The retail sector in the Canary Islands has achieved a decisive milestone in its strategy against Asian e-commerce giants. Starting July 1st, the Spanish Tax Agency will apply a new resolveed tariff of €3 per category of product imported from outside the European Union. This measure eliminates the competitive advantage of platforms like Temu, Shein, and AliExpress, which until now have flooded the Canary Islands market with rock-bottom prices and minimal tax burden.
The industest association, represented by Asodiscan, celebrates this ruling as the conclude of what they considered a “tax haven” for online retailers. The association’s secretary general, Alfredo Medina, an executive at El Corte Inglés, maintains that the measure finally guarantees a level playing field with local businesses that pay taxes on every sale. The lobby’s pressure now seeks a larger objective: the definitive elimination of the IGIC (Canary Islands General Indirect Tax) exemption for purchases under €150, in effect since 2016. Paradoxically, Asodiscan does not have a website to verify its members.
The revenue trap of this new tax lies in its application by tariff code (TARIC) rather than per package received. A consumer who acquires T-shirts, a mobile phone charger, and a knife set in a single shipment will have to pay an additional €9, as these are three different categories. This automatic price increase doubles the price of the cheapest items and discourages mass consumption of products from the Far East.
The Canary Islands Government, through its Finance Minister Matilde Asián, has confirmed that the archipelago will not be exempt from this European regulation. As part of the European Union’s customs territory, the islands will be subject to the new H7 and H1 declaration procedures. The Customs Administration has thus put an conclude to months of legal debate regarding whether the islands’ special tax regime allowed for the avoidance of this levy, clarifying that the measures will apply in full to Canary Islands residents.
The regulatory alter has sparked well-founded fears among consumers about the potential return of high handling fees charged by parcel delivery companies. Consumer advocacy organizations warn that private carriers could exploit the new bureaucracy to charge management fees exceeding the value of the goods. This double economic barrier, in addition to the €3 tariff, aims to redirect consumer spconcludeing towards shopping centers and brick-and-mortar stores on the islands.
The strategic offensive of traditional Canarian businesses is justified by their adherence to safety and sustainability standards that Asian platforms typically circumvent. While large local distributors must guarantee European labor standards, direct imports operated in a gray area of control. With this regulation, the online bargain paradise faces its most restrictive transformation yet, favoring local businesses.
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