Andorra VAT / Sales Tax

Detailed vat / sales tax rates and rules for Andorra in 2026.

VAT / Sales TaxEUR

Andorra applies a general indirect tax (IGI - Impost General Indirecte) at 4.5%, far lower than EU VAT rates. Reduced rates of 2.5% and 1% apply to essential goods and services. This low consumption tax contributes to Andorra's attractive cost of living.

Standard Rate

4.5%

Registration Threshold

€40,000 in annual turnover

Reduced Rates

2.5% — Food, water, books, newspapers1% — Healthcare, education, cultural activities, rental of residential property0% — Financial services, insurance, dental and medical services

How Andorra VAT / Sales Tax compares

Andorra’s standard VAT / sales tax rate of 4.5% is the 178th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Europe’s regional average of 19.9%.