DeclarApp: Digital innovation to simplify the IGI declaration in Andorra

In an increasingly digitalized world, Andorra joins technological innovation with the launch of DeclarApp by the Ministry of Finance. This mobile application is a leap towards the modernization of administrative processes, facilitating the declaration of the General Indirect Tax (IGI) for purchases outside Andorra. DeclarApp not only represents an advance in the efficiency and accessibility of public services, but also reflects Andorra’s commitment to a more agile administration adapted to the needs of a connected society.

What is DeclarApp?

DeclarApp, an initiative of the Andorran Ministry of Finance, is a mobile application designed to simplify the declaration of the General Indirect Tax (IGI) on purchases made outside Andorra and in online stores. This digital tool makes it easier for users to manage and declare their taxes quickly and efficiently, including ‘tax free’ purchases and online purchases delivered through postal services.

The application not only streamlines administrative procedures, but also promotes equity in trade, balancing the conditions between local and international purchases. DeclarApp stands out as a clear example of how technology can improve government services, benefiting both consumers and local businesses.

How does DeclarApp work?

The declaration process through DeclarApp is simple and intuitive, designed to make it easier for users to manage their tax obligations in Andorra. To get started, users need a digital certificate, which guarantees the security and authenticity of transactions. Once authenticated, they must provide their census number and an email, where they will receive a barcode that serves as proof of IGI payment. This code is essential to present at border points in case of ‘tax free’ purchases or at postal services for package collection.

In addition, DeclarApp allows users to enter the package locator to validate the IGI payment before customs, thus facilitating home delivery by Correus and La Poste. This digital approach significantly reduces the need to travel to physical offices, optimizing users’ time and resources. With these functionalities, DeclarApp is positioned as an essential tool for the modernization of tax procedures in Andorra, offering a practical and efficient solution for the IGI declaration.

Legal changes and their impact on the economy

Starting January 1, 2024, Andorra will experience significant changes to its tax legislation, especially with regard to the Indirect General Tax (IGI). These changes, derived from Law 5/2023, imply the elimination of IGI payment exemptions for imports below 22 euros and for shipments to individuals below 220 euros. In addition, the elimination of exemption from customs duties and fees on imports of less than 22 euros is planned. These legal modifications, approved in the previous legislature, represent an effort to standardize and simplify the tax system, ensuring greater equity and efficiency in the tax collection process.

As a result of these changes, a notable increase in the number of IGI declarations through DeclarApp is expected. The Andorra Department of Taxes and Borders estimates that, by the end of 2024, declarations could reach 66,200, a significant increase compared to 2023 figures. This increase is mainly attributed to transactions carried out through postal services, reflecting the growing trend of online purchases and the importance of a tool like DeclarApp to efficiently manage these declarations. These legislative changes and the consequent increase in the use of DeclarApp underline Andorra’s evolution towards a more digitalized tax system adapted to contemporary needs.

Benefits and facilities for users and companies

DeclarApp not only simplifies procedures for individual users, but also offers significant advantages for companies and professionals. The application reduces the complexity and time invested in filing IGI, allowing companies to focus more on their core operations and less on bureaucracy. For professionals who handle imports and exports, DeclarApp represents a valuable tool to streamline their customs processes. In addition, the application facilitates adaptation to legislative changes, ensuring that companies comply with current regulations efficiently and without setbacks.

In addition, the Andorra Department of Taxes and Borders has implemented additional measures to simplify procedures in postal services, especially beneficial for the business sector. These include the promotion of a simplified procedure for importation through postal procedures and the implementation of the Declaration Printing Assistant (AID). These initiatives seek to make it easier for companies to fulfill their tax obligations in a more agile and accessible way. With these measures, DeclarApp and the Department’s complementary policies reinforce Andorra’s commitment to an efficient and technologically advanced business environment.