In the offices of the large hotel complexes in the south, the name Nordotel SA has recently appeared in official bulletins. The Directorate General of Taxes has issued ruling 2.294 to clarify that, within the Canary Islands Tax Agency's digital ecosystem, transparency is mandatory even when there is not a single cent of tax to pay. The question posed was straightforward: What do we do with those currency exchange invoices, supermarket sales receipts, or receipts for services outside the islands that are not subject to IGIC (Canary Islands General Indirect Tax)?
The Tax Agency's response serves as a reminder that the duty to report extends far beyond the duty to pay. Companies that file monthly returns are required to maintain their accounting records electronically. This means that any invoice issued from the Canary Islands must be reported to the SII (Immediate Supply of Information) system, regardless of whether the transaction is exempt from VAT rules, involves a currency exchange, or is a retail sale in a supermarket. In the Canary Islands system, "exempt" does not mean "invisible."
For accountants, the real challenge comes when filling out form 417. The resolution details a series of boxes that are only completed at the end of the year: exempt or non-taxable transactions are accumulated for the self-assessment of period 12. For example, supermarket sales or regular currency exchanges must be recorded in box 58, while non-regular financial transactions have their own space in box 63, always at the close of the fiscal year.
The curious detail, and perhaps a small relief for the administrator, lies in the invoices received. The Tax Agency confirms that, although these invoices (whether exempt or not subject to tax) must be recorded in the SII ledger so that the accounting "puzzle" fits together, their amounts should not be included in any box of form 417. In other words, they are reported so that the administration knows they exist, but they do not alter the result of the self-assessment.
