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Andorra introduces 4% VAT Jan 2013

Sales Tax replaced by Value Added Tax

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

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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.

Compiling Andorran or other global VAT or GST returns is complex, time consuming and fraught with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.




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