Archives for October 2007

I.G.I.C. (Impuesto General Indirecto Canario) is an abbreviation that you are most likely to see on the bottom or back of menus when eating out.

The best way to think about it is as a form of VAT (value added tax). The Canary Islands are outside the EU VAT zone and therefore, as Spanish VAT does not apply, IGIC is could be considered to be the local VAT.

There are different rates ranging from 0% to 35%, but the one that you see most is the 5% added at restaurants.

That’s right – added. Over half the menus that you encounter will show prices exclusive of IGIC, meaning that when you ask for the bill the 5% will be added at this point.

If you are used to working in a business environment and adding VAT or an equivalent on at the final stage, then you probably won’t have too much difficult coping with this concept.

More likely, you are used to consumer pricing being VAT inclusive, and so having 5% added to your restaurant bill at the end of the meal can be anything from a few cent to a big shock!

Of course, there’s nothing you can do about it. Just don’t forget that everything will actually cost you a little bit more than you see on the price list (eg. 12,95EUR becomes 13,60EUR).

More importantly, don’t forget that this is a tax which the restaurant has to collect. It is not a service charge, so any tip you wish to give will have to come on top of the final, IGIC inclusive, price.