Andorra introduced Value Added Tax liabilities on the providers of digital or electronic services from 1 January 2013. The current VAT rate in Andorra is 4.5%
The Pyrenees state, locked between France and Spain, followed the European Union scheduled model, imposing VAT on the country of residence rather than from the country of the provider. The EU imposed its pan-EU customer residency rules from 1 January 2015.
There is a VAT registration threshold of €40,000 per annum. Business-to-business transactions are subject to the reverse charge and therefore no VAT is charged by the provider.
Check VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
Europe VAT on digital services
|Country (click for details)||Rate||Date||Threshold||Comments|
|EU 27 member states||17% to 27%||Jan 2015||€10k EU residents; Nil for non-EU|
|Bosnia Herzegovina||17%||Jan 2023||BAM 50.000|
|Iceland||24%||Nov 2011||ISK 2 million|
|Norway||25%||Jul 2011||NOK 50,000|
|Russia||16.67%||Jan 2017||Nil||B2C & B2B|
|Switzerland||7.7%||Jan 2010||CHF 100,000 on global income|
|Ukraine||20%||Jan 2022||UAH 1m|