---
title: "E-commerce in Andorra: status, IGI, EU VAT and SaaS"
url: https://andorrefiscal.fr/en/business/online-business
description: "E-commerce, SaaS or consulting from Andorra: residency status, business licence, IGI, VAT for EU clients, the IOSS scheme, software."
updated: 2026-10-11
language: en
publisher: Andorre Fiscal (https://andorrefiscal.fr)
---

# E-commerce, SaaS, consulting: running an online business from Andorra

> Markdown version of the page https://andorrefiscal.fr/en/business/online-business (Andorre Fiscal), up to date as of 11 October 2026. To cite this page, use its address: https://andorrefiscal.fr/en/business/online-business

Selling online, publishing software or advising clients remotely from Andorra involves three decisions: a compatible residence permit, a structure, most often an Andorran company, and the correct application of IGI and European VAT. The main risk often lies in France, if the activity or its management remains there.

By [the Andorre Fiscal editorial team](https://andorrefiscal.fr/en/about#redaction) · Verified on 11 October 2026 · [22 official sources](https://andorrefiscal.fr/en/business/online-business#sources)

- **85%** of services used outside Andorra for the international professional status
- **4.5%** IGI on services located in Andorra
- **80%** reduction in the tax base for income from protected software, subject to authorisation
- **€150** per order: ceiling of the IOSS scheme for selling goods in the EU

## Key points

- An online business carried on from Andorra requires a residence permit that authorises it: self-employed residency through a company, professional with international reach or, in specific cases, remote work. Passive residency rules it out.
- Any commercial or service activity, even online, requires a business licence authorised by the comú and entered in the Register of Commerce.
- A service provided to a foreign business is in principle not subject to IGI; provided to a private individual, it is, except for certain services, including electronic services and consulting, supplied to non-residents.
- In the European Union, your business clients account for VAT under the reverse charge. For a private individual, the VAT of their country is always due on electronic services; for other services, the place of supply is in principle the supplier’s country, but France taxes those that are effectively used there.
- The intangible assets regime reduces the tax base of income from protected software by 80%, under strict conditions and subject to prior authorisation.

## Which residency status for an e-commerce or SaaS business?

For the immigration law, working means carrying on any gainful activity, employed or not, full-time or part-time, other than managing your own assets (Llei 9/2012, art. 22). The fact that all your clients are abroad changes nothing: you need a permit that authorises the activity. Three statuses are suitable.

**Andorran company — Self-employed residency**

- More than 34% of the capital and effective management
- €50,000 paid to the AFA, non-refundable
- At least 183 days a year to renew
- Clients in Andorra as well as abroad

**Foreign clients — International professional**

- At least 85% of services used outside Andorra
- One employee at most
- €47,500 deposit with the AFA, refundable
- At least 90 days a year

**Remote work — Activity without a fixed location**

- Favourable decision from the Ministry of the Economy
- Services to non-residents, or work for a foreign company of which you are a shareholder or director
- No other gainful activity in Andorra
- At least 90 days a year

The international professional and the holder of a remote work authorisation, the [digital nomad status](https://andorrefiscal.fr/en/residency/digital-nomad), may only carry on the activity provided for by law: any other gainful activity requires a different authorisation (art. 23 and 98). The international professional status is also subject to a quota: Decree 74/2026 of 11 March 2026 reserves for it 10 of the 200 authorisations for residence without work; if this share is used up, the authorisation remains possible as long as the overall quota has not been reached. [Passive residency](https://andorrefiscal.fr/en/residency/passive-residency) rules out any activity, even remotely. Compare the [types of residency in Andorra](https://andorrefiscal.fr/en/residency/residency-types).

## Online shop or SaaS: do you need a company and a business licence?

For self-employed residency, yes: the Andorran company is a legal requirement. For the other statuses, the law does not impose one, but it sets a framework: any person, natural or legal, who carries on a commercial, industrial or service activity must be authorised by the [comú](https://andorrefiscal.fr/en/glossary#comu) of the parish, which passes the application on to the Govern’s Register of Commerce and Industry. An online shop or a consulting business is no exception: the business licence card is a condition of the right to invoice.

A foreign-owned company must also demonstrate an effective activity within 18 months: registered business licence, accounts filed, at least 75% of the forecasts announced and an [account with a bank established in Andorra](https://andorrefiscal.fr/en/business/business-bank-account). These [obligations of a foreign-owned company](https://andorrefiscal.fr/en/business/foreign-investment#activite-effective) come on top of the steps to [set up a company in Andorra](https://andorrefiscal.fr/en/business/set-up-a-company).

## IGI: when are your online services taxed in Andorra?

Llei 11/2012 on [IGI](https://andorrefiscal.fr/en/glossary#igi) determines the place of supply of services according to the client (art. 43 and 44). Above €40,000 of annual turnover, you collect IGI of 4.5% only on services located in Andorra.

**Place of supply of services for IGI**

| Your client | Service located in Andorra? | Text |
| --- | --- | --- |
| Business or professional established in Andorra | **Yes**: IGI of 4.5% | art. 43.1 a |
| Business or professional established abroad | **No**, except under special rules (immovable property located in Andorra, transport, events) | art. 43.1 a and 44 |
| Private individual residing in Andorra | **Yes**: IGI of 4.5% | art. 43.1 b and 44 |
| Private individual residing outside Andorra: electronic services, consulting, advertising, data processing, licences, translations | **No**, unless effectively used in Andorra | art. 43.2 |
| Private individual residing outside Andorra: other services | **Yes** | art. 43.1 b |

Electronic services include in particular website hosting, the supply and updating of software, remote maintenance, the provision of databases and distance learning. A mere exchange of e-mails is not enough to make a service an electronic service (art. 43.3).

For goods, a sale shipped outside Andorra by the seller is exempt from IGI as an export (art. 14). The rates are detailed in our guide to [VAT in Andorra (IGI)](https://andorrefiscal.fr/en/tax/andorra-vat-igi).

## EU VAT: business clients, private individuals and sales of goods

Andorra is not part of the European Union: selling to European customers means selling from a third country. The VAT due depends on the customer and on what you sell.

- **business clients**: the client business generally pays the VAT of its own country under the reverse charge; you invoice without VAT;
- **private individuals, electronic, telecommunications or broadcasting services**: the VAT of the customer’s country is always due, whatever the supplier’s country. An electronic service is supplied over the internet, in a largely automated way, with minimal human intervention: downloaded or online software, website hosting, digital content. Exchanging e-mails with the client is not enough to make a service an electronic service;
- **private individuals, other services** (consulting, coaching, intellectual services): the general rule places the service where the supplier is established, and therefore outside the Union, except for rules specific to certain services (immovable property, passenger transport, events, restaurant services, hiring of means of transport). France adds the exception in Article 259 C, presented below;
- **private individuals, goods**: import VAT is due; for consignments of €150 or less per order, the IOSS allows it to be collected at the time of sale, with a monthly return. A marketplace may, in certain cases, become liable for it in your place.

When the VAT of a Member State is due on a service supplied to a private individual, a business established outside the Union can register in a single Member State, under the “non-Union One-Stop Shop”, and file a quarterly return there for all its supplies to European consumers.

> **Caution: Private individuals established in France: the effective use rule**
>
> A service supplied by a supplier established outside the Union to a private individual established in the Union is taxable in France when it is effectively used or exploited there (French General Tax Code, art. 259 C, 1°). Excluded are services subject to their own rule, including electronic, telecommunications and broadcasting services (art. 259 D) and most of those in Article 259 A. Thus, consulting provided from Andorra to a private individual who uses it in France bears French VAT. For a client established in another Member State, have the rule of that country checked.
>
> According to the BOFiP, these articles of the CGI are to be transferred to the Code of Taxes on Goods and Services on 1 January 2027.

> **Example: A subscription software publisher**
>
> An Andorran SL sells an online subscription to French businesses and to private individuals residing in France. For the businesses: neither IGI nor VAT invoiced, the client accounts for French VAT under the reverse charge. For the private individuals: no IGI, since this is an electronic service supplied to non-residents, but French VAT is due, whatever the supplier’s country (art. 259 D), declared via the non-Union One-Stop Shop. A client residing in Andorra would, for their part, pay IGI of 4.5%.

For invoicing your French clients, businesses or private individuals, see our guide to [invoicing between France and Andorra](https://andorrefiscal.fr/en/business/vat-france-andorra).

> **Good to know: The customs union does not settle VAT**
>
> The [customs union](https://andorrefiscal.fr/en/glossary#union-douaniere) between Andorra and the Union covers industrial products. It does not make Andorra part of the Union’s VAT territory: on entry into the Union, import VAT remains due.

## Platforms and marketplaces: who is liable?

It all depends on who pays you: a platform, private individuals or, for goods, a European marketplace.

**Paid by a foreign platform — Advertising network, video, app store**

- Generally pays for a service provided to that business
- Service not located in Andorra: **no IGI**

**Paid by private individuals — Subscriptions, online courses**

- Rules applicable to private individuals
- No IGI if the client resides outside Andorra and the service is on the list in Article 43.2
- **VAT of their country** for an electronic service to a client in the Union; in France, also for another service that is effectively used there

**Sale of goods — European marketplace**

- May be treated as the seller for VAT purposes
- In particular if the seller is established outside the Union, or for imported goods of €150 or less sold through it

The classification of each flow depends on the contracts: have it checked. The status, tax and pathway of a [YouTuber or content creator in Andorra](https://andorrefiscal.fr/en/profiles/content-creator) are covered in a separate guide.

## Selling physical goods: customs, import VAT and dropshipping

A parcel shipped from Andorra to a customer in the Union enters it as an import: the VAT of the country of arrival is due and a customs declaration is required. On the Andorran side, the sale shipped outside Andorra by the seller is exempt from IGI (Llei 11/2012, art. 14).

- **Customs union**: since 1990, it has covered industrial products, chapters 25 to 97 of the Harmonised System; products of chapters 1 to 24 originating in Andorra are exempt from import duties in the Union;
- **IOSS one-stop shop**: for consignments of €150 or less, it allows the customer’s VAT to be collected at the time of sale, with a monthly return; a business established outside the Union must appoint an intermediary to use it;
- **€3 duty**: from 1 July 2026 to 1 July 2028, the Union levies a temporary customs duty of €3 per item on consignments of €150 or less sold at a distance, whatever the VAT scheme. According to the Commission, a customs preference, such as that of the customs union, may be declared, but not if the VAT is collected through the IOSS;
- **Marketplaces**: for imported goods of €150 or less sold through them, they may be treated as the seller for VAT purposes.

### Dropshipping: who sells, and from where?

In dropshipping, the supplier ships directly to the customer, often from a third country, without the goods passing through Andorra. The sale is then not located there for IGI purposes, since the transport does not begin on Andorran territory (Llei 11/2012, art. 42). To a customer in the Union, the consignment remains an import, with the same rules: VAT of the country of arrival, IOSS possible up to €150 and a duty of €3 per item. Your residency status and your business licence must, for their part, cover this activity.

## Online shop website: mandatory information, personal data and cookies

A shop operated from Andorra is subject to Andorran law on electronic commerce and data protection. Llei 20/2014 on electronic contracting requires the website to display, in a visible, permanent, clear and free manner (art. 6):

- the identification of the operator: name or company name, address and contact details;
- its registration and tax identification details;
- the authorisations required for the activity and, for a regulated profession, its professional body;
- information on prices and the information required by consumer law and data protection.

Commercial e-mails in principle require the prior consent of the recipient, and cookies require clear information enabling the recipient to consent to them (art. 19 and 20). Llei 29/2021, the qualified law on the protection of personal data, whose application is supervised by the Andorran Data Protection Agency (APDA), requires a legal basis for each processing operation, such as consent or the performance of a contract, and full information for the customer at the time of collection (art. 6, 16 and 46). The European Commission has recognised Andorra as providing an adequate level of protection since its Decision 2010/625/EU of 19 October 2010: data can come from the Union without additional safeguards.

## Software and SaaS: the intangible assets regime

Andorran [corporate income tax](https://andorrefiscal.fr/en/tax/andorra-corporate-tax) is 10%. A special regime reduces by **80%** the tax base corresponding to income from the granting of rights of use or licences, or from the transfer, of patents, utility models and **software protected by copyright** (Llei 95/2010, art. 23). When all of this income qualifies for the reduction, its taxation falls to about 2% (indicative calculation: 10% applied to 20% of the base). The conditions are demanding:

- the reduction is proportionate to the **development expenditure** incurred by the company itself (the OECD’s so-called “nexus” approach): outsourcing abroad and acquiring the asset reduce the eligible share;
- the company exploits the asset in its own name and keeps separate accounts for each asset;
- it has resources in Andorra and carries on exploitation, management or promotion activities there;
- it makes a **prior application** to the Ministry of Finance, which decides within six months; if there is no response, the application may be considered rejected. The regime applies from the financial year of the application.

> **Caution: Is a SaaS subscription a “licence”?**
>
> The law covers income from licences and transfers of protected software. Whether a subscription to an online service falls into this category depends on the contract and on the ministry’s assessment: have it validated in the authorisation application, with a professional.

## The French risk: permanent establishment and effective management

An online business has no obvious address; the tax authorities therefore look for where it is really managed and carried on. The [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty) provides three reference points:

- a company resident in both States is deemed to be resident in the State where its **place of effective management** is situated (art. 4);
- its profits are taxable in France if it operates there through a **permanent establishment**: place of management, branch, office, or a person who habitually concludes contracts in its name there (art. 5 and 7);
- the benefits of the treaty may be denied to a transaction one of whose principal purposes is to obtain them (art. 25).

In practice, a director who continues to live and work in France, or a team that signs contracts from France, weakens the company’s Andorran position. The director remains a French tax resident if they meet just one of the criteria of Article 4 B of the French General Tax Code. If you are moving an existing business, follow the steps to [relocate your company to Andorra](https://andorrefiscal.fr/en/business/moving-your-business-from-france).

Finally, French residents who hold an Andorran company may be affected by the rules targeting entities subject to a “privileged tax regime” (Articles 209 B and 238 A): this classification, given the 10% corporate income tax, is an analysis to be validated by a tax adviser, not an established fact.

> **Common misconception**
>
> “An Andorran company that invoices over the internet has no connection with France.”
>
> **In fact.** What counts is neither the address of the website nor that of the registered office, but the place where the activity is managed and carried on. See what [domiciling your company in Andorra](https://andorrefiscal.fr/en/business/economic-substance) involves.

## Frequently asked questions

### Does a content creator paid by foreign platforms charge IGI?

As a general rule no, when the platform paying them is a business established outside Andorra: the service is not located in Andorra for IGI purposes. Sums paid directly by private individuals follow other rules, depending on the type of service: have each source of income analysed.

### Does the digital nomad status allow you to have Andorran clients?

No. This authorisation only covers work for an employer established abroad, services provided to non-resident persons or entities, or activity for a foreign company of which you are a shareholder or director. Any other gainful activity in Andorra requires a different immigration authorisation.

[Read: Digital nomad](https://andorrefiscal.fr/en/residency/digital-nomad)

### Does an online shop need a business licence in Andorra?

Yes. Any person, natural or legal, who carries on a commercial or service activity must obtain the authorisation of the comú of the parish, entered in the Govern’s Register of Commerce and Industry. The business licence card allows you to start the activity and to invoice.

### Do you need premises for an online shop in Andorra?

Not necessarily premises open to the public. The business licence is registered at an address in Andorra: according to the Govern, depending on the activity and the procedure for opening it, simplified or ordinary, it can be registered in a rented office, a coworking space or at the registered office. An address does not, however, prove a genuine activity, which is then required of a foreign-owned company.

### Must an Andorran e-commerce or SaaS business charge VAT to its private customers in France?

It depends on what it sells. For an electronic, telecommunications or broadcasting service, such as a subscription to online software or downloaded content, yes: French VAT is due as soon as the customer is established or resides in France, whatever the supplier’s country (CGI, art. 259 D). For other services, the place of supply is in principle the supplier’s country, but France taxes them when a supplier established outside the Union supplies them to a private individual who effectively uses them in France (art. 259 C). In both cases, the VAT is declared via the non-Union One-Stop Shop. For goods shipped, import VAT is due, collected via the IOSS for consignments of €150 or less.

[Read: France–Andorra VAT](https://andorrefiscal.fr/en/business/vat-france-andorra)

### Does the 80% software regime apply automatically?

No. You must apply for it to the Ministry of Finance, describing the activity, the assets concerned and the resources the company has in Andorra. The ministry has six months to respond; if there is no response, the application may be considered rejected.

### Can you sell goods to European customers from Andorra?

Yes, but each consignment enters the Union as an import: import VAT is due. For consignments of €150 or less per order, the IOSS allows you to charge it to the customer at the time of purchase. Since 1 July 2026, these small consignments have also borne a temporary customs duty of €3 per item, unless a customs preference is declared outside the IOSS. The sale shipped out of Andorra is, for its part, exempt from IGI.

### Can you do dropshipping from Andorra?

Yes, if your residency status and your business licence cover the activity. As the goods do not pass through Andorra, the sale is not located there for IGI purposes, since the transport does not begin on its territory. To a customer in the Union, the consignment remains an import: VAT of the country of arrival, IOSS possible up to €150 and a temporary customs duty of €3 per item on these small consignments since 1 July 2026.

## Sources

1. [Llei 9/2012, qualified law on immigration, consolidated version](https://www.portaljuridicandorra.ad/L2012009) — Definition of work, remote work, self-employed residency, international professional (art. 22, 23, 38 ter, 98).
2. [Llei 11/2012 on IGI, consolidated version](https://www.portaljuridicandorra.ad/L2012011) — Threshold of €40,000, exports, place of supply of services (art. 5, 14, 43 and 44).
3. [Llei 95/2010 on corporate income tax, consolidated version](https://www.portaljuridicandorra.ad/L2010095) — Rate of 10%, intangible assets regime (art. 23 and 41).
4. [Your Europe (European Union): VAT One-Stop Shop](https://europa.eu/youreurope/business/finance-and-tax/vat/one-stop-shop/index_en.htm) — Non-Union scheme for services, IOSS up to €150 per order.
5. [Your Europe (European Union): cross-border VAT](https://europa.eu/youreurope/business/finance-and-tax/vat/cross-border-vat/index_en.htm) — Reverse charge by the business customer, import VAT on goods.
6. [France–Andorra tax treaty (Decree No. 2015-878)](https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000030907404) — Place of effective management, permanent establishment, anti-abuse clause (art. 4, 5, 7 and 25).
7. [Govern: administrative authorisations for businesses (Punt Empresa)](https://www.govern.ad/ca/tematiques/empresa-i-emprenedoria/creacio-i-modificacio-d-empreses/punt-empresa/autoritzacions-administratives) — Authorisation from the comú and the Register of Commerce for any activity.
8. [French General Tax Code, Article 4 B (Légifrance)](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000051202565) — Criteria for tax domicile in France.
9. [French General Tax Code, Article 259 C (Légifrance)](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000048838549) — Services supplied by a supplier established outside the EU, taxable in France if they are effectively used there (version in force until 1 January 2027).
10. [French General Tax Code, Article 259 D (Légifrance)](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000042886735) — Electronic, telecommunications and broadcasting services: taxed in France for a non-taxable customer established in France.
11. [BOFiP, BOI-TVA-CHAMP-20-50-40-10: effective use in France](https://bofip.impots.gouv.fr/bofip/11963-PGP.html) — Services covered and excluded by point 1° of Article 259 C (§ 240 to 280).
12. [BOFiP, BOI-TVA-CHAMP-20-50-40-20: electronic services](https://bofip.impots.gouv.fr/bofip/11964-PGP.html) — Four criteria for an electronic service, taxation in the consumer’s State whatever the supplier’s country.
13. [BOFiP, news item of 7 October 2026: recodification of VAT](https://bofip.impots.gouv.fr/bofip/15140-PGP.html/ACTU-2026-00126) — Transfer of the VAT rules to the Code of Taxes on Goods and Services postponed to 1 January 2027.
14. [Decree 74/2026 of 11 March 2026 (residence without work), BOPA No. 26 of 2026](https://bopadocuments.blob.core.windows.net/bopa-documents/038026/html/GD_2026_03_12_12_05_05.html) — 10 of the 200 authorisations for professionals with international reach.
15. [Govern: setting up a business in Andorra (Punt Empresa)](https://www.govern.ad/ca/tematiques/empresa-i-emprenedoria/creacio-i-modificacio-d-empreses/punt-empresa/creacio-d-una-empresa-a-andorra) — Business licence registered in a rented office, a coworking space or at the registered office, depending on the procedure.
16. [European Commission: customs union with Andorra](https://taxation-customs.ec.europa.eu/andorra-customs-unions-and-preferential-arrangements_en) — Products of chapters 25 to 97 of the Harmonised System; chapters 1 to 24 of Andorran origin exempted.
17. [European Commission: €3 duty on low-value consignments (Access2Markets)](https://trade.ec.europa.eu/access-to-markets/en/news/eu-applies-eu3-customs-duty-item-low-value-e-commerce-consignments) — Regulation (EU) 2026/382: €3 per item from 1 July 2026 to 1 July 2028, whatever the VAT scheme.
18. [European Commission: guidance on the €3 duty (version of 5 October 2026)](https://taxation-customs.ec.europa.eu/document/download/053e5b4e-f0be-4f20-9a23-3e3b659a6676_en?filename=Customs%20Guidance%20on%20EUR%203%20customs%20duty.pdf) — Customs preference may be declared as long as the IOSS is not used (point 5.4).
19. [European Commission: One-Stop Shop (OSS) portal](https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_en) — Intermediary compulsory for a business established outside the EU that uses the IOSS.
20. [Llei 20/2014 on electronic contracting, consolidated version](https://www.portaljuridicandorra.ad/L2014020) — Information to be displayed, commercial e-mails, cookies (art. 6, 19 and 20).
21. [Llei 29/2021, qualified law on the protection of personal data, consolidated version](https://www.portaljuridicandorra.ad/L2021029) — Legal bases, information to data subjects, APDA (art. 6, 16 and 46).
22. [European Commission: adequacy decisions](https://commission.europa.eu/law/law-topic/data-protection/international-dimension-data-protection/adequacy-decisions_en) — Andorra recognised as providing adequate protection (Decision 2010/625/EU of 19 October 2010).

Consolidated texts on the Portal jurídic d’Andorra have no official value: only the version published in the BOPA is authentic. [How we verify](https://andorrefiscal.fr/en/methodology).

**General information, not advice.** This guide sets out the rules in force on 11 October 2026, based on official texts. It is no substitute for a professional review of your situation (lawyer, tax adviser, gestoria). Spotted an error or a change? [Write to us](https://andorrefiscal.fr/en/contact).

## Further reading

- [France–Andorra VAT](https://andorrefiscal.fr/en/business/vat-france-andorra): Invoicing a French or Andorran client
- [International professional](https://andorrefiscal.fr/en/residency/international-professional): Freelance, clients abroad
- [YouTuber, content creator](https://andorrefiscal.fr/en/profiles/content-creator): Video makers, streamers, influencers
- [Freelancer, consultant](https://andorrefiscal.fr/en/profiles/freelancer): Clients in France or elsewhere
- [VAT in Andorra (IGI)](https://andorrefiscal.fr/en/tax/andorra-vat-igi): Standard rate and special rates
- [Basing your company in Andorra](https://andorrefiscal.fr/en/business/economic-substance): The economic substance required