SANTA CRUZ DE TENERIFE, 26th May (EUROPA PRESS) –
The candidate for the European elections from the Canary Coalition, Carlos Alonso, has vowed to work towards completely eliminating fiscal impediments to electronic commerce in the Canary Islands. According to him, it is imperative to adapt our tax system to the commercial dynamics of the 21st century, where globalization plays a pivotal role.
Alonso highlighted the disadvantages faced by electronic commerce in the islands due to the tax adjustments required at the fiscal boundary between the Canary Islands and the wider European VAT territory. This leads to significant transaction costs, delivery delays, and barriers in intra-community traffic in the Canary Islands. The nationalist candidate underlined that this situation often hinders local producers from accessing EU markets or prevents consumers from benefiting from commercial offerings and products available through e-commerce.
He expressed that failure to address this reality will result in a further disconnect from the European economy, leading to decreased competitiveness and missed commercial opportunities. In order to tackle the hurdles encountered by electronic commerce in the islands, Carlos Alonso outlined that the main aspect of the proposal is the elimination of tax compensations at the border between the Canary Islands and the EU. This includes applying a system similar to that outlined in Directive 91/680/EEC for intra-community distance sales or e-commerce, as well as for other intra-community transactions.
Furthermore, the plan involves implementing controls within the fiscal territory of the Canary Islands for imports to the islands and within the common territory for export operations, thus eliminating the current border control through tax declarations and customs. The goal is to extend the destination-based taxation system to the Canary Islands, akin to that for intra-community exchanges in the VAT regime.
Carlos Alonso stressed that the proposal will not affect the AIEM regime, customs-advantaged products under the REF, or products with more favourable trade conditions, such as agri-food products of the REA. He explained that this initiative is specifically targeted at goods traded under the e-commerce regime initially, with a potential extension to all goods exchanged by the islands abroad, excluding the aforementioned categories.
Preservation of the REF
The European Parliament candidate reiterated that the structural components of the REF, such as lower tax rates and consumption exemptions, will be maintained without the need for tax adjustments at the border. The system would operate similarly to the current management between national tax systems of Member States, considering transportation costs that limit any significant trade diversion due to tax differences.
Alonso stressed the necessity to enhance the census and information system of the regime, including adopting a single window system for Canary Island businesses to prevent fraud and provide legal certainty in cross-border transactions.
He emphasised that the system must ensure that all incoming goods are subject to subsequent payment or exemption declaration, which can be nullified through various means, particularly postal and courier services, to deter fraudulent activities while maintaining revenue collection.
Furthermore, Carlos Alonso proposed reinforcing the fiscal sovereignty of the IGIC regime, positioning the Canarian Treasury as a secondary tax authority in Spanish territory with responsibilities equivalent to the Spanish Tax Agency concerning VAT. He also suggested exploring the application of VAT directive-related jurisprudence from the Court of Justice of the European Union to modernise the tax system.
Statistics on E-commerce in the Canary Islands
The 2023 Annual Report on E-commerce in the Canary Islands, compiled by the Canarian Observatory of Telecommunications and the Information Society and the Canary Islands Agency for Research, Innovation and Information Society, presents key insights into the evolution of e-commerce in Spain and the Canary Islands.
According to the National Institute of Statistics (INE), in 2022, 1,043,326 individuals made online purchases in the Canary Islands, marking an 8.4% increase from the previous year. This growth signifies a shifting consumer mindset towards online shopping for convenience and comfort.
In 2022, 32.0% of companies with ten or more employees in the Canary Islands engaged in e-commerce sales, outpacing the national average and EU figures, with a turnover increase of 20.3% from the previous year.
A rise in the value of purchases within the 100 to 300 Euro range indicates growing confidence and ease among Canary Island consumers in online transactions. Preferences for national and non-EU sellers over community vendors were noted in 2023.
The most sought-after products included clothing, restaurant food, and beauty items, while a decline was observed in sports and tech products. Categories exceeding the national average in the Canary Islands were meal deliveries, grocery purchases, and entertainment such as movies and music.
