With globalization and e-commerce trade across borders has been on the rise for many years. However with small merchants and retailers increasingly using e-commerce platforms such as Amazon for their commercial presence as well as fulfillment the needs have fundamentally changed over the past decade. Nowadays merchants may live and work from all over the world while their goods are flowing from the provider either directly through drop-shipping or through a fulfillment specialist like Amazon to the final client.
Drop shipping and fulfillment solutions are eliminating the requirements of warehouses and let merchants focus on their marketing, brand development and sales.
Setting up your ecommerce in Andorra requires careful planning especially when considering the VAT implications your business may have operating with clients in the EU. Our consultants will analyze your current business model to understand the revenue flows and supply chain you have set up with your clients. Based on this we can make proper decisions how to handle VAT in the EU and streamline your VAT declarations.
An ecommerce company in Andorra is set up just like any other entity. Compliance is more strict as your firm will receive payments from different countries and for goods that are not physically in your possession. Therefore we may expect increased compliance by local banks to understand your business model. Our team will accompany you throughout this process. Payment processing may be a concern depending on which PSP or bank you are working with. Given its size Andorra is not one of the preferred countries for payment processors, however alternative options exist to structure your payment flow. Local banks provide credit card solutions and acquiring services, however they may not be as competitive in merchant rates as neighboring jurisdictions.
Finally to activate your company you require a physical space which may be a small office or a warehouse. To some degree you may also operate from your home office however restrictions apply and conditions for a proper office have to be met.
To fully benefit from the advantages that Andorra has to offer and give proper substance to your business in Andorra we recommend to live and work in Andorra as a shareholder of your ecommerce company. Dividends from the company are exempted from taxes if you are a proper tax resident in Andorra.
Speak with our team today about the advantages of an e-commerce company in Andorra.
Do you sell goods or services on the internet?
Would you like to optimize your business model for your fulfillment, taxation and living quality for yourself.January 8, 2018 E-Commerce Merchant Company formation + residency 12 Appreciate