Frihet for Canary Islands businesses: IGIC and Modelo 420

If your tax residence is in the Canary Islands, your indirect tax is IGIC and your quarterly return is the Modelo 420, filed with the Agencia Tributaria Canaria (ATC), not the Modelo 303 with the AEAT. Frihet calculates the 420 from your invoices and expenses.

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Sound familiar?

IGIC, not VAT

The general IGIC rate is 7%, with other rates (0%, 3%, 15%...) depending on the goods or service. Charging VAT on a Canary Islands invoice is not a rate mistake: it is the wrong tax.

A Modelo 420 every quarter

It is filed with the ATC in the first 20 days of April, July and October, and throughout January for the fourth quarter. The Q3 2026 return is due from 1 to 20 October.

Imports and AIEM

Goods entering the Canary Islands can carry import IGIC and, depending on the product, AIEM: a separate tax with rates of 5%, 10% or 15% and its own ATC forms.

How Frihet helps you

Modelo 420 calculated from your data

Frihet groups the quarter's issued invoices and expenses by IGIC rate and fills in the 420 boxes in a preview you can review before filing.

Box-by-box preview

Working PDF for your advisor

Download the result as a PDF to review with your advisor. Filing in the ATC electronic office is done by you or your advisor.

Review before filing

Tax calendar with the 420

If your tax profile is the Canary Islands, Frihet's calendar shows the Modelo 420 instead of the 303.

420 instead of 303

What Frihet solves for you

Know what is due this quarter

The Q3 2026 Modelo 420 is due from 1 to 20 October; with direct debit, by the 15th. The Q4 return is due from 1 to 31 January.

Q3 deadline: 1 to 20 October

Reconcile the 420 with your invoices and expenses

Review the base and tax for each IGIC rate and the input IGIC before filing, using the data you already keep in Frihet.

Same data, no re-keying

Reach your advisor with the quarter reviewed

Share the calculation PDF and let your advisor check it and file it with the ATC, or file it yourself.

PDF to review

Frequently asked questions

Do I file the Modelo 303 or the 420 if my tax residence is in the Canary Islands?

The 420 with the ATC, if you are in the general IGIC regime. The 303 is the VAT return filed with the AEAT and is not filed in IGIC territory. Source: ATC Modelo 420 page.

When is the Q3 2026 Modelo 420 due?

From 1 to 20 October 2026; with direct debit, until 15 October. The fourth quarter is filed throughout January (direct debit until the 20th). If the last day is a non-business day, the deadline moves to the next business day. Source: ATC Modelo 420 page.

Does Frihet file the Modelo 420 for me?

No. Frihet calculates the return from your invoices and expenses and gives you a preview and a PDF to review. Filing is done in the ATC electronic office, by you or your advisor.

Is AIEM declared on the Modelo 420?

No. AIEM is a different tax from IGIC, with rates of 5%, 10% or 15%, and the ATC has its own forms for it (450, 451, 452 and 455). Source: ATC AIEM page.

Taxation

IGIC vs IVA Canary Islands 2026: Rates & What to Charge

IGIC is the Canary Islands' consumption tax, replacing IVA: 7% general rate vs 21%. Who pays it, how to invoice, REPEP and 2026 rules explained.

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Prepare your Modelo 420 with your own data

Start free and check the 420 preview with your invoices and expenses.