Spain Refunds €6.2M VAT to Andorrans in 2025, Down 5.7%

Spain's Tax Agency (AEAT) refunded €6,218,215 in tax-free VAT claims to Andorran residents in 2025, a 5.7% drop of €374,514 from the €6,592,729 returned in 2024.

The refunds processed through the DIVA system saw 167,224 applications filed, with 158,502 approved—a rise of 11.8% in total claims from 149,607 the previous year. This increase reflects growing cross-border shopping volumes, though lower average amounts per claim pulled down the overall total.

Food purchases dominated the refunds, as in prior years, with most claims involving moderate quantities from supermarkets such as Mercadona in La Seu d'Urgell. There, food products face reduced VAT rates of 4% to 10%, versus Spain's standard 21% rate, making these trips popular among Andorrans for everyday groceries.

One report noted peaks in summer and Christmas periods, driven by Spanish and French visitors to Andorra, though it suggested electronics, fashion, and perfumery as leading categories in Andorran shops' outbound tax-free claims—a point differing from the inbound Spanish refund trends focused on food. Processing with Spanish authorities proceeded smoothly, with no major issues flagged by retailers.