What do you need to know to have an ecommerce in Andorra? What are the advantages?

Currently, the online market is not a fashion but a reality, every day it is more common for millions of people to buy products online without leaving home.

Can you imagine the business opportunities that this means? For this reason, if you have an online company that you want to start or simply you already have a physical business, but without Internet presence, you should know what ecommerce is, what possibilities it offers and what is the best taxation in Andorra.

If you are interested in knowing what it is all about, do not miss this article.

What is ecommerce?

The concept of ecommerce is used to simply define the Internet as the marketplace for the sale and purchase of any type of product or service. In other words, ecommerce is the exchange of goods and/or services over the Internet. This term can be used to refer to the universe of online stores created by entrepreneurs.

However, what are the advantages of this type of trade?

Ecommerce offers the possibility of operating in a non-physical market such as the Internet. The main benefits that can be quickly identified are the following:

  • Business open 24 hours a day without the need to open and close your business.
  • You can increase your sales thanks to the worldwide market offered by the Internet.
  • Customers can be from anywhere in the world.
  • By knowing more about your customers you will be able to offer them exactly what they need at any given moment and classify what their needs are.
  • The online market also reduces costs.

In short, ecommerce gives you the possibility to expand the market of your business, and increase your turnover and profits from a computer or any other device.

For this reason, if you are thinking of creating an ecommerce for your business, we recommend that you install them in Andorra, as this country has several advantages over Spain.

The ecommerse is an activity that recently is giving much to talk about in Andorra and that country has put the spotlight on those who are engaged in this activity. But why has this happened? Easy, because you only need a computer to work and you can do it perfectly from Andorra.

In addition, the country’s attractive tax framework also plays a role, which means that it has much lower taxes than other countries, such as Spain, for example.

But why should you set up your ecommerce in Andorra and not in Spain? The reasons are the following:

  • Andorra is a great opportunity for those companies that are well structured, as it is a country with a special motivation for international online commerce business. This is due to its tax advantages and a secure legal framework, with multiple operational advantages for companies, difficult to beat compared to Spain: the corporate tax rate is 10% in Andorra and 25% in Spain; the VAT regime has its maximum rate at 4.5% in the Principality and 21% in Spain.
  • Ecommerce hub in Andorra. As this country attracts so many companies in the sector, it is very common to find companies that are dedicated to the same activity as you, which means that you can support each other to achieve your goals.
  • There are no limitations for Paypal. This platform is not yet 100% operational in the country. But this is no limitation for ecommerce based in Andorra because there are other options that currently work perfectly in the Principality, such as payment by credit card or cash on delivery.
  • Nowadays, Andorra has fiber optics throughout its national territory, something that can be very interesting for an ecommerce, since it will not have navigation problems. On the contrary, the internet connection will be much faster and smoother.
  • The fact that Andorra attracts so many entrepreneurs and business people means that you will find people in the country who are in the same business as you. Either they have other businesses that could help yours or vice versa. Andorra, unlike Spain, acts as a huge co-working center. Therefore, it is much easier to find someone interested in your business in Andorra than in Spain.
  • In addition, this country offers many opportunities to companies that want to start from scratch to develop their ecommerce without problems, which may seem a limitation due to the fact of residing in Andorra.

However, one aspect that you have to take into account if you are going to install an ecommerce in Andorra is the special regime for online sales that they have.

You must take into consideration that Andorra is not part of the European Union, so the new EU regime that facilitates distance sales of trade to individuals by considering the entire European territory as a single country for VAT purposes, does not apply; and under any concept, the entry and exit of products from Andorra must go through a customs process. For this reason, sales from Andorra are not considered an intra-community operation, but a contribution for the rest of the countries of the European Union.

Therefore, from WIT we advise you to consult before any operation what type of products you want to commercialize; and thus study the customs process in case it is loaded with any tariff that conditions the viability of the commercial operation.

So, what are you waiting for to set up your ecommerce in Andorra? From WIT, we encourage you to contact us to advise you from the best tax perspective so that you do not fail to comply with any of your tax obligations.

Related Posts

Having a Dog or Cat in Andorra

Aprendizaje del Catalán en Andorra: Integración y oportunidades

Actualizaciones en la fiscalidad inmobiliaria y la inversión extranjera en Andorra

Vacant Property Tax (IHB) in Andorra

Your Premier Choice for Security and Investment Prosperity

Andorran Tax Calendar