Andorra IGI Return Skill (Declaracio de l'IGI) v2.0

Section 1 — Quick reference

Read this whole section before classifying anything.

Field	Value
Country	Principality of Andorra
Tax name	IGI (Impost General Indirecte) — NOT VAT
Standard rate	4.5%
Reduced rate	1% (food, water, books, cultural events)
Intermediate rate	2.5% (transport, para-pharmaceutical, optical products)
Increased rate	9.5% (banking and financial services)
Zero rate	0% (exports, international transport, gold to Andorran financial institutions)
Exempt supplies	Medical, education, insurance, residential rental, social welfare, burial
Return form	Declaracio de l'IGI (quarterly)
Filing portal	https://www.e-govern.ad
Authority	Departament de Tributs i de Fronteres
Currency	EUR (used de facto, formal agreement since 2011)
Filing frequency	Quarterly (standard); annual summary by 31 March
Deadline	Last day of month following quarter end (Q1 by 30 Apr, Q2 by 31 Jul, Q3 by 31 Oct, Q4 by 31 Jan)
Contributor	Open Accountants Skills Registry
Validated by	Pending — requires validation by a licensed Andorran tax practitioner
Validation date	Pending

Key IGI return boxes:

Box	Meaning
A1	Supplies at 4.5% — tax base
A2	Output IGI at 4.5%
A3	Supplies at 1% — tax base
A4	Output IGI at 1%
A5	Supplies at 2.5% — tax base
A6	Output IGI at 2.5%
A7	Supplies at 9.5% — tax base
A8	Output IGI at 9.5%
A9	Zero-rated supplies (exports)
A10	Exempt supplies
A11	Self-assessed IGI on imports of services (reverse charge base)
A12	Output IGI on reverse charge
A13	Total output IGI (A2+A4+A6+A8+A12)
B1	Domestic purchases
B2	Input IGI on domestic purchases
B3	Imports of goods
B4	IGI paid on imports
B5	Fixed asset acquisitions
B6	Input IGI on fixed assets
B7	Input IGI on reverse charge (deductible)
B8	Adjustments
B9	Total input IGI (B2+B4+B6+B7+B8)
C1	IGI payable (if A13 > B9)
C2	IGI credit (if B9 > A13)
C3	Credit from prior period
C5	Net IGI payable

Conservative defaults:

Ambiguity	Default
Unknown rate on a sale	4.5%
Unknown IGI status of a purchase	Not deductible
Unknown counterparty country	Domestic Andorra
Unknown business-use proportion	0% recovery
Unknown blocked-input status	Blocked
Unknown SaaS billing entity	Reverse charge (Box A11/A12/B7)

Red flag thresholds:

Threshold	Value
HIGH single-transaction size	EUR 10,000
HIGH tax-delta on a single conservative default	EUR 500
MEDIUM counterparty concentration	>40% of output OR input
MEDIUM conservative-default count	>4 across the return
LOW absolute net IGI position	EUR 5,000

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Section 2 — Required inputs and refusal catalogue

Required inputs

Minimum viable — bank statement for the quarter in CSV, PDF, or pasted text. Acceptable from any Andorran bank: Andbank, Creand (formerly Credi Andorra), MoraBanc, Vall Banc, or international banks.

Recommended — sales invoices, purchase invoices for claims above EUR 500, the client's NRT (Numero de Registre Tributari).

Ideal — complete invoice register, prior period return, reconciliation of prior credit (C3).

Andorra-specific refusal catalogue

R-AD-1 — Below registration threshold. Trigger: client has turnover below EUR 40,000 and is not voluntarily registered. Message: "Below the mandatory IGI registration threshold. If not voluntarily registered, no IGI return is required."

R-AD-2 — Financial services at 9.5%. Trigger: complex financial services classification needed. Message: "Banking and financial services at 9.5% require specialist analysis to distinguish from exempt financial operations. Flag for reviewer."

R-AD-3 — Partial exemption (proportional deduction). Trigger: mixed taxable and exempt operations. Message: "Proportional deduction required. Annual adjustment needed. Flag for reviewer."

R-AD-4 — Real property transactions. Trigger: sale of real property. Message: "Sale of real property may be subject to IGI or to the Impost sobre les Transmissions Patrimonials. Specialist analysis required."

R-AD-5 — Tourist IGI refund scheme. Trigger: retail sales to tourists claiming refund. Message: "Tourist refund scheme has specific procedures and thresholds. Flag for reviewer."

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Section 3 — Supplier pattern library (the lookup table)

3.1 Andorran banks (fees at 9.5% or exempt)

Pattern	Treatment	Notes
ANDBANK	9.5% for fee-based services; EXCLUDE for interest	Banking fees at increased rate; interest exempt
CREAND, CREDI ANDORRA	Same	Same
MORABANC	Same	Same
VALL BANC	Same	Same
INTERESSI, INTERES	EXCLUDE	Interest, exempt

3.2 Andorran government (exclude)

Pattern	Treatment	Notes
GOVERN D'ANDORRA	EXCLUDE	Government fee, sovereign act
TRIBUTS I FRONTERES	EXCLUDE	Tax payment
DUANA, CUSTOMS	EXCLUDE for duty; check import IGI for Box B4
CASS	EXCLUDE	Social security

3.3 Andorran utilities

Pattern	Treatment	Box	Notes
FEDA, FORCES ELECTRIQUES D'ANDORRA	Domestic 4.5%	B1/B2	Electricity
ANDORRA TELECOM, STA	Domestic 4.5%	B1/B2	Telecoms

3.4 Insurance (exempt)

Pattern	Treatment	Notes
ASSEGURANCES, SEGUROS	EXCLUDE	Insurance, exempt

3.5 Food retail

Pattern	Treatment	Notes
PYRENEENNE, SUPERMERCAT	Domestic 1% for basic food	Reduced rate
RESTAURANT, CAFE	Default BLOCK input IGI	Entertainment blocked under Art. 60

3.6 SaaS — non-resident suppliers (reverse charge)

Pattern	Billing entity	Box	Notes
GOOGLE, MICROSOFT, ADOBE, META	Non-resident	A11/A12/B7	Reverse charge at 4.5%
ZOOM, SLACK, NOTION, ANTHROPIC, OPENAI	Non-resident	A11/A12/B7	Reverse charge at 4.5%
AWS, AMAZON WEB SERVICES	Non-resident	A11/A12/B7	Reverse charge

3.7 Spanish and French suppliers (imports)

Pattern	Treatment	Notes
Spanish entity (ES-)	Import: industrial goods via customs agreement (no duty, IGI at applicable rate)	Agricultural goods: full duty + IGI
French entity (FR-)	Same as Spain	Same treatment at border

3.8 Professional services (Andorra)

Pattern	Treatment	Box	Notes
ADVOCAT, NOTARI, ASSESSOR FISCAL	Domestic 4.5%	B1/B2	Professional services

3.9 Internal transfers and exclusions

Pattern	Treatment	Notes
TRANSFERENCIA PROPIA, TRASPAS	EXCLUDE	Internal movement
DIVIDEND, PRESTEC	EXCLUDE	Out of scope
RETIRADA CAIXER	Ask	Default exclude; ask purpose

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Section 4 — Worked examples

Example 1 — Non-resident service reverse charge (Spanish consulting)

Input line: 05.04.2026 ; CONSULTORIA BARCELONA SL ; DEBIT ; Consulting services ; EUR 5,000

Reasoning: Spanish entity, no Andorran registration. Reverse charge at 4.5%. Box A11 = EUR 5,000, Box A12 = EUR 225, Box B7 = EUR 225. Net zero.

Output:

Date	Counterparty	Gross	Net	IGI	Rate	Box (input)	Box (output)	Default?	Question?	Excluded?
05.04.2026	CONSULTORIA BARCELONA SL	-5,000	-5,000	225	4.5%	B7	A11/A12	N	—	—

Example 2 — Banking service at 9.5%

Input line: 10.04.2026 ; ANDBANK ; DEBIT ; Account management fee Q1 ; -150

Reasoning: Banking fee at the 9.5% increased rate. Input IGI = 150 / 1.095 * 0.095 = 13.01. Deductible if for business use.

Output:

Date	Counterparty	Gross	Net	IGI	Rate	Box	Default?	Question?	Excluded?
10.04.2026	ANDBANK	-150	-136.99	-13.01	9.5%	B1/B2	N	—	—

Example 3 — Food sale at 1% reduced rate

Input line: 12.04.2026 ; CASH SALE ; CREDIT ; Daily bakery sales ; +2,020

Reasoning: Bread and basic food at 1% reduced rate. Net = 2,020 / 1.01 = 2,000. IGI = 20.

Output:

Date	Counterparty	Gross	Net	IGI	Rate	Box	Default?	Question?	Excluded?
12.04.2026	CASH SALE	+2,020	+2,000	20	1%	A3/A4	N	—	—

Example 4 — Import of industrial goods from Spain

Input line: 18.04.2026 ; SPANISH MACHINERY SL ; DEBIT ; Customs entry — CNC machine ; -30,000

Reasoning: Industrial goods (HS 25-97) benefit from EU customs agreement: no duty. IGI at 4.5% on customs value. Import IGI = 30,000 * 0.045 = 1,350. Deductible as input IGI if for taxable activity.

Output:

Date	Counterparty	Gross	Net	IGI	Rate	Box	Default?	Question?	Excluded?
18.04.2026	SPANISH MACHINERY SL	-30,000	-30,000	-1,350	4.5%	B3/B4 or B5/B6	N	Q1	"Confirm if capital good"

Example 5 — Entertainment, blocked

Input line: 22.04.2026 ; RESTAURANT LA BORDA ; DEBIT ; Client dinner ; -209

Reasoning: Entertainment expenses are blocked under Art. 60. No input IGI recovery.

Output:

Date	Counterparty	Gross	Net	IGI	Rate	Box	Default?	Question?	Excluded?
22.04.2026	RESTAURANT LA BORDA	-209	-209	0	—	—	Y	Q2	"Entertainment: blocked"

Example 6 — Export of goods

Input line: 28.04.2026 ; UK CUSTOMER LTD ; CREDIT ; Invoice AD-2026-012 electronics ; +12,000

Reasoning: Export of goods. Zero-rated under Art. 58. Requires customs export declaration. Input IGI fully deductible.

Output:

Date	Counterparty	Gross	Net	IGI	Rate	Box	Default?	Question?	Excluded?
28.04.2026	UK CUSTOMER LTD	+12,000	+12,000	0	0%	A9	N	—	—

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Section 5 — Tier 1 classification rules (compressed)

5.1 Standard rate 4.5% (Art. 57)

Default rate for most goods and services. Sales at Box A1/A2. Purchases at Box B1/B2.

5.2 Reduced rate 1% (Art. 57(2))

Basic food, water, books, cultural events. Sales at Box A3/A4.

5.3 Intermediate rate 2.5% (Art. 57(3))

Passenger transport, para-pharmaceutical, optical products. Sales at Box A5/A6.

5.4 Increased rate 9.5% (Art. 57(4))

Banking and financial services (not exempt). Sales at Box A7/A8. Unusual: most countries exempt financial services.

5.5 Zero rate (Art. 58)

Exports, international transport, gold to Andorran financial institutions. Box A9. Full input IGI recovery.

5.6 Exempt without credit (Art. 50)

Medical, education, insurance, residential rental, social welfare, burial. No output IGI, no input deduction.

5.7 Reverse charge — services from non-residents

Buyer self-assesses IGI at applicable rate. Box A11/A12 (output), Box B7 (input). Net zero for fully taxable.

5.8 Imports of goods

IGI collected at customs. Rate depends on goods classification. Box B3/B4. Deductible.

5.9 Fixed assets

Capital goods with useful life > 12 months. Box B5/B6 for input IGI.

5.10 Blocked input IGI (Art. 60)

No recovery: passenger vehicles for personal use, entertainment, personal consumption, tobacco, jewelry/art/luxury for personal use, without valid invoice.

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Section 6 — Tier 2 catalogue (compressed)

6.1 Vehicle costs

Default: 0% recovery for passenger vehicles. Question: "Is this a personal or business-only vehicle?"

6.2 Entertainment

Default: block. Question: "Entertainment — blocked regardless."

6.3 Financial services classification

Default: 9.5% for banking fees; exempt for interest. Question: "Is this a fee-based service (9.5%) or interest/exempt operation?"

6.4 EU customs agreement classification

Default: flag for borderline products. Question: "Confirm HS code — industrial (chapters 25-97, no duty) or agricultural (chapters 1-24, full duty)?"

6.5 Tourist refund claims

Default: flag for reviewer. Question: "Are exports to tourists documented with refund scheme paperwork?"

6.6 Real property

Default: flag for reviewer. Question: "Is this subject to IGI or the property transfer tax (ITP)?"

6.7 Mixed-use expenses

Default: 0% if proportion unknown. Question: "What business percentage?"

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Section 7 — Excel working paper template (Andorra-specific)

Sheet "Transactions"

Columns A-L per standard layout. Column H accepts valid Andorran IGI box codes.

Sheet "Box Summary"

One row per box (A1 through C5). Values computed via SUMIFS from Transactions sheet.

Sheet "Return Form"

A13 = Total output IGI
B9 = Total input IGI
IF B9 > A13: C2 = B9 - A13 (credit)
ELSE: C1 = A13 - B9 (payable)
C5 = C1 - C3 (net payable)

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Section 8 — Andorra bank statement reading guide

Format conventions. Andorran banks (Andbank, Creand, MoraBanc) typically export in CSV with DD/MM/YYYY dates. EUR currency only.

Language. Descriptions in Catalan (official), Spanish, or French. Treat equivalently.

Internal transfers. "Traspas entre comptes", "transferencia propia". Always exclude.

Customs entries. Goods arrive via Spanish (southern) or French (northern) border only. Look for "duana" entries.

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Section 9 — Onboarding fallback (only when inference fails)

9.1 Entity type

Inference: SL, SA in name = company. Individual name = sole trader. Fallback: "Entity type?"

9.2 IGI registration

Inference: if asking for IGI return, registered. Fallback: "Are you registered for IGI (above EUR 40,000 turnover)?"

9.3 NRT

Fallback: "What is your NRT?"

9.4 Period

Inference: from statement dates. Fallback: "Which quarter?"

9.5 Industry

Inference: counterparty mix. Fallback: "What does the business do?"

9.6 Prior credit

Always ask: "Do you have IGI credit from last quarter? (Box C3)"

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Section 10 — Reference material

Sources

1. Llei 11/2012, del 21 de juny, de l'Impost General Indirecte — Articles 4, 50, 57, 58, 59, 60, 78, 85
2. Reglament de l'IGI
3. Llei 21/2014 and Llei 3/2019 (amendments)
4. EU Customs Agreement Decision 90/680/EEC

Known gaps

1. Tourist IGI refund scheme procedures and current thresholds need practitioner verification.
2. Financial services IGI vs. exempt boundary requires specialist analysis.
3. EU customs agreement product classification for borderline goods.

Change log

• v2.0 (April 2026): Full rewrite to 10-section architecture.
• v1.0: Initial skill.

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Disclaimer

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