Can You Claim Tax Back When Leaving Tenerife?

If you’ve been to Tenerife, you might have seen signs at the airport or in certain shops about tax-free shopping or even noticed a VAT refund office. It’s a bit of a head-scratcher, especially because Tenerife, part of the Canary Islands, operates under a slightly different tax system from the rest of Spain and the European Union. So, can you actually claim tax back when leaving Tenerife? Let’s dig into the details to clear up the confusion.

The Canary Islands’ Special Tax Status

First, it’s important to know that Tenerife, along with the other Canary Islands, is part of Spain but operates outside of the EU’s Value Added Tax (VAT) zone. Instead of VAT, the Canary Islands have a local tax system, which includes a tax known as IGIC (Impuesto General Indirecto Canario). IGIC is generally lower than VAT, with the standard rate at about 7%, whereas VAT in mainland Spain is 21%.

Because of this, prices on many goods in the Canary Islands can be lower than on the Spanish mainland or elsewhere in Europe. However, since Tenerife doesn’t use VAT, many people wonder whether tax refunds for tourists still apply here.

Can You Claim VAT Back in Tenerife?

Here’s where it gets a little tricky. Since Tenerife operates under its own tax regime (IGIC), you cannot claim back VAT on purchases made in the Canary Islands. VAT refunds typically apply to goods bought in EU countries for export by non-EU residents. However, since IGIC is already much lower than VAT, the price reduction is effectively built into the cost, so you’re already benefiting from lower taxes.

What’s the Deal with the VAT Refund Office at Tenerife Airport?

Many travellers get confused because there’s a VAT refund office at Tenerife South Airport. So, what’s the point of this office if VAT isn’t charged in Tenerife?

The VAT refund office at the airport exists for travellers who may have purchased goods in other parts of Spain or the European Union and are flying home from Tenerife. For example, if you visited mainland Spain and made purchases that included VAT, you could claim the VAT back at the Tenerife airport before you leave.

In short, this office processes VAT refunds on purchases made outside the Canary Islands but within the EU.

Can You Claim a Refund on IGIC?

As for goods purchased within the Canary Islands, unfortunately, you won’t be able to claim back the IGIC. The tax savings are essentially already built into the lower price tags on goods. If you’re buying products in Tenerife, you’ll be paying the lower IGIC instead of VAT, and there’s no refund system in place for IGIC.

However, if you’re exporting goods for business purposes or you’re a non-resident purchasing high-value items, it might be worth looking into specific tax-free shopping schemes or speaking with a tax advisor. But for most tourists, there isn’t an opportunity to claim back IGIC like you might with VAT in other EU countries.

Why Are There VAT Refund Offices in the Canary Islands?

To clarify: the VAT refund offices in Canary Islands airports, including Tenerife, are mainly for travellers who bought goods in mainland Spain or another EU country. If you bought items where VAT was applied (like in Madrid, Barcelona, or Paris), you can claim a VAT refund before leaving the EU, even if you’re departing from Tenerife.

This is why you’ll still see a VAT refund office at the Tenerife airport. Just keep in mind that it only applies to VAT-charged purchases made outside of the Canary Islands.

To qualify for a VAT refund in these cases, you’ll need:

• Receipts showing VAT was charged.
• The goods with you, in case they need to be inspected.
• Your passport or valid ID.

Pro tip: Always keep your receipts and check in with the VAT refund office if you’re unsure whether your purchases qualify for a refund.

Can British Tourists Claim VAT Back After Brexit?

Now that the UK has left the European Union, British tourists are considered non-EU residents. This means they are technically eligible to claim back VAT on purchases made in the EU. So, if you’re a UK resident and you purchased items in mainland Spain (or other EU countries) during your trip, you can claim VAT back when leaving from Tenerife.

However, as mentioned, this only applies to purchases made outside of the Canary Islands, where VAT is charged. Items purchased in Tenerife are subject to IGIC, and IGIC refunds are not available.

To claim VAT back as a British tourist, make sure you:

1. Request tax-free shopping at the point of purchase in Spain or the EU.
2. Keep all your receipts and invoices.
3. Present your documents at the VAT refund office at Tenerife South Airport before you leave.

Final Thoughts

To sum up:

• Canary Islands use IGIC, not VAT. You cannot claim a refund on IGIC for goods bought in Tenerife.
• VAT refund offices in Tenerife airports are for travellers who made purchases in mainland Spain or other EU countries.
• British tourists can claim VAT refunds for purchases made in the EU after Brexit, but this doesn’t apply to goods bought in the Canary Islands.

If you’re planning to do some shopping in Tenerife, enjoy the lower IGIC rates, which already provide some great savings compared to mainland Europe. If you’re travelling from mainland Spain or other EU countries and want to claim the VAT back before you head home, be sure to keep your receipts and visit the VAT refund office at the airport.

Do you have anything to add? Any personal experiences about shopping in Tenerife? Share them in the comments below!