Dropshipping Andorra

Digital Commerce companies using dropshipping find that Andorra is an attractive base for setting up their ecommerce company. Although Andorra is a not a major supplier, it does serve as fiscally beneficial hub for intermediary companies in the distribution channel between producer and final customer. The Principality also offers company owners personal residency options through their company owner / shareholder active residency program. Small drop shipping entrepreneurs might find this option to live and work from Andorra very beneficial.

Although Andorra is in Europe, it is not a part of the European Union (EU) and its VAT obligations may differ. Depending on a dropshipping company’s set up and product sourcing in Andorra there may be various opportunities to optimize its business’ VAT obligations. Often this is done using non-European suppliers to directly ship to EU consumers. Given that EU VAT law is very complex we recommend proper consultation to analyze if your Andorra digital commerce company qualifies for tax advantages. The place of fulfillment, the shipping destination, the country where the product originates are only a few aspects to consider when creating your dropshipping company in Andorra.

Companies considering drop shipping as a model in Andorra need to also investigate marketplace relevant compliance and payment channels available before setting up a business. There are limitations as opposed to other European Union countries when it comes to choosing PSPs, general payment platforms and registering in different marketplaces such as Amazon, Shopify or eBay. Many of these platforms do not have a proper legal infrastructure in Andorra yet. Therefore, alternative solutions for a company’s payment set-up may have to be considered.

Our consultants have dropshipping company set-up experience in Andorra. They can help you with all the relevant aspects of a business and its taxation implications and optimization. We recommend arranging a consultation session to discuss your needs.