Andorra Igi

Andorra IGI, 2026

Source-cited draft for ordinary indirect-tax working papers. No accountant has signed off this Guide. IGI is Andorra's domestic indirect tax; EU VAT return rules and box names cannot be assumed.

1. Who this applies to

IGI applies to taxable supplies made in Andorra by entrepreneurs/professionals and to imports, irrespective of importer status or purpose. Rental is an economic activity. Ordinary own-account supplies not exceeding EUR 40,000 annually do not confer entrepreneur status unless the person opts in; agriculture/livestock has the EUR 150,000 threshold. Exclude investment-asset disposals and IGI itself from the threshold and prorate on starting activity. Aggregate activities: non-agricultural activity exceeding EUR 40,000, or all activities including agriculture exceeding EUR 150,000, brings all activities within status. In the period the threshold is exceeded, regularise the year's supplies, rather than taxing only the excess. Law 11/2012, arts 4–5, 11–12; current regulation arts 1–2.

The voluntary option uses the census declaration, affects the application year and all economic activities and binds for at least three years. Renounce before the end of the year before the intended exit. Below-threshold status does not exempt imports or eliminate a separately arising statutory liability. Determine legal supplier/recipient, establishment and place of supply before applying a rate. Law arts 5, 52–53; regulation arts 1–2.

This method covers the ordinary domestic/import/reverse-charge calculation, business input recovery, credits/refunds and closure. Simplified, used-goods, investment-gold, financial-sector and traveller-refund administrative schemes need their own schedules. Property transactions require their actual seller/activity, property and deed facts; the core IGI method is below, while the separate ITP eligibility calculation is outside scope.

2. Rates, bands and thresholds

Qualifying healthcare under article 59 depends on the provider, CASS agreement, recipient and reimbursement conditions; not every medical service qualifies. Authorised education, listed nonprofit culture and exclusively residential leases have their specified conditions. These are 0%-rated supplies, not a generic exempt-without-credit category. Commercial/private cultural activities can instead be 2.5%. Optical/parapharmaceutical products do not obtain 2.5% merely from those descriptions, and cultural events do not automatically obtain 1%. Classify the actual item against the list. Arts 58–60 bis.

3. The base

Place, accrual and consideration

Goods are generally located where made available, with dispatch, installation, property and electricity exceptions. Imported goods sold by the importer/successors can be domestic supplies even though dispatch began abroad. For services, ordinary B2B follows the recipient business seat/PE actually receiving the service; ordinary B2C follows the supplier establishment, subject to the listed foreign-consumer and special rules. Property services, passenger transport, events, catering, electronic services, telecoms and vehicle hire have their own article 44 tests. Email communication alone does not make a service electronic. Arts 42–44.

Accrue goods when made available and services when performed, with the specific construction, commission and continuous-supply rules. Advance receipts accrue tax on the amount received. Periodic rent/utilities accrue when the relevant price is due; the statutory year-end rule applies where no price/due date or an interval beyond a year is set. Imports accrue at the customs-liability event, independent of payment date. Do not prepare an accrual return from bank movements alone. Arts 45–46.

The taxable base is total consideration, including ancillary commissions, freight, insurance, packaging and other taxes except IGI. Exclude genuine disbursements made in the customer's name/on its account and damages that are not consideration. Prior/simultaneous genuine discounts reduce the base. Article 47 ordinarily treats consideration as excluding IGI where it was not expressly charged, except where express charging is not required. Divide an amount by one plus the rate only when the document establishes an inclusive price; do not extract assumed IGI from any bank debit. Arts 47–48, 55.

For barter/noncash consideration use the statutory market-value rule; allocate a single price among different supplies by market values unless ancillary to one principal supply. Related-party, employer/employee and real-property transactions have the market-value minimum, subject to the express fully deductible additional-tax exception. Foreign currency uses the Customs exchange rate at accrual. Art 48.

Non-subject, exempt and zero-rate categories

Keep these separate in the workpaper. Article 6 includes qualifying transfers of an autonomous business unit, employment, specified samples/advertising objects, tax-character public activities, securities, noncommission financial transactions, insurance and other listed operations. A property-rental/occasional-development disposal does not automatically qualify as an autonomous-business transfer. Public commercial utilities and other listed activities remain subject despite the public supplier's name. Ordinary tax, CASS and transfers between own accounts are not purchases with recoverable IGI; a supplier invoice can nevertheless show taxable utilities or commissions. Art 6.

Exported goods and directly related qualifying services have article 14's exemption, requiring actual dispatch/export evidence; do not cite the 1% article as an export exemption. Business purchases for qualifying economic activity must still satisfy the input rules. International transport, gold and import exemptions use their own statutory conditions, not a universal zero-rate label. Traveller relief has a statutory invoice threshold above EUR 900 per individual item, foreign habitual residence, effective exit proof and noncommercial character, with 90% tax reimbursement within the stated three months; the scheme's actual administrative documents remain a separate procedure. Art 14.

Imports and reverse charge

Import goods through Customs: base = customs value plus otherwise excluded duties/levies and ancillary costs through the Andorran destination. Import IGI exists even where customs duty is zero. Use the DUA/equivalent validated Customs document, actual importer and goods classification; foreign VAT is not Andorran input IGI. A EUR 30,000 final assessed import base at 4.5% gives EUR 1,350 import IGI, deductible only under the input rules. A supplier invoice of EUR 30,000 does not prove that the final import base is EUR 30,000. Arts 11–12, 46, 51, 53, 65.

For a taxable Andorran supply by a non-established supplier to an established entrepreneur recipient, article 52 makes the recipient liable. Determine establishment and place first; SaaS brand or foreign bank account alone does not prove reverse charge. Report the self-assessed output and only the input amount actually deductible. Thus Spanish B2B consulting of EUR 5,000 received by an established Andorran taxable business normally produces EUR 225 output and, with full eligibility/documents, EUR 225 input. For a nonbusiness electronic-services customer the supplier-liability/representation rules must instead be tested; the customer is not automatically an entrepreneur reverse-charge debtor. Arts 43–44, 52, 63–65, 76.

Input recovery, mixed use and vehicles

Allow only IGI legally due on economic-activity acquisitions, once accrued and supported by the proper invoice, Customs document or qualifying deed. Correct defective documents before deduction. Ordinary current goods/services require exclusive allocation to qualifying business activity, including the statutory equivalent foreign activity and specified article 6(20) exception. Investment assets have a separate evidenced expected-use allocation. This is not an automatic EU-style turnover pro rata for every expense. Arts 61–67.

Passenger cars, trailers, mopeds and motorcycles within the investment-asset rule have a rebuttable 50% business-use presumption; the listed goods/passenger transport, driver-training, demonstration, commercial-agent and surveillance vehicles have a 100% presumption. The party challenging the presumption proves actual use. The linked fuel, repairs, parts, parking and toll costs follow the stated rule. A car held as trading inventory is different: CV0312-2024 confirms that a dealer's vehicle lent for the shareholder's private use fails exclusive allocation and gives no proportional input deduction on that current asset. Do not extend that inventory ruling to erase the investment-car presumption, or claim all car costs merely because the company bought the car. Art 63; CV0312-2024, response.

Article 64 blocks specified jewellery/precious goods, food/drinks/tobacco, recreation and client/staff hospitality, with the stated stock-for-resale/industrial-use and other exceptions. Travel, hotel and restaurant services have the express income-tax-deductibility exception; not every restaurant bill is blocked regardless of facts. Missing evidence is held unresolved, not deemed deductible or permanently denied by a bank-name classifier. No deduction is allowed to the specified nonbusiness public reverse-charge entities. Art 64.

Deduct in the receipt/accrual period or later within the three-year entitlement window. Track excess credit separately from the three-year clock starting with its originating return. Pre-activity inputs can qualify to the later business extent; article 67(5)'s special time adjustment uses five-year movable and ten-year immovable useful lives. A changed expected use requires correction, except justified destruction/loss not attributable to the taxpayer. Do not invent a universal annual capital-goods adjustment from those pre-activity lives. Arts 65–69.

Adjustments, settlement and closure

Returned packaging, later discounts, cancelled supplies and price changes require article 49 adjustments and a corrective document sent to the recipient. Bad-debt relief needs a statutory trigger, such as six months overdue, insolvency or qualifying proceedings, and the secured/insured/public/related-party/foreign-customer restrictions. Partial receipts allocate tax proportionately; reflect relief in both parties' registers where required. Output correction ordinarily has a three-year limit; reductions can use the prescribed refund or return correction route. Increased/decreased input has article 69's different timing and amended-return rules. Arts 49, 56, 69; regulation art 14.

Settle output, including reverse charge/self-supply, less eligible input and valid carried credit. Preserve base/rate/date/document and input-use allocation per line; aggregate by legal category and map to the actual approved return, not the legacy A1–C5 box catalogue. Reconcile invoice registers, Customs payments, tax ledger and bank payments; exclude duplicate transfers, loans and tax remittances without excluding the underlying taxable supply. Ordinary surplus is carried within its window or refunded under the actual election. Annual refund is requested in the final return for the 31 December balance. The per-period refund election takes effect next year, or is made within a month of starting activity; compliance failures/late returns can exclude it for three years. Law arts 67, 70–71, 78; regulation art 19.

Cessation does not make remaining business assets disappear. Disposals, private withdrawals and in-kind liquidation distributions test articles 7–10, the no-prior-deduction exception in article 6(6), accrual and the specific self-supply basis in article 48. Only then determine final tax or refundable credit. Individual closure/refund requires the specified deregistration and assets liquidated/withdrawn; corporate closure requires the actual dissolution/liquidation and asset conditions. Submit the final liquidation balance for a closure refund. Arts 5(3), 6(6), 7–10, 48, 70, 78; regulation art 20.

4. Deadlines and filing

Obtain NRT/census registration and report start, changes and cessation. Ordinary returns follow prior-year aggregate net turnover: below EUR 250,000 file July/January; EUR 250,000 to below EUR 3.6 million file April/July/October/January; EUR 3.6 million or more file monthly. Annualise a short previous year. New businesses ordinarily file quarterly, except the simplified regime's half-year rule. File/pay during the month following the period. At exactly EUR 3.6 million the law's “equal or above” controls over the regulation's inconsistent “above”. No universal quarterly frequency or separately confirmed 31 March annual summary is used. Arts 76, 78; regulation art 31.

Keep issued/received invoice registers, relevant investment records and Customs documents. Separate each rate on mixed invoices, record reverse-charge and corrective invoices, and complete entries by the filing/payment deadline; received invoices are entered in the deduction period. Full invoices are required for business recipients, on request, exports and nonlocated operations. They identify parties/addresses/NRT, sequence/date, supply date where relevant, description, base/rate/tax/total and the legal non-taxation provision. Issue at the transaction, or before the 20th of the following month for a business recipient. Law arts 65, 76; regulation arts 26–30, 37.

For taxable property/equivalent real rights, pay output IGI simultaneously with the public deed, with the notary procedure; a private contract requires settlement/proof before notarisation. A property acquisition's IGI/ITP and possible 0%/3.5% treatment depends on actual statutory conditions, not a blanket residential exemption. Refund processing is three months from the declaration deadline, or filing for the specified cessation case. Arts 59(11), 60 ter, 70(4), 78.

5. Penalties and interest

IGI simple offences have EUR 150–3,000 fines; defraudation has 50%–150% of evaded tax, minimum EUR 150, with statutory graduation. Incomplete returns with tax effect, false returns and invoicing that produces evasion differ from simple documentary failures. Arts 82–83.

General Tax Law articles 23–25 govern interest and surcharges: voluntary late tax-bearing filing is 2% below two months, 5% through twelve months and 10% thereafter, or 15% after the specified formal request, with the separate six-month interest and sanctions coordination. Enforcement surcharges are 2%, 10% or 20% by payment stage; only the last adds interest under that rule. 2026 tax late interest is 4.05% annually on the statutory amount/period, subject to authority-delay exclusions. Determine notice dates and the actual legal route; do not apply a generic late percentage to a nil-credit return. General Tax Law 21/2014 arts 23–25, 125–132; Budget Law 1/2026 art 17.

6. Cross-border points

Spain/France purchases of goods are imports into Andorra, not EU intra-community acquisitions. The EU–Andorra customs union covers HS chapters 25–97; agricultural goods in chapters 1–24 have separate arrangements. Do not turn that into “all agriculture always pays full duty” or assume no IGI because industrial goods have customs-union status. Establish the HS code, origin/customs status and actual DUA. European Commission, Andorra customs arrangements; IGI arts 11–12, 51.

Check exported goods, B2B/B2C service location, actual recipient establishment and reverse charge separately. Foreign digital services to a consumer have the special Andorran location/presumption; the supplier and representative obligations remain relevant. An IRNR withholding obligation can coexist with IGI reverse charge because they tax different matters; use ad-non-resident-income-tax for that separate computation. IGI arts 43–44, 52, 76.

7. Two worked examples that recompute

Ordinary supplies and input credit

Verified invoices show EUR 20,000 taxable general-rate services and EUR 2,020 IGI-inclusive qualifying food sales. Food base is EUR 2,000 and IGI EUR 20; service output is EUR 900. Fully eligible invoiced input IGI is EUR 180, and a valid unexpired prior credit is EUR 100. Pay EUR 640. The food supplier's name alone would not establish classification or the inclusive price.

oaCopy code
name: Andorra ordinary IGI mixed rates and prior credit
inputs:
  service_base: 20000
  service_rate: 0.045
  food_inclusive: 2020
  food_rate: 0.01
  eligible_input: 180
  prior_credit: 100
steps:
  food_base: food_inclusive / (1 + food_rate)
  food_tax: food_inclusive - food_base
  service_tax: service_base * service_rate
  total_output: service_tax + food_tax
  payable: total_output - eligible_input - prior_credit
expected:
  food_base: 2000
  food_tax: 20
  service_tax: 900
  total_output: 920
  payable: 640

Reverse charge plus investment-car restriction

A registered taxable business has EUR 2,250 ordinary output, EUR 5,000 foreign B2B consulting with EUR 225 reverse-charge output/full eligible input, and a properly classified passenger investment car with EUR 1,350 supported acquisition IGI. No evidence rebuts the 50% business-use presumption, so car input is EUR 675, not full recovery or automatic zero. Another EUR 90 input is fully eligible. Total output EUR 2,475 less input EUR 990 gives EUR 1,485 payable. This example is not a dealer's trading-stock car lent to a shareholder.

oaCopy code
name: Andorra reverse charge and investment car presumption
inputs:
  ordinary_output: 2250
  foreign_service_base: 5000
  general_rate: 0.045
  car_input_tax: 1350
  presumed_business_fraction: 0.50
  other_eligible_input: 90
steps:
  reverse_charge_output: foreign_service_base * general_rate
  reverse_charge_input: reverse_charge_output
  eligible_car_input: car_input_tax * presumed_business_fraction
  total_output: ordinary_output + reverse_charge_output
  total_input: reverse_charge_input + eligible_car_input + other_eligible_input
  payable: total_output - total_input
expected:
  reverse_charge_output: 225
  reverse_charge_input: 225
  eligible_car_input: 675
  total_output: 2475
  total_input: 990
  payable: 1485

8. Ask the client first

• What activities, annual/prior-year turnover, start dates, entrepreneur status, NRT and census/refund elections apply?
• What did each party actually supply, where, to which recipient establishment, and on what accrual date?
• Which original invoices, Customs declarations, export evidence, corrective documents and contracts support the amounts?
• Which inputs are current costs versus investment assets or stock, and what business/private use is evidenced?
• What prior credits, refund requests, property deeds, cessation assets and earlier returns need reconciliation?
• Which nonresident suppliers, consumer digital supplies, tax notices or special schemes need separate treatment?

Sources

Not yet confirmed: the old A1–C5 return-box mapping and 31 March annual summary lack current approved-form support; use the actual filing interface. No primary basis supports bank/vendor names as tax classifiers, automatic EU-style annual pro rata, zero recovery for every investment car, unconditional restaurant exclusion, 2.5% optical/parapharmaceutical treatment, or generic exempt-without-credit medical/education/residential rental. Precise traveller-refund documents, international-transport/gold special conditions, particular customs tariff/origin preferences and ITP exemptions require the relevant separate instrument; their specialist procedures are outside this ordinary method. Old EUR 10,000/EUR 500/40%/four-default/EUR 5,000 “red flags” were internal workflow heuristics, not statutory thresholds. Portal consolidations lack official legal status; the law controls over the regulation's inconsistent EUR 3.6 million endpoint.

Contributed by Michael Cutajar.

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Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-28. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call get_skill with slug andorra-igi on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/andorra-igi. If neither is available, confirm every figure against the official source pages cited above before relying on it.