax, except in the case of exemption provided for in Article 14 (1) and (2) of this Regulation.

3. This Article shall apply, even if the investment property is transmitted before its use by the taxable person.

Article 76. Deductions prior to the start of business or professional activities.

1. Employers or professionals may deduct the fees previously incurred at the normal start of the supply of goods or services which constitute the object of their activity, in accordance with the provisions of this Regulation. Article 77, 78 and 79 of this Regulation.

Except as provided in the preceding paragraph, the fees incurred as a result of the acquisition of land, which may only be deductible from the time the operations are actually initiated subject to the tax, at the time of formulating the first declaration-liquidation by the Indirect General Tax Canarian after that date.

2. The quotas which have been supported before the presentation of the corresponding census declaration, for the purposes of this tax, shall not be deductible before the Ministry of Economy and Finance of the Autonomous Government of the Canary Islands, indicating that they do not they shall immediately commence the supply of goods or services which are the subject of the activity of the taxable person.

3. Until the beginning of the transactions subject to the tax, a provisional percentage of the deduction to be determined by the Department of Economic and Financial Affairs shall be applied on the basis of the characteristics of the future. business or professional activities.

4. For the purposes of this Article and Articles 77 and 78 of this Regulation, the first year of the exercise of the activity during which the subject begins the normal exercise of his business or business activities shall be considered as the first year of the activity or professionals, provided that the start of these activities takes place before 1 July and, in another case, the following year.

5. Provisional deductions shall be adjusted in accordance with Articles 77 and 78 of this Regulation.

6. The provisions of this Article shall apply in respect of transactions carried out by taxable persons prior to the commencement of their operations in the sectors of differentiated activity defined in Article 66 (2) of the Treaty. Regulation.

7. If the delivery of goods or services is interrupted during a calendar year or higher period, the rules laid down in the preceding numbers relating to the resumption of operations shall apply, including in the case of cases in which such interruption affects a sector of differentiated activity.

8. 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.

9. Any taxable person who has benefited from the deduction scheme provided for in this Article shall not be eligible for the simplified special scheme or for agriculture and livestock farming for a period of three years from the start of his activities. business or professionals.

Article 77. Regularisation of deductions prior to the commencement of business or professional activities.

1. Provisional deductions prior to the commencement of business or professional activities shall be regulated by applying the final percentage overall corresponding to the period of the first three calendar years of the financial year. activity.

2. The final percentage referred to in the preceding number 1 shall be determined in accordance with Article 69 of this Regulation, by multiplying the result of a fraction in which they appear:

1. In the numerator, the total amount, determined overall for the first three years of the financial year, of the supplies of goods and services resulting from the right of deduction, made by the taxable person. in the exercise of his business or professional activity or, where appropriate, in the relevant differentiated activity.

2. In the denominator, the total amount, determined for the same period of time, of those transactions carried out by the taxable person in the course of his business or professional activity or, failing that, of the differentiated activity which corresponds, including those which do not give rise to the right to deduct.

Article 78. Procedure for regularisation of deductions prior to the commencement of 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 quotas previously supported at the beginning of the business or professional activities, the amount of the deduction that would be applied in application of the said percentage.

2. This amount shall be deducted from the total sum of the provisional deductions made prior to the business or professional activity.

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

Article 79. Deductions prior to the commencement of business or professional activities by acquisition or importation of investment goods and regularisation thereof.

1. Taxable persons may deduct the tax contributions previously incurred at the beginning of the financial year of their business or professional activities for the purchase or import of goods which, as laid down in Article 73 of the This Regulation shall be qualified as investment, in accordance with the rules applicable to goods of another type.

2. Deductions made pursuant to the preceding number shall be adjusted during the first calendar year of the year in which the activity is carried out, as defined in Article 76 (4) of this Regulation and subsequent years.

3. The adjustment of deductions referred to in the preceding number 2 shall be effected only by the part of the period of regularisation laid down in Article 72 of this Regulation which has elapsed since the time indicated in that Regulation. Article.

4. For the practice of regularisation of deductions for investment goods regulated in this Article, the year in which the impact took place, as provided for in Article 74 (2) of this Regulation, shall be considered as a deduction:

1. The result of the percentage of the provisional deduction actually applied for the year in which the deductible quotas were incurred, for the purposes of regularisation corresponding to the first two calendar years of the exercise of the activity business or professional.

2. The percentage of the deduction definitively applicable in accordance with Article 77 of this Regulation, during the third calendar year of the business and professional activity and subsequent years.

3. Where the investment property is the subject of delivery before the end of its own period of regularisation, the rules of Article 75 shall apply, without prejudice to Articles 76 to 79 of this Regulation.

Article 80. Correction of deductions.

The taxable persons may rectify the deductions made in the cases of error or variation in the amount of the fees to be deducted.

The rectification will be mandatory when it involves a minorage of the deducted quotas.

Article 81. Formal requirements for the rectification of deductions.

1. The correction of deductions to determine an increase of previously deducted quotas may be effected only if the taxable person is in possession of the corresponding invoice or supporting document issued in accordance with the rules to regulate them.

2. In cases of error or variation in the amount of the shares passed on, the person who has issued the document supporting the right to the deduction shall issue and, where appropriate, forward to the acquirer a new document of the same nature as that which he or she has received. the previous one, within the maximum period of 30 days from the date of the occurrence or the known fact of the rectification.

3. Invoices and equivalent documents must comply with the general rules governing the duty to issue and deliver an invoice for employers and professionals.

Article 82. Time limits for the correction of deductions.

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

2. However, in the case of errors in the clearance of the shares passed on, which determines an increase in the quotas to be deducted, the correction may not be made after one year after the date of issue of the invoice or equivalent document.

Chapter II

Returns

Article 83. General assumptions for repayment.

1. The taxable persons shall be entitled to the return of the income which they would have wronged in the Treasury on the occasion of the payment of their tax debts, in accordance with the provisions of Article 155 of the General Tax Law and in the provisions governing the recognition of the right to return and the way in which it is carried out.

2. Also, taxable persons who have not been able to make the deductions originating in a period of liquidation in accordance with the procedure laid down in Article 64 of this Regulation for exceeding the amount of the same in respect of the quotas They shall be entitled to apply for repayment of the balance to their existing advantage as at 31 December of each year in the declaration-settlement for the last settlement period of that year.

3. The Economic and Finance Ministry of the Autonomous Government may authorise the right to request the return of the balances in favour of the taxable person existing at the end of each liquidation period in relation to sectors or companies certain to justify the occurrence of frequent non-tax deliveries under the provisions of Article 16 of this Regulation.

Article 84. Returns on export.

1. Taxable persons who, during the preceding calendar year, have made final exports to third countries or shipments of a definitive nature to the peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the EEC a total amount exceeding the limit determined by the autonomous government of the Canary Islands, shall be entitled to the balance to be repaid to its existing favour at the end of each settlement period up to the limit resulting from the application of the general tax on the total amount, in that period, of the exports and shipments mentioned.

In the case of taxable persons who are exporters of products taxed by one of the increased rates of this tax, the above limit shall be raised to the increased tax rate applicable to the total amount of such consignments and exports.

The taxable persons who, during the current calendar year, arrive to make definitive exports or shipments of goods of a definitive nature to the peninsula, Balearic Islands, Ceuta, Melilla or any other Member State of the EEC in excess of the figure referred to in the first subparagraph of this Article, may benefit from the refund scheme provided for in this Article, subject to the limits and conditions laid down therein, from the liquidation period in which the exceed the said number of exports or shipments.

However, the taxable persons referred to in the preceding paragraph may, in the declaration-settlement for the period in which they have exceeded the indicated figure of exports and final shipments, apply for the repayment of the existing balance in favour of the balance resulting from the application of the above percentages to the amount of the exports and final shipments made since the beginning of the calendar year concerned.

2. In the Budget Law of each year of the Autonomous Community of the Canary Islands, the limits laid down in the preceding number may be amended.

3. For the purposes of this Article, the amount of exports and shipments indicated shall be the total sum of the corresponding consideration or, failing that, the values within the exported goods and, where appropriate, of those sent to the peninsula, the Balearic Islands, Ceuta, Melilla or any other Member State of the EEC.

4. The returns established in the preceding numbers may be requested in the statement-settlement for the settlement period to which they relate, subject to the formal obligations to be determined by the tax authorities. Canary Islands.

Article 85. Refunds on exports in the case of travellers.

1. In the case of travellers, as laid down in Article 14 (2) (2) of this Regulation, the refund of the quotas supported on the purchase of goods shall be in accordance with the rules laid down by the autonomous government of the Member States. Canary Islands.

2. Travellers must present the goods and invoices issued by the suppliers in the management office, so that they may be required to carry out the invoices, which must subsequently be sent by the traveller to the supplier.

Article 86. Guarantees of returns.

1. The Ministry of Economy and Finance of the Autonomous Government of the Canary Islands may require the taxable persons to provide sufficient guarantees in the cases of refunds regulated in this chapter.

2. The foregoing number of refunds for undue income covered by Article 83 (1) of this Regulation is exempted from the provisions of the preceding number.

Article 87. Refunds to persons not established in the Canary Islands.

Employers or professionals not established in the Canary Islands may exercise the right to the return of the Indirect Canarian General Tax which they have satisfied or, where appropriate, have been passed on to them, including the implicit tax burden on purchases of goods from retail traders, in accordance with the provisions of the following Articles.

Article 88. Requirements for the exercise of the right to return.

They are requirements for the exercise of the right to return referred to in the previous article:

1. That the persons or entities intending to exercise it are established in the peninsula, Balearic Islands, Ceuta, Melilla, other Member States of the European Economic Community or in third countries provided that the latter is credited to the reciprocity in favour of employers and professionals established in Spain.

2. To carry out business or professional activities in those territories subject to value added tax or similar tax.

The performance of these activities must be certified by certification issued by the competent authorities of the territories where the applicant's establishment is located. In the case of persons established in the peninsula, Balearic Islands, Ceuta, Melilla, this certification will be replaced by the photocopy of the high tax declaration on Economic Activities corresponding to economic activities. subject to the value added tax or a similar tax.

The certification referred to in the preceding paragraph shall produce effects in respect of all return applications filed by the same person or entity within twelve months from the date of the filing of the issue.

3. That during the period referred to in the application the interested parties have not made in the Canary Islands deliveries of goods or services of services subject to the General Tax Indirect Tax other than those listed below:

(a) The transactions in which the taxable persons of the tax are the persons for whom they are made pursuant to Article 42 (1) (2) of this Regulation.

(b) The carriage and the provision of ancillary services to the same exempted under the provisions of Articles 14, except number 2; 15; 16, number 1; 17, number 1, paragraph 3., 31 and 34, numbers 1, paragraphs 3. and 4., and 2 of this Regulation.

4. Persons or entities which, not being established in the European Economic Community, intend to make use of the right of return regulated in this Article 88 shall first appoint a representative resident in Spain, at whose charge the compliance with the relevant formal or procedural obligations and which will be jointly and severally liable in cases of improper return.

The Public Finance of the Autonomous Community of the Canary Islands may require that representative to be sufficient for these purposes.

5. Applications for repayment shall not be admissible for a total amount less than the amount determined by the autonomous government of the Canary Islands.

Article 89. Determination of the quotas to be returned.

1. The natural or legal persons in respect of which the requirements described in the foregoing articles are satisfied shall be entitled to request the return of the Indirect General Tax that they have incurred in the acquisitions or imports of goods or services which have been supplied to them in the period of time to which the application is made to the extent that the goods or services are used in the performance of the operations described in Article 60 (4), paragraph 1 (b), (c), (d) and (f) and paragraph 2. of this Regulation, or those referred to in Article 88 (3) (a) of that Regulation.

2. For the purposes of determining the quotas to be returned, the actual and actual destination of the goods or services acquired or imported shall be treated without the pro rata rule being applicable to them.

3. For the purposes of the above numbers, the following rules apply:

1. The tax quotas supported in the purchase or import of goods or services used exclusively in the conduct of transactions originating in the right to return must be returned in full to the person concerned.

2. The tax quotas incurred in the purchase or import of goods or services used only in part in the conduct of operations which give rise to the right to return must be returned to the persons concerned in the proportional part of the corresponds to the ratio of the portion of the value used in the performance of transactions that give rise to the right to return in respect of the total value of those goods or services.

4. The limitations and exclusions of the right to deduct provided for in Articles 60, Nos 2, 5, 6 and 7 and in Article 61 of this Regulation shall apply to refunds covered by this Article.

Title III

Special Regimes

Chapter I

General rules

Article 90. General rules.

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

1. The simplified scheme.

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 arrangements for agriculture and livestock farming.

2. The schemes referred to in the preceding number shall be optional, except for the special arrangements for travel agents.

3. Special schemes of an optional nature shall apply exclusively to taxable persons who have submitted the censal declaration of commencement or modification of the activities, which is established by the autonomous government of the Canary Islands.

4. The taxable persons of this tax shall communicate to the tax administration in the annual summary declaration the application, during the corresponding calendar year, of the following tax regimes:

a) Special arrangements for used goods.

b) Special arrangements for objects of art, antiques and collectibles.

Chapter II

Simplified regime

Article 91. Purpose.

The simplified scheme will have the purpose of determining the minimum amount of the Indirect General Tax quotas to be paid by the taxable person during each of the calendar years in which the special scheme is (a) in relation to the sectors of activity covered by the scheme.

Article 92. Subjective extension.

1. The tax taxable persons who meet the following requirements may be eligible under the simplified scheme:

1. Let them be physical people.

2. That its volume of operations for all its economic activities during the calendar year immediately preceding has not exceeded 50,000,000 pesetas.

3. They shall carry out with habituality and exclusively any of the economic activities established by the autonomous government of the Canary Islands.

The simplified scheme shall not be eligible for economic activities not covered by this special scheme, except those covered by the special arrangements for agriculture and livestock farming, and the retail trade activities which are wholly exempt under the provisions of Article 11 (1) (27) of this Regulation.

2. The option referred to in the preceding number shall relate to all the operations covered by Article 95 of this Regulation which are carried out by the taxable person.

3. The laws of the General Budget of the State may amend the billing limit referred to in paragraph 2. from the previous 1.

The amendment referred to in the previous paragraph shall be made, where appropriate, at the initiative of the Autonomous Community of the Canary Islands.

Article 93. Exercise of the right of choice.

1. The option for the simplified scheme shall be exercised at the time of submitting the censal declaration of commencement of the exercise of the activity or by the censal declaration of modification at the time of the first declaration-settlement corresponding to the calendar year in which it is to have effects.

2. The option for this special scheme shall have effect during the year in respect of which it was exercised and successive, except in cases where the circumstances referred to in Articles 94 et seq. of this Regulation have occurred.

Article 94. Exclusion from the simplified scheme.

1. The following are the determining circumstances of the exclusion of the simplified scheme:

1. Having exceeded the limit of operations provided for in Article 92 (1) (2) of this Regulation.

2. The waiver of the simplified scheme. Such waiver may not be exercised within three years from the date on which the application of this special scheme was requested.

3. The cessation of the business or professional activity or sector thereof to which the simplified scheme is applicable.

4. Regulatory alteration of the objective scope of the simplified scheme to determine the non-application of the special scheme to the economic activities carried out by the taxable person.

2. The circumstances 1. and 2. (a) of this Article, shall produce effects in the immediate year after the year in which they are produced or, where appropriate, the request for resignation is submitted.

The cessation of the business or professional activity shall determine the exclusion of the simplified scheme from the day following that in which it takes place.

Article 95. Objective scope.

The regime will be applied in respect of each of the sectors of activity, in isolation considered, that will be regulated by the autonomous government of the Canary Islands.

The determination of the economic operations in each sector should be carried out according to the rules of the Tax on Economic Activities to the extent that they are applicable.

Article 96. Content of the simplified scheme.

1. The taxable persons who have opted for the simplified scheme shall, by means of an objective estimate, determine, by reference to each sector of activity to which this special scheme applies, the minimum amount of the fees to be paid. in concept of General Indirect Tax Canarian.

2. The objective determination of the quotas referred to in the preceding number shall be carried out by the taxable person himself by imputation to his economic activity of the indices or modules which, with specific reference to each sector of activity and to the The Ministry of Economy and Finance of the Autonomous Government of the Canary Islands would have set the corresponding annual period of time.

3. The initial allocation shall be made by the taxable person on the basis of the data prevailing at the time of the start of each annual period of application of the special scheme, without prejudice to the relevant regularisation if the average data of the The corresponding period would be higher than 25 per 100.

4. In the case of initiation after 1 January or cessation before 31 December in the economic operations of a sector of the activity covered by this special scheme, the data used as the basis for determining the indices or modules shall be calculated in proportion to the period of time in which the activity sector has been exercised by the taxable person during the calendar year concerned, without prejudice to the regularisation referred to in the preceding number 3.

5. In the event of an omission or distortion in the accounts of an operation by a taxable person who has not opted for the simplified scheme, the tax charges payable may not be lower than those which would result from that scheme, without prejudice to the of the penalties and interest for late payment.

6. Taxable persons who have opted for the simplified scheme and who have incurred in default or distortion of the indices or modules referred to in the preceding number 2 shall be obliged to pay the tax quotas resulting from the the application of that scheme, without prejudice to the penalties and any interest for late payment.

7. Imports and transmissions of immovable property and those of qualified investment goods in respect of the transmission, in accordance with Article 73 of this Regulation, shall be excluded from the simplified scheme. activities subject to the simplified scheme.

Article 97. Determination of the volume of operations.

1. For the purposes of this second chapter, the total amount, excluding the Indirect Canarian General Tax itself, of the supplies of goods and services effected by the taxable person shall be understood by volume of transactions. during the calendar year, including those exempted or not subject to the tax.

2. Operations shall be understood to have been carried out where the tax accrual or, where applicable, has occurred, pursuant to Article 40 of that Regulation.

3. For the purpose of determining the volume of transactions, they shall not be taken into account where they are occasional in relation to those made by the taxable person:

1. Real estate operations.

The real estate deliveries will be considered.

2. The financial operations referred to in Article 11 (1) (18) of this Regulation.

3. The supply of qualified goods as investment in respect of the transfer.

For the purposes of the rating of investment goods, the provisions of Article 73 of this Regulation shall apply.

Chapter III

Special System of Used Goods

Article 98. Special arrangements for the goods used.

Employers who habitually carry out transmissions of used goods may choose to apply the special scheme regulated in this Article subject to the provisions of Article 90 (4) of this Regulation.

Article 99. Concept of used goods.

For the purposes of the foregoing Article, any used assets of a durable nature that may be of a lasting use shall be considered to be used, having been used prior to the acquisition by the subject Liability for this special scheme may be used for its specific purposes, either directly or after repair.

Operations that are intended to provide the used objects with their original characteristics will be considered repairs.

They will not have the following used goods condition:

1. Those acquired from other taxable persons, except in cases where the supplies in respect of which the purchase was made had not been subject to or been exempt from the tax or, where appropriate, had been taxed at the same time to the rules laid down in this Chapter III.

2. Those imported directly by the transmission.

3. Those which have been used, renewed or processed by the transmitting subject itself.

In any case it will be understood that there is a renewal of goods when the cost of the materials incorporated to restore them is superior to that of the acquisition of the used objects.

For the purposes of this paragraph 3, operations which are intended to alter the specific purposes for which such goods are used shall be considered to be processing.

4. Waste from industrial processes.

5. Packaging and packaging.

6. Integrated in whole or in part by stones or precious metals, or by natural or cultured pearls.

7. The recovery materials.

Article 100. Content of the system of used goods.

1. In the supply of used goods by taxable persons who have opted for the special scheme governed by this Chapter III, the taxable amount shall be 30 per 100 of the consideration determined in accordance with the provisions of this Chapter. in Articles 48, 49 and 50 of this Regulation.

2. However, the taxable person may choose to consider the difference between the consideration of the transfer and the acquisition of the well-transmitted, determined in accordance with the provisions of those Articles and Documented. The option shall relate to all the operations corresponding to this special scheme carried out by the taxable person and shall have effect during subsequent calendar years until its revocation.

In no case shall the tax base referred to in the preceding subparagraph be less than 20 per 100 of the consideration of the transmission determined as laid down in Articles 48, 49 and 50 of this Article. Regulation. However, in the case of used passenger cars, this percentage shall be 10 per 100.

Chapter IV

Special arrangements for art objects, antiques, and collection objects

Article 101. Special arrangements for objects of art, antiques and collectibles.

Any taxable person who carries out with habituality supplies of movable property which has the consideration of artistic objects, antiques or collectibles may choose to apply this special scheme.

The option must be made within the time and form provided for in Article 90 (4) of this Regulation.

Article 102. Concept of art objects, antiques and collectibles.

1. For the purposes of this special scheme:

1. Object of art: paintings and drawings made by hand and sculptures, prints, prints and lithographs, provided that in all cases they are original works.

2. Antiques: useful or ornamental furniture, excluding works of art and collectors ' items, which are more than one hundred years old and whose fundamental original characteristics have not been altered by modification or repairs carried out over the last 100 years.

3. Collection objects: those with an archaeological, historical, documentary, bibliographic, ethnographic, paleontological, zoological, botanical, mineralogical, numismatic or philatelic interest and are acceptable to be part of a collection.

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

1. Those constructed, renewed or transformed by the taxable person himself or on his own account.

2. Those integrated in whole or in part 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 had not been subject to the tax or had been exempt from the tax, without the transmission having originated the right of deduction in favour of the transfer.

4. Those imported directly by the taxable person.

Article 103. Content of the special regime of art objects, antiques and collectibles.

1. In the supply of works of art, antiques and collectors ' items made by taxable dealers who have opted for the special scheme provided for in the preceding Articles of this Regulation, the taxable amount shall be 30%. by 100 of the consideration determined in accordance with Articles 48, 49 and 50 of this Regulation.

2. However, the taxable person may choose to consider the difference between the consideration of the transfer and the acquisition of the well-transmitted, determined in accordance with the provisions of those Articles and Documented. The option shall relate to all the operations corresponding to this special scheme carried out by the taxable person and shall have effect during the subsequent calendar years until its revocation.

In no case shall the tax base referred to in the preceding subparagraph be less than 20 per 100 of the consideration of the transmission, as determined in accordance with Articles 48, 49 and 50 of this Regulation. mentioned above.

Chapter V

Special arrangements for travel agents

Article 104. Special arrangements for travel agencies.

1. The special arrangements for travel agencies shall be applicable.

1. For operations carried out by travel agencies when they act in their own name in respect of travellers and use goods delivered or services provided by other employers or professionals in the course of the journey.

2. To the operations carried out by the organizers of tourist circuits in which the previous circumstances are present.

2. The special arrangements for travel agents shall not apply in respect of the following transactions carried out by the taxable person:

1. Those made in the name and on behalf of the customer.

2. Those carried out using only means of their own for the realization of the journey.

Article 105. Nature.

The special regime of travel agencies is not a waiver.

The taxable persons to whom the special scheme applies shall not be eligible for the simplified special scheme.

Article 106. Impact of the tax.

1. In the operations to which this special scheme applies, taxable persons shall have to take into account the tax rate of the Indirect Canarian General Tax.

The provisions of the preceding paragraph shall apply even in cases where the addressee of the operation is another travel agent, whether or not subject to this special scheme.

2. However, the quota may not be entered on the invoice separately from the taxable amount and shall be understood in such a case to be included in the price of the transaction.

Article 107. Exemptions.

Services provided by travel agents are exempt from the tax when supplies of goods or services, purchased for the benefit of the traveller and used to make the journey, are made outside the territory of the European Economic Community.

In the event that the aforementioned supplies of goods or services are only partially carried out within the territory of that Community, only the part of the service provision of the agency shall be exempt from the exemption. This is the case for those outside the European Economic Community.

Article 108. Place of conduct of the taxable event.

The operations carried out by the agencies in respect of each traveler for the performance of a trip shall be considered as a single service, even if several deliveries or services are provided in the framework of the Travel.

This benefit shall be deemed to be made at the place where the agency has established the seat of its economic activity or has a permanent establishment from which it carries out the operation.

Article 109. The tax base:

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

For these purposes, the agency's gross margin is considered the difference between the total amount charged to the customer, excluding the Indirect General Tax Canarian that severely the operation and the discounts and effectively granted, and the actual amount, taxes included, of the supplies of goods or services which, carried out by other employers or professionals, are acquired by the agency for use in carrying out the journey and are directly for the benefit 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, including those provided by retail agencies to wholesalers.

For the determination of the gross margin of the agency, the transactions exempt from the tax shall not be computed in accordance with the provisions of Article 107 above.

2. They shall not have the consideration of services provided for the performance of a journey:

1. Buy-sell or foreign exchange transactions.

2. Mediation services in the rental of buildings or of means of transport.

3. The costs of telephone, telex, correspondence and other analogues made by the agency for the preparation of the trip.

Article 110. Determination of the tax base.

1. The taxable persons shall determine the taxable amount by transaction in accordance with the provisions of the preceding Article of this Regulation.

2. However, they may choose to determine in a comprehensive manner, for each tax period, the taxable amount corresponding to the operations to which the special scheme applies and do not benefit from exemption, in accordance with the following procedure:

1. The total amount charged to the clients, General Indirect Canarian Tax included, corresponding to the transactions whose accrual has occurred in the said liquidation period, will be subtracted the total amount of cash, taxes included, supplies of goods and services provided by other employers or professionals who, acquired by the agency in the same period, are used in the course of the journey and are in the interests of the traveller.

2. The overall tax base shall be multiplied by a hundred per cent of the amount resulting, and the product shall be divided by a hundred plus the general tax rate laid down in Article 54 of this Regulation.

This option shall have effect on all transactions subject to the special arrangements made by the taxable person during the following and successive years, as long as he does not express his resignation in the form established.

3. The option for the overall determination of the tax base shall be exercised by instance, in accordance with the model determined by the Economic and Finance Ministry of the autonomous government of the Canary Islands, presented in the form determined in the corresponding rules governing the tax administration.

This option shall have effect in respect of all transactions subject to the special arrangements made by the taxable person during the following and successive years, as long as he does not express his or her waiver with the intended formal requirements in the preceding paragraph.

4. The taxable amount determined in accordance with the preceding numbers may in no case be negative.

Article 111. Deductions.

Travel agencies to which this special scheme applies may practice their deductions under the terms set out in Title II of this Regulation.

However, they will not be able to deduct the tax passed on the acquisitions of goods and services that are directly in the interest of the traveler and made for the realization of the journey.

Chapter VI

Special Regime for Agriculture and Livestock

Article 112. Nature and scope of application.

The special arrangements for agriculture and livestock farming shall apply to holders of agricultural, forestry or livestock holdings in which the requirements laid down in this Chapter VI are met, provided that they have not renounced to the same, as provided for in the following Article.

Not to be considered as holders of agricultural, forestry or livestock holdings under this special scheme:

1. The owners of farms or holdings that give them in leases or in aparceria or who in any other way yield their exploitation.

2. Those who carry out livestock holdings under integrated livestock farming.

Article 113. Waiver of the special scheme.

The holders of the economic holdings referred to in the preceding Article may formalise their renunciation of the special scheme governed by this Chapter in the manner laid down in the applicable regulatory rules, by means of the presentation of the corresponding census declaration.

The waiver will produce effects as long as it is not revoked by the person concerned and, in any case, for a minimum period of three years.

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

For the purposes of this Chapter, agricultural, forestry or livestock holdings shall be considered to be directly derived from natural products, plants or animals from their crops or holdings, and in particular following:

1. Agricultural activities in general, including the cultivation of ornamental, aromatic or medicinal plants, flowers, mushrooms, spices, seeds or plants, whatever the place of production of the products, even if they are of greenhouses or nurseries.

2. Those dedicated to forestry.

3. Livestock farming, including poultry farming, beekeeping, cuniculture, sericiculture and the rearing of species of blacklisted species, provided that it is linked to the exploitation of the soil.

4. Fish farms, crustaceans and fish farms.

Article 115. Non-application assumptions.

They shall not be eligible for the special scheme governed by this Article for any of their economic activities:

1. Those who, by themselves or through third parties, submit all or part of the products they obtain in their holdings to this special scheme for processing, processing or manufacturing of an industrial character.

In any event, any processing activity for the exercise of which the discharge is required shall be presumed to be an industrial character under the heading of such a nature of the rates of the Economic Activities Tax.

For the purposes of this section, no transformation processes are considered:

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

dicing, disinfection or disinsectation.

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. Those who deliver the products they obtain on their agricultural, forestry or livestock holdings under this special scheme mixed with others acquired from third parties, even if they are identical or similar in nature, except for those who have the object of mere preservation.

Article 116. Activities excluded from the special arrangements for agriculture and livestock farming.

1. The special arrangements referred to in this Chapter shall not extend to non-commercial holdings or to independent livestock farming.

2. For these purposes, independent livestock farming shall be considered as such in the Economic Activities Tax, with reference to the whole of the livestock activity directly exploited by the taxable person.

Article 117. Ancillary services included in the special scheme.

1. On an ancillary basis, the holders of the holdings described in Article 112 of this Regulation may provide to third parties, with means ordinarily used on their holdings, and without loss of the option to the special scheme, services which contribute to the performance of their productions and, in particular, the following:

1. The work of planting, planting, cultivation, harvesting and transport.

2. The packaging and packaging of the products, including drying, cleaning, peeling, cutting, silage, storage and disinfection.

3. The breeding, keeping and fattening of animals.

4. Technical assistance.

The provisions of this paragraph shall not extend to the provision of professional services by agricultural engineers or technicians.

5. The leasing of the tools, machinery and facilities normally used for the production of their agricultural, forestry or livestock activities.

6. The elimination of harmful plants and animals and the fumigation of plantations and land.

7. The operation of irrigation or drainage facilities.

8. Felling, entresing, chipping and cutting of trees, cleaning of forests and other complementary services of forestry of a similar nature.

2. The provisions of the preceding number 1 shall not apply if, during the preceding year, the amount of turnover for the set of ancillary services provided exceeds 20 per 100 of the total operating volume of the holding agricultural, forestry or livestock.

3. For the purposes of the preceding numbers, the total amount, excluding flat-rate compensation, of the supplies of goods and services, shall be considered as a volume of transactions, without taking into account the indirect taxes which Such operations shall not include any ancillary and ancillary costs, such as commissions, transport or insurance, which are separately charged to the acquirer and all referred to in the relevant calendar year.

Real estate transactions, financials, and the delivery of investment goods will not be computed for these purposes.

Article 118. Performance of differentiated economic activities.

1. Holders of agricultural, forestry or livestock holdings may benefit from the special scheme provided for in this Article, even if they simultaneously carry out different business or professional activities.

In such a case the special scheme will only produce effects with respect to the activities to which it relates.

For the purposes of the preceding paragraph, differentiated business activities shall be considered, without prejudice to the provisions of Article 66, number 2 of this Regulation:

1. The placing on the market of natural products in fixed establishments situated outside the place where the agricultural, forestry or livestock holdings are located.

2. The recreational activities of a recreational nature.

This character shall not be such as livestock holdings which have as their object the breeding of cynetic species for subsequent sale.

3. Those of livestock independent from the exploitation of the soil.

4. Ancillary services not included in this special scheme.

2. In the cases referred to in the preceding number, the goods or services acquired or imported for the purpose of carrying out such holdings shall be deemed to have been acquired for their exclusive use on agricultural, forestry or livestock holdings. even if the goods obtained therein are marketed by the taxable person himself in fixed establishments situated outside the place where they radiate them.

Article 119. Obligations of taxable persons under the special arrangements for agriculture and livestock farming.

1. The taxable persons to whom this special scheme applies shall not be subject, in respect of the exercise of these activities, to the obligations for the payment of the tax, the accounting or registration fees or, in general, to other formal obligations which may be laid down in regulation.

The provisions of the preceding paragraph shall apply to the supply of investment goods used in those activities.

2. The above number 1 shall not apply in the case of the following operations:

1. Imports.

2. The operations referred to in Article 42 (1) (2) of this Regulation shall apply.

3. The transmissions of real estate.

Article 120. Reimbursement of compensation.

The taxable persons referred to in the foregoing Article shall be entitled to receive a flat-rate compensation of 1 per 100 for the quotas of the Indirect General Tax that have been passed on to them acquisitions of goods or services which have been provided to them.

This percentage shall apply to the selling price of natural products obtained on their holdings and to the ancillary services referred to in Article 117 of this Regulation.

For the purposes of determining such prices, the indirect titles to which such operations are taxed shall not be computed or ancillary and ancillary expenses, such as commissions, packaging, transport, transport, insurance or financial, charged separately to the acquirer.

Article 121. Subject to reimbursement of compensation.

1. Employers or professionals who acquire natural products or ancillary services directly from taxable persons under the scheme shall be required to repay the compensation referred to in the previous Article. of agriculture and livestock farming.

2. In the cases referred to in paragraph 1 above, the reimbursement of compensation shall in any event be carried out at the time of the provision of the ancillary services or the delivery of agricultural, forestry or livestock products, any day set for the payment of the price which serves as a basis, by subscription of a receipt, which the acquirer must issue in duplicate, making it easier to copy.

However, the effective payment of compensation may be delayed by agreement between the parties concerned.

3. In any event, the Public Finance of the Autonomous Community of the Canary Islands shall refund the compensation for the final shipments to the peninsula, the Balearic Islands, Ceuta or Melilla or to another Member State of the European Economic Community, as to the final exports by the taxable persons subject to this special scheme.

Article 122. Cases of non-application of compensation.

1. The provisions of Articles 120 and 121 above shall not apply where the taxable persons to whom the special arrangements for agriculture and animal husbandry apply carry out the deliveries or exports of natural products from fixed commercial establishments situated outside the place where they radiate their agricultural, forestry or livestock holdings.

2. They shall not be required to repay the compensation referred to in this Chapter by the acquirers of the goods or recipients of the services listed below:

1. Taxable persons also covered by the system of agriculture or livestock farming in relation to acquisitions for the development of the economic activities covered by this special scheme.

2. Those who do not have the status of entrepreneurs or professionals or do not carry out the acquisitions of agricultural, forestry or livestock products in the exercise of their business or professional activity.

3. Taxable persons who are taxable persons who are exclusively exempt from the tax, other than those listed in Article 60 (4) of this Regulation.

3. In no case shall it be possible to apply compensation for consignments which the taxable persons covered by the special scheme provided for in this Chapter carry out their own fixed commercial establishments, whatever the place where they are located. located.

Article 123. Resources.

Any disputes that may arise with reference to the compensation for this special scheme, both as regards the origin and the amount of the compensation, shall be considered as a tax liability for purposes of the relevant economic and administrative complaints.

Article 124. Infringements.

The holders of agricultural, forestry or livestock holdings to whom the special rules laid down in this Chapter do not apply shall be reintegrated into the Public Finance of the Autonomous Community of the Canary Islands. compensation unduly paid, without prejudice to the other obligations and liabilities which are payable to them.

Article 125. Deduction of compensation for the special arrangements for agriculture and livestock farming.

1. Taxable persons who have satisfied the compensation referred to in Article 120 above may deduct their amount from the fees payable for the operations they carry out, applying the provisions of Title II of this Regulation. of the deductible supported quotas.

2. In order to exercise this right, taxable persons shall be in possession of the receipt issued by themselves referred to in Article 121 (2) of this Regulation.

Title IV

Transient regime

Article 126. Deductions under the transitional arrangements.

In addition to those provided for in Title II of the First Book of this Regulation, the taxable persons of the Indirect General Tax will be able to make the deductions relating to stocks and regulated investment goods. in this Title, in the form and with the requirements laid down therein and in the Management Regulations approved by the autonomous government of the Canary Islands.

Article 127. Requirements for deductions under the transitional arrangements.

1. Only those taxable persons established in the Canary Islands may make use of the deductions under the transitional arrangements.

For these purposes, the taxable persons who have the seat of their economic activity, a permanent establishment or their domicile shall be considered to be established in the Canary Islands.

2. They shall determine the right to deduct body property which, on the date of entry into force of the Indirect General Tax, is integrated into the business or professional assets of the taxable person exercising the deduction and are materially located in the Canary Islands.

For the purposes referred to in the preceding paragraph, goods shall be treated as materially situated in the territory of the Canary Islands which, on the date indicated, are in temporary export situation and the means of transport which, on that date, is registered in the territory of application of the tax, even if they are situated outside the tax.

3. For the purposes of the deductions from the General Tax on the Traffic of Enterprises governed by this Title, the goods shall be deemed to be acquired and integrated into the assets of the taxable person or, where appropriate, transmitted and excluded from such assets. on the date on which the tax due was incurred for the transmission of the tax on the part of the price concerned.

4. Without prejudice to the provisions of this Title, the exercise of the right to transitional deductions governed by this Title shall be subject to compliance with the rules laid down in Title II above, in so far as it is application.

For the purposes of the foregoing paragraph, they shall be assimilated to the contributions of the General Indirect Canarian Tax supported, the transiently deductible in accordance with the provisions of this Title.

The deductible proportion applicable to these deductions will be, in any case, the one corresponding to the first year of the tax, without resulting in the adjustment of deductions for investment goods.

However, the pro rata provisionally applicable during the year 1993 will be the one that would result if the Indirect General Tax Canarian was in force during 1992.

5. It shall be a prerequisite for the exercise of the right to deduct, to be in possession of the invoice issued by the suppliers in which the tax which justifies such deduction must be passed on if, in accordance with the law, it should expressly state the impact.

In cases where the employer or professional exercising the right to deduct is the taxable person liable to pay the deductible tax dues, the right to the deduction shall be conditional on the justification for the entry of the quotas the deduction of which is intended.

6. Taxable persons who have not been able to make the deductions for the transitional arrangements under the procedure provided for in this Title, having exceeded the amount of the deductions from the amount due, may make use of the right to return in accordance with the provisions of Title II, Chapter II, Book I of this Regulation.

Article 128. Deductions relative to stocks in concept of the island Arbitrio on luxury.

The taxable persons of the Indirect General Tax Canarian who carry out activities of production or wholesale of body goods may deduct the quotas of the Arbitrio insular on the luxury supported by the acquisition or satisfied in the import of goods or products that integrate their stocks at the time of the beginning of the Indirect General Tax.

The criteria for valuation of the inventory of inventories shall be those admitted in the Corporate Tax or, where applicable, in the Income Tax of the Physical Persons, provided that the criterion adopted coincides with the applied in any of the aforementioned taxes by the taxable person in the corresponding declaration-settlement.

Article 129. Transitional arrangements for investment goods.

1. The taxable persons referred to in Article 127 of this Regulation may deduct 4 per 100 from the consideration corresponding to the acquisition of qualifying personal property as investment, the transmission of which would have been state and not exempt from the General Tax on the Traffic of Enterprises.

2. However, in the case of goods the transmission of which has been granted as a bonus from the General Tax on the Traffic of Enterprises, the amount to be deducted shall be reduced by the same proportion as that applicable in the allowance. In the case of exemption and non-application of the tax, no deduction shall be made.

3. For the purposes of this Article, investment goods shall be deemed to be those depreciable body assets which are included in the fixed assets of the undertakings.

The consideration corresponding to the acquisitions of these goods will be determined in accordance with the provisions of Article 12 of the General Tax Regulation on the Traffic of Enterprises, approved by Royal Decree 2069/1981, dated October 19.

4. This deduction shall relate to investment assets acquired during the year immediately preceding the entry into force of the Indirect General Tax Canarian, which appear in the assets of the companies and are duly inventoried in 31 of December 1992.

Book II

Arbitrio on the production and import of the Canary Islands

Preliminary Title

Nature and scope of application

Article 130. Nature of the Arbitrio.

The Arbitrio on the production and import is an indirect state tax that taxes the production or production, as well as the importation of all kinds of personal property in the Canary Islands, according to the Law and its provisions for development.

Article 131. Space scope.

The scope of the arbitration is defined in Article 2 of this Regulation for the Indirect General Tax.

Title I

Production and processing of goods

Chapter I

Delimitation of the taxable fact

Article 132. Taxable fact.

It is subject to the arbitration of the production or production of body furniture, carried out by businessmen in the development of their business activity.

They shall also have the consideration of the operations subject to, the execution of works that have as their object the construction or assembly of movable personal property by the employer, regardless of whether or not they are used provided by the owner of the work.

Article 133. Concept of employer.

For the purposes of this arbitration, persons or entities who habitually carry out business activities in the production or manufacture of goods have the consideration of businessmen.

Habituality may be credited in the form set out in Article 5. of this Regulation.

Article 134. Concept of business activity in the production of goods.

1. It is business activities for the production of goods that involve the own account of material and human factors of production, or of one of them, in order to intervene in the manufacture or manufacture of goods.

Extractives, agricultural, livestock, forestry, fishing, industrial and other similar are considered to be included among the production activities.

2. For the purposes of arbitration, they do not have the consideration of production or production activities designed to ensure the preservation or commercial presentation of the goods, defined as usual manipulations by customs legislation.

3. They shall be understood as being carried out in the course of business, transmissions or transfers of use to third parties of all or part of the goods produced or manufactured by the employer, where they take place on the occasion of the cessation of the business. exercise of the economic activities which determine the subjection to the arbitration.

Chapter II

Exemptions

Article 135. Exemptions in internal transactions.

1. They are exempt from arbitration:

1. Production or production of natural goods by farmers, cattlemen, fish farmers or shipowners of fishing vessels, obtained directly from crops, holdings or catches, when they are sold, transmitted or delivered without having been subject, prior to their transmission, to any processing process.

Those activities for which the discharge is required under an item of the Economic Activities Tax shall be presumed to be processing.

The following operations are not considered to be transformed:

(a) acts of mere preservation of the goods, such as pasteurisation, refrigeration, freezing, drying, sorting, cleaning, packing or conditioning, peeling, decutting, chipping, cutting, disinfected or disinsic.

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. The paintings, drawings, watercolors, prints, prints, lithographs and original sculptures made by their authors.

The scope of the exemption for the production or production of these goods shall be determined in accordance with Article 11 (1) (26) of this Regulation.

3. The production or production of the goods of first necessity for the feeding indicated below and defined in the statistical headings which are also indicated:

Leches and natas of heading Nos 04.01 and 04.02; mantequillas of heading Nos 05,05.00.10.00.I. and 04.05.00.90.00.0.B; peas and fresh beans of heading Nos 07.08.10 and 07.08.20; chickpeas, beans, lentils and peas of the heading 07.13; wheat of heading 10.01; maize of heading 10.05; rice of heading 10.06; oils in containers of more than five litres, of soya of heading No 15.07, of groundnut of heading No 15.08, of heading No 15.09, of heading No 15.09 15.12, of heading 15.14 and of maize of heading No 15.15; margarine of heading 15.17; sugar of heading No 15.14 Heading No 17.01, with the exception of coloured or flavoured sugar of heading No 17.01.01.00.00 J, and other syrups and sugars of heading 17,099,90,0.00 C; powdered milk preparations of heading No 19.01.10.02.2.96.J and 19.01.10.00.2.98.F those which have replaced them with animal fat originating from fats of plant origin; milk preparations included in headings 19.01.90.90.99.H, and fresh, frozen or salted fish, caught or landed by fishing vessels Community in island ports enabled, from catches made in any Fishing grounds for direct consumption.

4. The construction of vessels essentially affected by international maritime navigation and those dedicated exclusively to rescue, maritime assistance or coastal fishing, when these vessels are registered in the Canary Islands.

It shall also be exempt from the production or production of objects necessary for its operation which are incorporated into the vessels referred to in the preceding paragraph, including the fishing equipment.

The exemptions provided for in this paragraph 4. shall apply under the conditions and in compliance with the requirements laid down in Article 15 (1) of this Regulation for the Indirect General Tax.

2. It is exempt from the production of equipment made by undertakings established in the Canary Islands belonging to the economic sectors protected by Law 50/1985 of 27 December 1985 on Regional incentives for the correction of the interterritorial economic imbalances.

The exemption does not reach the parts and parts of the aforementioned goods.

Article 136. Exemptions for exports and operations treated as such.

The following operations are exempt from the arbitration:

1. The production or production of goods sent definitively to the Spanish mainland and the Canary Islands and to any other Member State of the European Economic Community or to third countries definitively exported by the or a third party acting in the name and on behalf of the third party.

These exemptions are subject to compliance with the requirements of Article 14 (1) of this Regulation for the Indirect General Tax.

2. The production or production in the Canary Islands of goods intended for the supply of the following vessels:

1. Those engaged in international maritime navigation.

2. The affections to the rescue or the maritime assistance.

3. Those affected by coastal fishing, without the exemption being extended to the provisions on board.

4. Those belonging to the navies of the Member States of the European Economic Community.

The exemptions included in this number 2 will apply under the conditions and with the requirements set out in Article 15, number 3, of this Regulation in relation to the Indirect General Tax Canarian.

3. The production or production of goods intended for the purpose of the aircraft of commercial, regular and irregular aircraft belonging to the Armed Forces of the Member States of the European Economic Community and of the intended for rescue activities.

The exemption is also conditional on compliance with the requirements set out in Article 15 (3) and (6) of this Regulation as soon as they are applicable.

Chapter III

Devengo

Article 137. Accrual of the Arbitrio.

In the production or production of goods at the discretion of the acquirer, it will become available at the time of its making available to the acquirers.

Chapter IV

Passive Subject

Article 138. Taxable person of the arbitration.

Are taxable persons of this arbitrage the natural or legal persons, as well as the entities referred to in Article 33 of the General Tax Law that carry out the activities that constitute their taxable fact, according to the provisions of Article 132 and consistent with this Regulation.

Article 139. Impact of arbitration.

1. The taxable persons referred to in the preceding Article shall have to bear in full the amount of the fees payable on the acquirers of the goods which are the subject of the arbitration, with the latter being obliged to bear it, provided that the (a) adjustment to the provisions of this Regulation, whatever the stipulations existing between them.

2. The impact of the arbitration and its rectification will be in accordance with the rules contained in Articles 43 to 46 of this Regulation for the Indirect General Tax.

Chapter V

Tax Base

Article 140. Tax base.

1. The taxable amount of the arbitrage in the production or production of movable tangible property shall be the total amount of the constraint received on the occasion of the transfer of such goods.

2. The rules laid down in Articles 48, 49 and 50 of this Regulation, relating to the determination of the taxable amount of supplies of goods and services in the Indirect General Tax, shall be applicable as soon as they come, in the Arbitrio on the production and import of goods in the Canary Islands.

3. The autonomous government of the Canary Islands may, as a rule, lay down the application of objective estimation schemes for the determination of the taxable amount, in specified sectors or economic activities, where the taxable amount of the In the preceding year, the taxable person has not exceeded 100 million pesetas.

Title II

Importing goods

Chapter I

Taxable

Article 141. Import of goods.

1. They are subject to the arbitration of imports of movable tangible property, whatever their origin, the purpose for which they are intended or the condition of the importer.

For these purposes, the entry of goods, final or temporary, in the Canary Islands, including their waters and their airspace, is understood to be imported.

2. The operations referred to in Article 9 (2) (1) shall also be considered to be imports. of this Regulation.

3. They shall be regarded as transactions treated as exports within the meaning of Article 9 (2) (2), (3), (4). and 5.

of this Regulation, under the conditions set out in numbers 2, 3 and 4 of the same precept.

Chapter II

Exemptions

Article 142. Exemptions for imports of goods.

Imports of the following goods are exempt from the arbitration:

1. Imports of goods covered by Articles 19, Nos 1 to 12 and 14; 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 32, 33, 34 and 35, numbers 1, 3 and 4 of this Regulation.

The exemption will be conditioned in each case to the fulfilment of the same requirements set out in those precepts to apply the tax benefit to the imports of the same goods in the Indirect General Tax Canarian.

2. Imports of vessels registered in the Canary Islands, which are essentially concerned with the use of inter-island maritime navigation and aircraft intended to be used exclusively by companies which are essentially engaged in air navigation interinsular as well as the objects incorporated in such means of transport which are necessary for their exploitation.

The holding shall be subject to compliance with the requirements laid down for the application of the exemptions provided for in Article 19 (2), (3), (4) and (5) relating to the importation of the vessels and aircraft of the companies, affections to international navigation and the objects incorporated thereto, with reference to the marine or interisland air navigation.

3. The goods of first necessity intended for food, the production or processing of which is exempt from the arbitration pursuant to Article 135 (1) (3). of this Regulation.

4. The assets of equipment belonging to economic sectors protected by Law 50/1985 of 27 December. Also, equipment intended for agricultural, livestock, forestry and fishing holdings and those used for the use of potabilizers, desalination and treatment plants, as well as those for the processing of solid, toxic and health protection for the environment.

The exemption does not extend to parts and parts of the aforementioned goods.

For the purposes of this exemption they do not have the condition of goods of equipment that would have been used prior to their importation in the Canary Islands.

5. Fertilizers, seeds, insecticides and pesticides used in agriculture.

6. The goods destined for the State, Autonomous Community of the Canary Islands and Local Authorities of the Canary Islands as soon as they come to their favor and prior certification, issued by the competent agency, that they are acquired from their budgets. Also, goods destined for the Member States of the European Economic Community, in equal conditions.

Chapter III

Devengo

Article 143. Accrual.

The accrual of the imports of goods in the arbitration will be determined in the form provided for in Article 41 of this Regulation to define the accrual of the imports of goods in the indirect General Tax.

Chapter IV

Liabilities and tax liability subjects

Article 144. Taxable persons and persons liable for tax.

taxable persons and liable for the tax.

1. In the case of imports of goods, the taxable person is the natural or legal person, as well as the entities referred to in Article 33 of the General Tax Law, which make such imports.

2. They are considered importers:

1. The addressees of the imported goods, whether they are acquirers, transferee or owners of the goods, or consignees acting in their own name on the importation of the goods.

2. Travellers, for the goods they drive when entering the territory of the Canary Islands.

3. The owners of the goods in the cases not referred to in paragraphs 1. and 2. precedent.

4. In the absence of the foregoing, the natural or legal persons who have the possession of the imported goods.

3. The persons and entities referred to in Article 47 (2) shall be jointly and severally liable for the tax, subject to the limitations laid down in Article 3 (3).

Chapter V

Tax Base

Article 145. Tax base.

1. In imports the tax base will be the result of adding to the the following concepts as they are not included in the same:

1. Any charges or taxes which may be payable on the occasion of importation, with the exception of the own arbitration, the Indirect General Tax and the Excise.

2. Ancillary and complementary expenditure, such as commissions, packages, ports, transport and insurance, which will be produced up to the first place of destination in the Canary Islands.

2. For the purposes of paragraph 1 above, the shall be as defined in Article VII of the General Agreement on Tariffs and Trade and referred to imported goods in the Canary Islands when, with that destination, the they send from any other territory of the European Economic Community or are exported from a third country.

The first place of destination is the one shown in the transport document under which the goods are introduced into the Canary Islands and, failing that, the first place in which the relief operations are carried out or separation of the cargo within those territories.

Ancillary and ancillary expenses include the following:

1. The fees for the operation of port and airport works and services.

2. Rates for general and specific port and airport services.

3. Fees for the recognition of imported goods (sanitary, veterinary, agronomical and commercial).

4. The legally enforceable fees relating to obtaining the documents necessary to make the import dispatches.

5. Interest on deferred payment from the importer.

6. The fees of professionals involved in the imports, such as those of customs agents, agents and freight forwarders.

7. The transport, insurance, unloading, handling, weighing, measuring, storage, custody, parking and other that occur until unloading in the first place of destination.

3. In reimports of goods which have been the subject of repairs or work outside the Canary Islands, the tax base shall be the sum of the following concepts:

1. The taxable amount corresponding to those re-imports in accordance with Article VII of the General Agreement on Tariffs and Trade.

2. The levies, taxes and charges referred to in paragraph 1 (1). and 2.

Title III Common Provisions

Article 146. Type of charge.

The tax rates applicable in the arbitration on production and imports in the Canary Islands shall be those specified in the rates approved as Annexes to Law 20/1991 of 7 June, or in the rules which supplement them or modify.

Article 147. Tax quota.

The share of this arbitrage is the result of applying to the tax base the type of tax that corresponds.

Article 148. Deductions and returns.

1. Taxable persons may deduct from the fees of the arbitrage accrued as a result of the transactions they carry out, those of the same tax which they have incurred in the acquisitions or imports of movable tangible property, in so far as such goods are used in production activities which are subject to and not exempt from the arbitration, without prejudice to the following number 2.

2. Those who make final shipments or exports to the rest of the national territory or abroad, respectively, shall be entitled to the refund of the quotas supported by the goods actually referred to or exported.

3. In the territory of the right to the deduction or return of the arbitration, it shall apply, as soon as they proceed, the rules laid down in Title II of this Regulation for the Indirect General Tax Canarian.

Single additional disposition.

The fixing of the value of the amounts fixed in ecus in this Regulation shall be at the exchange rate of 137, 263 pesetas laid down in the Ministerial Order of 28 February 1990 or set out in the subsequent amendments thereto.

First transient disposition.

1. They shall not be subject to Indirect General Tax Canarian:

1. The transactions subject, even exempt, to the General Tax on the Traffic of Enterprises and to the Arbitrio insular on luxury whose accrual would have occurred prior to the entry into force of the Indirect General Tax Canarian.

In the case of partial accruals, the General Indirect Tax will not be subject to the aforementioned transactions for the part of consideration that the General Tax on the Traffic in Companies would have accrued.

2. The sale, transfer or delivery of official protection housing, including garages and yeasts which are jointly transmitted with them, which have been arranged and documented in public writing before 1 January 1993 and those whose respective contracts had been submitted for the administrative visa prior to that date before the competent body in the field of housing.

The above paragraph will not apply to business premises.

The non-subjection provided for in paragraph 3 shall not preclude the right of deduction for the fees of the Indirect Canarian General Tax which, if any, are passed on to them as a result of acquisitions or imports of goods or services, in so far as they are used for the conduct of such operations, provided that they have given rise to the right of deduction in the event of the entry into force of this tax.

Second transient disposition.

1. Upon the entry into force of the Indirect General Tax and provided that the goods to which they relate have been made available to the acquirers, the whole of the quotas of the General Tax on the Traffic of Companies that tax the following transactions:

1. The lease-sale contracts.

2. Leasing contracts and other leases with an option to purchase when the lessee had committed to the lessor before 1 January 1993 to exercise that option.

The commitment referred to in the preceding paragraph must be credited by any means of proof admitted in law and notified in writing to the lessor before 1 January 1993.

3. Sales of houses with deferred payment of the price.

However, taxable persons may be able to enter the tax payments due at the end of the calendar quarter in which the payments after 31 December 1992 are payable.

The tax shares whose accrual is anticipated pursuant to this number may not be passed on to the recipients of the transactions subject to tax until such time as subsequent payments are payable. the day of entry into force of the Indirect General Tax Canarian.

In the cases referred to in paragraphs 1. and 2. of this number shall be the responsibility of the lessee for the exercise of the transitional arrangements for investment goods where, in accordance with the provisions of this Regulation, it would be appropriate.

2. The operations referred to in this provision shall not be subject to the Indirect Canarian General Tax.

Transitional provision third.

1. The leases of goods concluded before 1 January 1993 shall be subject to the General Tax Indirect Tax for the part of the price payable on the basis of the entry into force of the said tax, even if the Such transactions would have resulted in the accrual of the Tax on Inheritance Transmissions prior to that date.

2. Except as provided for in the preceding number, the lease contracts subject to the General Tax on the Traffic of Enterprises for the part of the price that would have accrued such a tax.

3. They shall not be subject to the Indirect Canarian General Tax, the administrative concessions intended to transfer the right to use buildings or facilities at ports and airports, the constitution of which would have been taxed by the tax on Patrimonial Transmissions and Documented Legal Acts.

Transitional disposition fourth.

During the transitional period referred to in Article 5 of Regulation No 1911 /91/EEC of 26 July 1991 on the application of the provisions of Community law in the Canary Islands, subject to the provisions of Article 5 of Regulation (EEC) No 1364/90, in their numbers 4, 5 and 6, they shall be exempt from the Arbitration on production and import of the production or production of the goods referred to in the following activities:

National Classification of Economic Activities/Activities/

130/Oil refining. /

151/Production, transportation and distribution of electrical energy. /

152/Manufacture and distribution of gas. /

160/Captation, water purification and distribution. /

231/Extraction of building materials. /

233.1/Sea salt extraction. /

24/Manufacture of construction products except for the manufacture of abrasives. /

25/Chemical industry. /

311/Funditions. /

312/Forging, stamping, drawing, stamping, cutting and repressing. /

313/Treatment and coating of metals. /

314/Manufacture of structural metal products. /

315/Construction of large deposits and coarse calderry. /

316/Manufacture of tools and articles finished in metals excluding electrical equipment. /

319/Independent mechanical workshops. /

321/Construction of agricultural machines and agricultural tractors. /

322/Construction of machines for working metals, wood and cork; useful equipment and parts for machines. /

324/Construction of machines and apparatus for the food, plastic and rubber industries. /

330/Construction of office machines and computers (including installation). /

34/Construction of machinery and electrical equipment. /

35/Manufacture of electronic equipment (excluding computers). /

362/Construction of bodies, trailers and dumpers. /

37/Shipbuilding, ship repair and maintenance. /

382/Construction, repair and maintenance of aircraft. /

391/Manufacture of precision, optical and similar instruments. /

391-2/Manufacture of prosthetic and orthopaedic appliances. /

41/42/Food, beverage and tobacco industry. /

433/Industries of natural silk and their mixtures, and of man-made and synthetic fibres. /

435/Manufacture of knitted genres. /

436/Finishing of textiles. /

437/Manufacture of impregnated carpets and fabrics. /

439/Other textile industries. /

452/Manufacture of craft and custom footwear (including orthopaedic footwear). /

453/Garment in clothing and clothing accessories. /

454/Custom clothing and clothing accessories. /

455/Garment of other articles with textile materials. /

46/Wood and cork industry. /

473/Paper and cardboard processing. /

474/Graphic arts and ancillary activities. /

475/Edit. /

481.2/Recauchutee and cover repair. /

481.9/Manufacture of other NOCP rubber articles. /

482/Transformation of plastic materials. /

491/Jewelry and jewelry. /

494/Manufacture of games, toys and sports articles. /

495/Miscellaneous manufacturing industries. /

Transient disposition fifth.

The charge of the tax debts corresponding to the taxes and levies abolished by Law 20/1991 of 7 June and Law 14/1992 of 5 June, will be carried out in the same time and form established by the rules in force before 1 January 1993.

Single repeal provision.

From the entry into force of this Royal Decree will be repealed the Royal Decree 1081/1991, of 5 July, for which the rules of development regarding the Arbitrio are dictated on the production and import in the islands The Canary Islands, established by Law 20/1991 of 7 June.

Single end disposition.

This Regulation shall enter into force on 1 January 1993.

ANNEX

1. For the purposes of this Royal Decree, it shall be deemed to be:

1. Vessels: those falling within heading Nos 89.01; 89.02; 89.03; 89.04 and 89.06.10 of the tariff of the Arbitrio on Production or Import in the Canary Islands.

2. Aircraft: aerodines operating with the aid of a propellant machine falling within heading 88,02 of the tariff of the Arbitrio on Production and Import in the Canary Islands.

3. International maritime navigation: that which is carried out by ships through sea waters in the following cases:

(a) When, starting from the Canary Islands or a foreign country, conclude in another country or vice versa.

(b) When vessels are affected by offshore navigation and are engaged in the exercise of an industrial, commercial or fishing activity, other than transport, provided that the duration of the non-stop navigation exceeds Forty-eight hours.

The vessels affected by the installation, maintenance and repair of submarine cables are included in the previous paragraph.

4. International air navigation: that which is carried out from the territory of the Canary Islands or from a foreign country to another country or vice versa.

5. Equipment for the supply of goods: the provisions on board, fuels, fuels, lubricants and other oils for technical use and accessories on board.

This is meant by:

(a) On-board visions: products intended exclusively for the consumption of crew and passengers.

(b) Fuels, fuels, lubricants and other oils for technical use:

the products intended for the feeding of the propulsion organs or the operation of the other machines and equipment on board.

(c) Products on board: consumer goods for domestic use, those intended for the feeding of animals transported and consumables used for the conservation, treatment and preparation on board goods transported.

6. Normal fuel and fuel tanks: the communications directly with the propulsion bodies, machinery and equipment.

7. Peninsula: the Spanish peninsular territory.

2. It shall be treated as international, sea or air navigation, carried out by vessels or aircraft which, on the basis of the Canary Islands, is concluded on the peninsula, the Balearic Islands, Ceuta or Melilla, or vice versa.

3. Inter-island, maritime or air navigation shall be considered to be carried out between ports or airports in the Canary Islands.

Given in Madrid to 4 December 1992.

JOHN CARLOS R.

The Minister of Economy and Finance,

CARLOS SOLCHAGA CATALAN