Applying incorrect deductions or failing to justify them.

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General rate of 7%: This is the most common base, and is now applied to more products, including rubber and plastic articles that were previously subject to reduced rates.
Reduced rate of 3%: the reduction here extends to new categories such as mattresses and some furniture, as well as veterinary services.
New reduced IGIC rate of 5%: a new percentage is now established for energy drinks and soft drinks with added sweeteners.
0% tax rate: Products exempt from IGIC now include transport services within a single island, veterinary medicines, and certain medical equipment intended to compensate for physical deficiencies in animals.
On the other hand, there is also a change with respect to new organisations. The obligation to register in the business register to benefit from the special regime has been eliminated, which makes management easier for small business owners and professionals.

Importance of correctly filing Form 420 to avoid tax problems
As with any other type of tax return, it is important to pay sufficient attention when completing Form 420 for self-assessment of the Canary Islands general indirect tax. In this regard, we mention some of the common errors:

Entering incorrect identification data, especially the NIF or company name.
Not correctly specifying the quarter to which the declaration belongs.
Making calculations without knowing the tax base that applies to each product.

Omit sales information to which IGIC applies.
Finally, filing the declaration outside the established deadline.
To avoid all this, we recommend that you take some actions such as:

Make sure you are aware of current regulations and changes to the tax base for list of romania phone number different products.
Maintain all information and invoices on your sales and purchases to correctly apply the accrued IGIC and the deductible IGIC.
Carefully review the declaration before sending it and, if possible, seek advice if you have any doubts about the procedure to follow.

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Conclusion
At the Electronic Headquarters of the Canary Islands Tax Administration you will find detailed instructions on how to fill out Form 420. There you will find tutorials and even a section of frequently asked questions.

You can also request help from a tax advisor at authorized collaborating offices, assistance programs or even through the customer service of some accounting management software that helps you automate the process.

Frequently Asked Questions
What happens if I do not submit Form 420 on time?
In this type of violation, you may receive a surcharge on the tax rate, which increases over time. The penalty depends on the amount to be declared, the delay time and the taxpayer's own history.