Currently, Shopify does not support the automatic management of different tax regimes within Spain, such as IGIC(Canary Islands) or IPSI (Ceuta and Melilla).
Configuration
In order to sell correctly in these territories, taxes must be configured using the Manual Tax Service. You can find this option in Shopify Admin > Settings > Taxes and Duties > European Union > Tax service.
Follow the steps below:
Access Tax service and select Manual Tax.
Return to the European Union screen and locate Spain.
In the Base taxes section, find the province where your store is located (Las Palmas, Tenerife, Ceuta, or Melilla).
Update the tax percentage for that province, rename the tax to IGIC or IPSI, and select Instead of the 21% Federal tax.
Example:
Las Palmas — 7% — IGIC — Instead of the 21% Federal tax.
Important considerations regarding Manual Tax configuration
Using the Manual Tax Service requires you, if you also sell online to other European countries, to manually adjust the taxes collected for each destination country.
When the Manual Tax Service is enabled, the automatic Cross-Border VAT Collection functionality is disabled. However, it allows you to manually define the applicable taxes for each country. This decision depends on whether your business operates under the One-Stop Shop (OSS) VAT regime.
Business types typically affected by this configuration
A business registered in mainland Spain that operates online sales and/or physical stores on the mainland, but also has a physical store located in the Canary Islands, Ceuta, or Melilla.
A business registered in the Canary Islands with a physical store operating within the same territory.
How do I configure multiple tax rates for these locations?
If your product catalog includes items subject to different tax rates, you must apply tax overrides using manual collections.
What is a tax override?
A tax override in Shopify allows you to apply a different tax rate (for example, 7% instead of 21%) to a specific group of products.
This is done by associating products with a manual collection and then applying the tax override to that collection.
Important:
Automatic collections cannot be used for tax overrides.
Step-by-step: configuring multiple tax rates in your Shopify store
1. Create a manual collection for the tax rate
From the Shopify Admin, go to Products > Collections.
Click Create collection.
Under Collection type, select Manual.
Assign a representative name, such as IGIC 7%, IPSI 0.5%, etc.
Optional: hide this collection from your sales channels:
Under Collection availability, click Manage.
Uncheck the channels where you do not want the collection to be publicly visible (the tax override will still apply).
Click Save.
2. Add products to the collection
Once the collection is saved:
Go to the Products section and click Browse.
Select the products to which this special tax regime should apply.
Click Done to add them.
Alternatively, you can add products individually:
Go to Products > All products.
Open the relevant product.
In the lower-right section, add the product to the appropriate manual collection.
Ensure the option Charge tax on this product is enabled (if applicable).
3. Apply the tax override
Go to Settings > Taxes and duties.
In the Spain section, click Add tax override.
Configure the following:
Destination zone: Spain or the specific province where the override should apply.
Collection: the manual collection you created.
Custom tax rate: enter the applicable percentage (e.g., IGIC 7%, IPSI 0.5%, Reduced VAT 10%).
Save the changes.
Verify that taxes are applied correctly
Create a test order containing a product included in the collection.
During checkout, Shopify should automatically apply the tax rate defined in the override.
What happens if taxes are not configured correctly in Shopify?
If you use VeriFactu to report your invoices to the Spanish Tax Agency (AEAT), it is essential that the tax applied to each order accurately reflects the correct tax regime (e.g. IGIC or IPSI) applicable to your business and products.
Proper tax configuration is critical to ensure that Comply, as well as other integrations with accounting and ERP tools, can correctly collect and process sales data, including orders, exchanges, and refunds, for accurate tax reporting to public authorities.
If taxes are not configured correctly, you may encounter the following issues:
The tax breakdown submitted to the AEAT may not comply with the legal requirements applicable to your autonomous community.
Invoices reported through VeriFactu may be rejected due to incorrect or missing tax rates.
This may result in tax compliance issues and require manual correction and resubmission of affected invoices.