Adapting to the New SII Canary Islands Requirements in October 2025 with SAP DRC

Introduction

Starting from October 2025, the Canary Islands Tax Agency will introduce significant updates to the SII (Immediate Supply of Information) system. These changes aim to align tax reporting with the latest fiscal requirements, particularly involving the new Regimes 18 and 20, and the inclusion of the AIEM (Arbitrio sobre Importaciones y Entregas de Mercancías en las Islas Canarias) in electronic submissions.

For SAP users leveraging Digital Reporting Compliance (DRC), these updates require not only the implementation of new SAP Notes but also adjustments in customizing activities such as tax code mappings and BAdI enhancements. This blog provides a concise overview of the key changes, relevant SAP Notes, and the essential steps to prepare your system for the new reporting obligations in the Canary Islands.

For General Information

You can inspect Francisco Hurtado ‘s blog for detail information.

“https://community.sap.com/t5/technology-blog-posts-by-sap/sii-tip-for-spain-5-sii-adjustments-for-canary-islands-october-2025/ba-p/14190825”

The Canary Islands Tax Agency published the “https://www.gobiernodecanarias.org/boc/2025/145/2677.html” containing a set of changes in the Canary Islands SII format.

New Regimes

The regime 08 (Transactions subject to VAT/IPSI) has been split into two separate regimes:

For incoming invoices:

08 → Transactions subject to VAT

18 → Transactions subject to IPSI

For outgoing invoices:

08 → Transactions subject to VAT

20 → Transactions subject to IPSI

The new regimes (18 and 20) are available in the SII customizing for both incoming and outgoing invoices. The SII will support the same combinations of regimes 18 and 20 as were previously supported for regime 08.

AIEM Tax Adjustments

A new XML structure <OperacionSujetaAIEM> has been introduced for transactions subject to AIEM (Arbitrio sobre Importaciones y Entregas de Mercancías en las Islas Canarias). This applies to:

• Supplies made by companies (on a regular or occasional basis for commercial reasons) of manufactured personal movable property as included in Annex IV of Law 24/2001.

• Imports of the goods listed in Annex IV.

Key Changes in Reporting

• The AIEM amount must be separated from the IGIC amount (<CuotaSoportada>).

• A summary of the AIEM amount must be reported in the new tag <CuotaAIEM>.

• For incoming invoices, the deductible amount (<CuotaDeducible>) must not include the AIEM amount.

• The total amount of the invoice (<ImporteTotal>) shall also include the AIEM amount in case this optional field is reported.

System Customizing

• Customers subject to AIEM are required to extend the Spanish tax procedure with their own AIEM transaction keys (e.g., ZAI for AIEM input, ZAO for AIEM output).

• A new customizing activity in SII is available to define these transaction keys: SSCUI 107186 – “Assign Settings for Accounting Key Tax Type”

• The Canary Islands SII process will check this customizing activity and populate the tags <CuotaAIEM>, <CuotaDeducible>, and <ImporteTotal> (if required).

Special Taxes Managed by the Canary Islands Tax Agency

A new XML structure <OperacionSujetaIIEEgestCAC> has been introduced for transactions subject to special taxes managed by the Canary Islands Tax Agency. These include, for example:

• Tobacco

• Petroleum-based fuels

• Wastes deposited in landfills for incineration and co-incineration

Key Changes in Reporting

When a transaction is subject to these special taxes, the following new tags under <OperacionSujetaIIEEgestCAC> must be populated:

• <ClaveImpuestoEspecial>

• <Exenta>

• <RegimenSuspensivo>

• <CuotaIIEECAC>

System Implementation

Customers with transactions subject to these special taxes can use the method SET_OUTPUT_DATA of BAdI EDOC_ADAPTOR to fill these fields in the XML structure.

SAP Notes

1. 3658757 - Electronic Documents for Spain SII Canary Islands IGIC Legal Change: Proxy Objects

2. 3658192 - Electronic Documents for Spain SII Canary Islands IGIC Legal Change: DDIC Objects

3. 3660178 - Electronic Documents for Spain SII Canary Islands IGIC Legal Change

The notes introduce the required adjustments in the SII framework to support the new Regimes 18 and 20, as well as the AIEM and the calculation of the new <TotalAIEM> tag.

If AIEM is applicable for your company, you must first enable AIEM (refer to SII Tip for Spain #5B: SII Adjustments for Canary Islands October 2025 – Enabling AIEM) and create the corresponding tax codes that include both IGIC and AIEM where applicable.

Additionally, the notes will enable the new values <ClaveRegimenEspecialOTrascendencia> 08, 18, and 20, as defined by the Canary Islands Tax Agency. You should execute the customizing activity “Assign SII Attributes to Tax Codes for IGIC” to align with the latest Tax Agency requirements. This may require creating new tax codes.

As previously mentioned, if your reporting involves special taxes, you can implement the necessary logic in the SET_OUTPUT_DATA method of BAdI EDOC_ADAPTOR to populate these fields, as no standard logic is provided for them.

An important DRC (Digital Reporting Compliance) customizing table to consider is FIESCAN_TAXCODEV – Assign SII Attributes to Tax Codes for IGIC.After implementing the relevant SAP Notes, you should review and maintain this customizing table to ensure proper mapping of tax codes in accordance with your company’s SII reporting requirements and the latest Canary Islands Tax Agency regulations.

This table plays a key role in defining the relationship between tax codes and SII attributes, such as Regime codes (ClaveRegimenEspecialOTrascendencia) and AIEM applicability.

Therefore, it is strongly recommended to:

• Validate that all existing tax codes are correctly assigned to their respective SII attributes.

• Create new tax codes if required for Regimes 18 and 20 or AIEM-related transactions.

• Perform consistency checks to ensure correct output of IGIC and AIEM values in SII electronic documents.

Maintaining this table accurately is critical to ensuring compliance and successful transmission of SII data to the Canary Islands Tax Agency.

Conclusion

The October 2025 SII changes represent a key milestone in the digitalization of tax reporting in the Canary Islands. By staying informed about the new regimes and implementing the corresponding SAP updates on time, companies can ensure smooth compliance and uninterrupted SII submissions.

These enhancements underline SAP’s ongoing commitment to helping organizations meet evolving local tax and e-reporting regulations efficiently. Early preparation, testing, and collaboration between finance and IT teams will be crucial to a seamless transition to the new SII framework.