IGI and VAT in Andorra: rates, France-Andorra invoicing
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The short answer
The IGI is Andorra's indirect tax on goods and services, comparable to VAT but with lower rates. As Andorra is outside the European Union, transactions with France follow specific customs and VAT rules.
The values
| Item | Value |
|---|---|
| General rate | 4.5 %verified on 09/10/2026 |
| Reduced rate | 1 %verified on 09/10/2026 |
| Registration threshold | 40,000 €verified on 09/10/2026 |
A country outside the EU
Goods crossing the border are subject to customs controls. Purchases made in Andorra are not taxed as they are in France, but limits apply on what you may bring into France. For a business selling in France, French VAT and import formalities must be handled with a specialist.
For a service business
Services provided to French customers are in principle taxed according to place-of-supply rules. An incorrectly issued invoice can lead to a tax reassessment. Have your invoicing set-up validated.
The IGI for a business
The IGI is in principle neutral for an entrepreneur or professional: the IGI charged to customers is offset by the IGI paid on purchases, through a periodic return. The conditions for deduction are precise:
| Point | Rule |
|---|---|
| Allocation | The good or service must be allocated to the taxable activity |
| Capital goods | Deduction proportional to the partial allocation |
| Vehicles | No deduction if they are not allocated to the activity, half if they are partly allocated, more than half only with proof |
| Pro rata | No pro rata rule, as there are no internal exempt transactions |
What does not give rise to IGI
The law excludes in particular transfers of shareholdings in companies, financial transaction services remunerating the transfer of equity to third parties, and the insurers' own activities. Letting property, by contrast, is an economic activity for IGI purposes.
The rates
The general rate is 4.5 %verified on 09/10/2026, the reduced rate is 1 %verified on 09/10/2026, the super-reduced rate is 0 %verified on 09/10/2026 and the increased rate on banking and financial services is 9.5 %verified on 09/10/2026. In France, the standard VAT rate is 20 %verified on 09/10/2026: see the IGI and VAT comparison tool.
The registration threshold
Below 40,000 €verified on 09/10/2026 of annual turnover, you are not considered an entrepreneur within the meaning of the law. Above it, registration and returns are required.
For property rental
The IGI regime on rents and on the acquisition of a property intended for rental is detailed in IGI and buying to let.
Work out your own case
Free simulators, built on the official values of this page.
- Andorra IRPF simulator (employment, rental and savings income)Estimate your income tax with the tax-free minimum, the bonus relief and family allowances.Open
- Andorran IGI and French VAT: price comparisonHow much does the same purchase cost in Andorra and in France?Open
- Leaving France for Andorra: are you still a French tax resident?The three criteria for French tax residence, in a few questions.Open
Frequently asked questions
What is the general IGI rate?
It is shown, with its date, in the table on this page. It is significantly lower than French VAT rates.
Is the IGI recoverable like VAT?
Businesses subject to the tax can deduct the IGI they have paid, under the conditions set by the regulations.
How does invoicing a French customer from Andorra work?
Services and sales of goods are not treated in the same way. You need to analyse the place of taxation and, for goods, the customs formalities.
Is there a registration threshold?
Yes, a turnover threshold exists for certain businesses. The current value is in the table.
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.