Pursuant to the consolidated text of the Regulatory Law of Local Public Treasuries, approved by Royal Legislative Decree 2/2004, of 5 March 2004, the Tax on Construction, Installations and Works is only mandatory in those municipalities in which it has specifically been made a requirement.
Law 20/1991, of 7 June 1991, amending aspects of taxation under the economic and fiscal framework of the Canary Islands, created the Canary Islands Indirect General Tax (Value Added Tax not being applicable in the Canary Islands). Also, given the specific circumstances of the Canary Islands as an ultra-peripheral region of the European Union, the Excise Tax on Imports and Deliveries of Goods in the Canary Islands was created by Law 24/2001, of 27 December 1991, on tax, administrative and social measures.
The Tax on Production, Services and Imports, created by Law 8/1991, of 25 March 1991, is only applicable in the cities of Ceuta and Melilla. (Value Added Tax is not applicable these cities).
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