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REPEP is a special regime applied in the Canary Islands designed to simplify the tax obligations for self-employed individuals whose annual income does not exceed €30,000. It is particularly useful for small entrepreneurs or professionals with low billing.

Advantages of REPEP:

• Exemption from filing IGIC: You do not have to file quarterly forms (Model 420), only the annual Model 425.
• Invoicing without IGIC: IGIC is not included in the invoices issued.
• Simplified procedures: Less administrative burden compared to the general IGIC regime.

Tax obligations:

• Register for REPEP through the Canary Islands Tax Agency (ATC).
• Explicitly state on your invoices that you operate under REPEP with the mention: "Operación sujeta al REPEP según lo establecido en el artículo 10 de la Ley 4/2012 del IGIC." (Operation subject to REPEP as established in article 10 of Law 4/2012 of the IGIC.)

Can I deduct IGIC if I'm under REPEP?
No, since you are exempt from charging IGIC on your invoices, you also cannot deduct the IGIC paid on your expenses.

Limits:
If your annual income exceeds €30,000, you must deregister from REPEP and switch to the general IGIC regime.