IGI on software subscriptions sold in Andorra
The IGI (impost general indirecte) has a 4.5% general rate under Article 57 of Llei 11/2012. Electronically supplied services, such as software supply and updates, website hosting or remote maintenance, sold by a business outside the country to a non-business customer resident there are taxed there, and residence is presumed when payment comes from a local bank account (Article 44.4). When a supplier not established in the country sells to a business there, the customer is the taxable person (Article 52.1.b). For the product, the subscription record needs to know whether the buyer is a business or a consumer, where they are resident and how they paid. That belongs in the data model before the first invoice is generated, with each case covered by a test. Confirm your own position with an accountant before launch.
