Modelo 420 (quarterly IGIC return)

What it is

Modelo 420 is the self-assessment for IGIC, the indirect tax of the Canary Islands. Each quarter the business adds up the IGIC it charged, subtracts the deductible IGIC it paid, and declares the difference to the Canary Islands Tax Agency (ATC). It is the Canarian counterpart of modelo 303 for VAT.

Who files it

According to the ATC, it is filed in general by IGIC taxpayers under the general regime, unless they are obliged to, or have opted to, keep their IGIC books on the ATC portal through immediate information supply (the SII). It is also filed by taxpayers in certain special regimes: used goods, works of art and antiques, and travel agencies.

Deadlines

The period is quarterly and the return is filed within the first twenty days of the following month: 1 to 20 April, July and October. January, which follows the fourth quarter, is open for the whole month, 1 to 31. With bank direct debit the window shortens to the first fifteen days of the month, and in January to the first twenty. If the last day is a non-working day, the deadline moves to the next working day, and the direct-debit window extends by the same number of days.

How it is filed

Filing is electronic, except for individuals whose only activity is renting out property and whose volume of operations did not exceed 50,000 euros the previous year. The ATC’s help program generates a file with the .dec extension, which is then uploaded to the portal; submitting it through the general electronic registry has no validity and counts as not filed. The form allows collective filing of up to 20 self-assessments in the cases the ATC sets.

Common mistakes

• Mixing up the modelo 420 deadlines with modelo 303: the IGIC fourth quarter is filed throughout January, not until the 30th.
• Submitting through the general electronic registry.
• Including in the 420 supplies located outside the Canary Islands, which carry VAT.
• Calculating with an out-of-date IGIC rate.
• Forgetting the shorter window when direct debit is chosen.

How Frihet handles it

Frihet calculates a preview of modelo 420 from your invoices and expenses and generates the .dec file in the ATC’s format, validated against its schema; it includes reverse-charge operations. It does not file the return: you upload the file on the ATC portal, or your advisor does.