What is the VAT in Andorra? The IGI: standard, reduced and increased rates
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The short answer
Andorra has no VAT: its indirect tax is called the IGI. The standard rate is 4.5 %, the reduced rate 1 %, the super-reduced rate 0 % and the increased rate 9.5 % for banking and financial services.
What is the VAT in Andorra?
There is no VAT in Andorra but the IGI (Impost General Indirecte), which plays a comparable role. The rates are set by Llei 11/2012:
| Rate | Value | Products and services concerned |
|---|---|---|
| Standard | 4.5 %verified on 09/10/2026 | Most goods and services |
| Reduced | 1 %verified on 09/10/2026 | Food products, water, books, press, feminine hygiene |
| Super-reduced | 0 %verified on 09/10/2026 | Health, education, certain residential rents |
| Increased | 9.5 %verified on 09/10/2026 | Banking and financial services |
Why are prices different from France?
With a standard rate of 4.5 %verified on 09/10/2026 against 20% VAT in France, some products are taxed less. But the border is a customs border: the quantities brought back are limited. See allowances.
Must a self-employed person charge the IGI?
People whose annual supplies and services stay below 40,000 €verified on 09/10/2026 are not considered entrepreneurs for IGI purposes, unless they opt in. See IGI and VAT for transactions with France.
Comparing with France
For 1,000 euros excluding tax, the standard IGI of 4.5 %verified on 09/10/2026 gives 45 euros, the French VAT of 20 %verified on 09/10/2026 200 euros. Banking and financial services bear 9.5 %verified on 09/10/2026.
The IGI for a business
Below 40,000 €verified on 09/10/2026 of annual turnover, you are not considered an entrepreneur under the law. Above it, the IGI is in principle neutral: the IGI charged is offset by the IGI borne, subject to conditions of allocation. See IGI and VAT.
For housing
Residential rents fall under the super-reduced rate of 0 %verified on 09/10/2026; acquisitions for rental use may benefit from 3.5 %verified on 09/10/2026 subject to conditions: see IGI and buying to let.
Compare
The IGI or VAT comparator calculates the difference on an amount. On return to France, customs allowances apply: see what quantity to bring back.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
What is the VAT rate in Andorra?
Andorra applies the IGI rather than VAT: the standard rate is 4.5 %.
Which products have a reduced rate?
The reduced rate of 1 % applies in particular to food products, water, books and the press.
Are banking services taxed?
Yes, at the increased rate of 9.5 %.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.