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Andorra clarifies new VAT rates


Andorra clarifies new VAT rates

Andorra introduced a full EU-style VAT regime from the 1 January 2013. This included the new tax at 4.5%, replacing the old sales tax.

Reduced 0% and 1%, plus higher 9.5% VAT rates

It has recently clarified the supplies subject to the higher, 9.5% VAT rate. Most of these are financial services, which are generally exempt in European Union member countries.

The following supplies are subject to VAT of only 1%:

  • Basic foods
  • Newspapers and journals
  • Water

The following supplies are to be charged at 0%:

Public health and medicines

  • Education
  • Housing and rental
  • Cultural and sporting event admission

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.