What is IPSI and what is it used for?

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The IPSI is of great importance in some specific regions of Spain. Throughout this article, we explore in depth what the IPSI is, its purpose, and how it differs from other more common taxes such as VAT and the Canary Islands IGIC. In addition, we will analyze the fundamental elements of the IPSI, the applicable tax rates, exemptions and reductions, the tax base and the declaration and payment procedure, among other relevant aspects.

Content


Elements of IPSI
How to invoice with IPSI?
How is the IPSI amount calculated?
IPSI tax rates
IPSI exemptions and reductions
IPSI declaration and payment procedure
Consequences of non-compliance with IPSI
Conclusion
Frequently Asked Questions
What is IPSI and what is it used for?
The IPSI or Tax on Production, Services and Importation is an indirect tax levied on the production, provision of services and importation of goods in the autonomous cities of Ceuta and Melilla. This tax is a fundamental resource for the financing of both cities, as it allows them to maintain their fiscal autonomy with respect to the rest of the Spanish territory, like the Canary Islands IGIC.

While VAT is a general tax throughout the country, IPSI is list of romania phone number specific and adapted to the economic particularities of Ceuta and Melilla, with exemption rates and tax rates provided in Ceuta that reflect the needs and realities of these regions. It also differs significantly from the Canary Islands IGIC, which is more complex and has specific regulations for the Canary Islands.

Elements of IPSI
There are some aspects of IPSI that you should know: in particular, the taxpayers, the taxable events and the tax base .

Taxpayers: Who is required to pay IPSI?
IPSI taxpayers are businesspeople or professionals who carry out production activities, provide services or import goods in Ceuta and Melilla. This includes those who carry out commercial operations within the autonomous cities, as well as those who import goods for use or consumption in these regions.

Taxable event: activities and operations subject to IPSI
The taxable event of the IPSI includes all production activities, provision of services and importation in the autonomous cities of Ceuta and Melilla. This means that the IPSI applies to all operations related to the production of goods, the provision of services such as consulting, auditing or engineering or the importation of products is subject to the payment of this tax.

Law 8/1991 of March 25 regulates the IPSI and establishes which activities are taxed by this tax, covering everything from the manufacture of goods to the provision of commercial and professional services.