The Tax Agency and the Department of Economy, Inland Revenue and Security of the Canary Islands simplify the formalities of e-commerce and exchanges with the Peninsula

Administrative streamlining

• The export SAD is eliminated in the Canary Islands-Peninsula exchanges for any shipment of less than 10,000 euros and for those addressed to a headquarters of the same company
• Individuals and small businesses will be able to use a simplified SAD for the import of goods in the Canary Islands, avoiding processing costs through third parties
• The import SAD may be presented by the seller or his representative, thereby allowing the buyer to avoid additional costs to those assumed at the time of purchase.

February 27, 2014.-
The Tax Agency and the Department of Economy, Finance and Security of the Government of the Canary Islands, in coordination with the Secretary of State for Trade of the Ministry of Economy, have adopted a series of measures with the aim of simplifying the administrative procedures to which goods are subjected in exchanges between the Canary Islands and the Peninsula, with the aim of reducing costs for operators and facilitating trade, especially in its electronic aspect. These measures, which are part of the administrative simplifications proposed by the Commission for the Reform of Public Administrations (CORA), will be implemented gradually and will be fully operational in the summer of this year.

Thus, in a first phase, in April, the dispatch of goods arriving in the Canary Islands through the State Postal and Telegraph Company will be expedited. To this end, a system has been developed through which individuals and business owners or professionals who are natural persons will be able to carry out customs and tax clearance of goods using a simplified form that will be available on the Electronic Headquarters of the Tax Agency ( sede.agenciatributaria.gob.es ).

In this way, the buyer avoids costs arising from processing the order through intermediaries. The only requirement is to be a natural person and have a certificate or electronic ID that allows the identification of the person submitting the declaration (SAD).

If the goods are from third countries, individuals may submit the simplified SAD , including the postal shipment reference number. In the case of intra-community shipments (goods originating from other Member States, or from the Peninsula and the Balearic Islands), Correos y Telégrafos will provide the recipient of the shipment with the summary declaration item number required to submit this Simplified Declaration.

Elimination of 2.2 million export SAD

The second phase of this programme to streamline trade exchanges comprises two types of measures: those aimed at simplifying administrative procedures in trade between the Canary Islands and the Peninsula, and those aimed at facilitating electronic commerce. The implementation of this second phase will take place before July, as operators require a period of prior adaptation of their computer systems.

Currently, to send any merchandise from the Peninsula to the Canary Islands, or vice versa, it is necessary to present an export SAD at the Customs from which the shipment is made and an import SAD at the Customs where the merchandise arrives. The export SAD is now eliminated in those cases where the value of the goods is less than 10,000 euros, or when the shipments do not involve a transfer of ownership; that is, shipments between headquarters of the same company. This measure means the elimination of more than 2.2 million export SAD.

To accredit the export for the purposes of the Value Added Tax (VAT), or the Canary Islands General Indirect Tax (IGIC), the exporter may download a certificate from the Electronic Headquarters of the Tax Agency ( Headquarters.agenciatributaria. gob.es ). This measure will reduce both direct and indirect costs for economic operators and facilitate trade between the Islands and the rest of the national territory.

Measures to facilitate electronic commerce

With the same expected calendar of entry into operation, and with the aim of facilitating electronic commerce between the Canary Islands and the Peninsula and vice versa, in addition to eliminating the export SAD , the possibility is enabled that the import SAD can be presented by the seller or by a customs representative of this, so that the buyer can receive the merchandise at home, without any other procedure and without additional cost to the amounts paid to the seller at the time of purchase. Payment of taxes levied on the importation of this merchandise would be made by the seller, on behalf of the buyer.

In this way, distance sales meet the two essential requirements that e-commerce must have for its development: simple procedures and the acquisition of the merchandise at a certain price, without the buyer having to bear unexpected additional costs later.

Commitment to administrative simplification

All these measures are an example of the commitment of the Tax Agency and the Government of the Canary Islands to simplify administrative procedures, as was already demonstrated in 2005 with the signing of the agreement for the creation of a Single Window for Foreign Trade in the Canary Islands.

As a result of this agreement, the VEXCAN project was developed, through which import and export declarations were unified into a single one that is submitted electronically and is valid for both the Tax Agency and the Government of the Canary Islands. VEXCAN has been operating since 2006 for exports and since 2007 for imports and has led to a great simplification of the procedures that operators have to carry out and a significant reduction in their associated costs.