Andorra introduced a full EU-style VAT regime from the 1 January 2013. This included the new tax at 4.5%, replacing the old sales tax.
Reduced 0% and 1%, plus higher 9.5% VAT rates
It has recently clarified the supplies subject to the higher, 9.5% VAT rate. Most of these are financial services, which are generally exempt in European Union member countries.
The following supplies are subject to VAT of only 1%:
- Basic foods
- Newspapers and journals
The following supplies are to be charged at 0%:
Public health and medicines
- Housing and rental
- Cultural and sporting event admission