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Andorra introduces VAT at 4.5% in 2013


Andorra introduces VAT at 4.5% in 2013

Andorra has replaced its Sales Tax regime with a full Value Added Tax system from 1 January 2013.

The Sales Tax was levied at 4% on most consumer spend.  The new VAT will be more wide ranging, with limited exemptions.  For example, insurance cover will be liable to VAT.  A number of financial services will be zero rated (e.g. banking and credit), which means no VAT on sales, and suppliers may recover input VAT suffered on their supplies.

There will also be an opportunity for foreign EU individuals and companies to recover any Andorran VAT incurred.  Non-EU companies will be able to do the same, subject to reciprocity agreements between Andorra and their home state.


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.