E-Commerce is a good opportunity for companies in Andorra if they are correctly structured, since Andorra is a country with great motivation for international e-commerce businesses. This is due to its tax advantages and a secure legal framework with multiple operational advantages for your company, difficult to overcome by any other country in Europe. The corporate tax is 10%, with some exceptions for international trade, which can reach only 2%, and with a VAT regime that has its maximum rate of 4.5%.
We are specialists in how to create companies in Andorra of this type, such as lead generation, affiliates, e-commerce, among others.
Andorra is a country that is very well located to serve all Europe, since it is located between France and Spain. Its inhabitants are multilingual, as they speak Spanish and Catalan, and very often French, and even Portuguese. The costs of social security are very reasonable, which favors hiring in case of fulfillment support needs in general, or in the call center.
Companies can use both postal services of France and Spain, since Andorra depends on any of them. Goods that enter Andorra must pass through Customs before moving to Europe, given that the Principality doesn’t belong to the European Union. Although this implies more costs in customs paperwork and transport, these expenses can be compensated by the Andorran prosecutor’s office, depending on the VAT rate applied to the country of destination and the type of product, and also by the type of taxation in the Principality of Andorra.
Dropshipping is the solution to avoid costly fulfillment operations through European warehouses, or for import and export. Using the Andorran database for billing goods shipments to the customer, directly from the product located anywhere in the world, as in the traditional dropshipping model.
Certain platforms like Ebay or Shopify offer easy entry into the international trade business, but you have to take into account the relationships with the supplier, in reference to shipping costs and VAT.
Some of the products that can fit into the e-commerce model in Andorra may be specific niche products, such as alcoholic beverages, nutritional supplements or products that may need specific licensing and regulation. The specific regulations have to be fulfilled, because Andorra must comply with international regulations in all these specific products.
Andorra can use part of its e-commerce operations using Amazon’s fulfillment, even if there are certain restrictions or a small momentary complication.
The fulfillment through Amazon, is today the best option for most online vendors and the preferred option for an e-commerce operator.
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