Director of Augé Grup’s Tax Department Marc Urgell Díaz answers:
Occasionally, entrepreneurs or professionals who are not resident in Andorra carry out operations in which they bear IGI in Andorra. IGI is an indirect tax analogous to VAT, and as such, its objective is to tax the final consumption, allowing the companies to deduct the IGI payed in Andorra.
Article 61.1 of the LIGI (i.e Law on IGI) states that only taxpayers liable for the tax can deduct the tax contributions paid in relation to the development of their economic activities. However, Non-Residents, insofar as they comply with the requirements set forth at Art.73 of the LIGI and Art.22 of the RIGI (i.e Regulation on IGI), may recover the IGI supported despite being Non- Established companies. The requirements are as follows:
1. No delivery of goods or services in Andorra
2. Appointment, prior to the request, of a tax representative resident in Andorra to act as an interlocutor with the tax authorities.
3. Existence of reciprocity with Andorra for the purposes of indirect taxation in the State where the foreign company is established.
4. Request for a return of more than € 220.
5. Annually or quarterly period immediately preceding the request.
The Regulation establishes the documentation that must be attached to the request, and if it is submitted correctly, the return is made within 3 months following the request.