Customs in Andorra, as in all other countries, is responsible for managing goods entering and leaving the territory. This means that people who export must be aware of the taxes, tariffs, procedures and conditions applicable in customs for the transport of goods. Below, we show you how exporting works in Andorra’s customs.
Brief history of the Andorran customs office
Andorra was faced with the need to move closer to the European Union and rethink its economic relations with the integration of Spain (in 1986) in the then EEC (European Economic Community), which is the current European Union. Until 1990, it had bilateral agreements incompatible with the EEC and the GATT (General Agreement on Tariffs and Trade), which led to a revision of its relations with France and Spain.
After four years of negotiations, the customs union agreement was signed in 1990, which established a partial union for industrial products and exemption from import duties for Andorran agricultural products before the EEC. This agreement implied the application of Community legislation on technical and sanitary regulations, as well as increased tax exemptions for travelers returning to Spain or France with products purchased in Andorra.
Over the last 34 years, Andorra has adapted its legislation to European demands, signing monetary, cooperation and tax information exchange agreements. In addition, negotiations for an association agreement with the EU started in 2015 are continuing.
What is the role of customs in Andorra?
The role of customs in Andorra is essential to manage the flow of goods and apply the corresponding taxes and duties. Since this country is not part of the European Union, adapted import and export criteria are used which do not include VAT (as is the case in Spain).
To ship goods, you should take the following information into account:
- The Single Administrative Document (DUA). It is mandatory for imports and exports between Spain and Andorra. It contains crucial information such as the origin of the goods, their customs value and classification. In Spain, the import DUA must include a specific copy for Spanish and Andorran customs.
- The commercial invoice must accompany shipments and must not contain VAT, as this is calculated on the SAD. Five copies are required and include an affidavit with details of the sender, consignee, detailed description of the goods and their value.
- Since 1991, goods from EU member countries are exempt from duties when entering Andorra, but are subject to the General Indirect Tax (IGI).
- The General Indirect Tax (IGI) (equivalent to VAT) has a general tax rate of 4.5% and reduced rates of 1%, with a super-reduced rate of 0% for essential services.
- The transport company charges a fee for its services, which includes the presentation of the SAD and other necessary documents.
These customs procedures ensure efficient management of imports and exports in Andorra, facilitating the flow of goods and guaranteeing compliance with current tax and customs regulations.
Customs in Andorra and Spain: what you need to consider when exporting
To export goods from Andorra to Spain, you must include a tax-free commercial invoice and fill in the Single Administrative Document (DUA), which allows you to calculate the applicable tax and will be processed by Spanish customs.
Shipments to Spain from Andorra are subject to a 21% tax (corresponding to VAT) calculated in the DUA. If an Andorran company provides services to a Spanish company, the Andorran General Indirect Tax (IGI) should not be included in the invoices, as it is a national tax.
The main difference in Andorran and Spanish customs between sending and receiving packages lies in the tax rates. When importing from Andorra to Spain, VAT is settled at a rate of 21%. On the other hand, when sending goods to Andorra, the Andorran IGI is settled through the DUA, at a rate of 4.5%.
You have nothing to worry about, as the agreements between the European Union and Andorra have harmonized customs processes, making customs in Spain and Andorra work in a similar way. This means that shipping to Andorra is cheaper in terms of taxes, with a significant difference of 16.5% compared to receiving shipments from Spain.
What is prohibited to import or export?
It is forbidden to import or export drugs, narcotics, counterfeit products, certain wild animals and endangered plants protected by the Washington Convention, as well as any goods that violate of current regulations.
In summary, Andorra has evolved its relationship with the European Union since the integration of Spain into the then EEC in 1986, culminating in the signing of the customs union agreement in 1990. This agreement made it possible to adapt Andorran legislation to EU requirements, facilitating the efficient management of imports and exports. At MCA Assessors, we have an expert advisory team to facilitate all your export processes at Andorra Customs. In the right hands, bureaucratic processes are not a hindrance, so do not hesitate to consult us.
