Glossary
Fiscal and accounting dictionary
Fifty terms you will encounter on invoices, tax forms, and in conversations with your accounting firm—first in one sentence, then in plain English. Terms grounded in Andorran law include a link to the official source.
Taxation18
- IGIAndorra's General Indirect Tax (IGI), a consumption tax applied to supplies of goods and services.
- Output IGIThe IGI you charged your customers on the invoices you issued during the period.
- Input IGIThe IGI that your suppliers charged you on the purchase invoices for the activity.
- Reverse chargeThe case in which the obligation to settle the tax passes from the seller to the buyer.
- Taxable personThe person or entity legally responsible for fulfilling a tax obligation under Andorran law.
- ExemptionA transaction that falls within the tax but is exempt from being charged under the applicable rule.
- Pro rataThe rule that limits input-IGI deductions when an activity includes transactions both with and without a right to deduct.
- Taxable amountThe amount to which the tax rate is applied to calculate the tax.
- Tax amountThe tax produced by applying the relevant rate to the taxable amount.
- Model 900The official form with which the IGI corresponding to the period is declared and settled.
- Model 910The IGI self-assessment form for taxable persons registered under the special simplified regime.
- Corporate income taxThe tax on profits earned by companies resident in Andorra.
- Model 800The normal corporate-income-tax form for taxable persons with total revenue above €600,000, subject to any special regime.
- Model 810The official form for an Andorran corporate-income-tax payment on account.
- IRNRThe tax on Andorran-source income earned by people and entities that are not tax resident in Andorra.
- Model 700The official return used to report Andorran Non-Resident Income Tax for the applicable period.
- Model 710The official form used to report tax withheld from payments made to non-residents in Andorra.
- IRPFThe personal income tax on earnings received by individuals who are tax resident in Andorra.
Accounting16
- Annual accountsThe statements summarising a company's financial position and performance at the end of the year.
- Andorran General Chart of AccountsThe mandatory framework governing account names, transaction measurement, and the format of annual accounts in Andorra.
- Double-entry bookkeepingThe principle according to which every operation is recorded at the same time as the debit of one account and the credit of another, for the same amount.
- DebitThe left-hand side of a journal entry, where debit movements are recorded for the relevant accounts.
- CreditThe right-hand column of an accounting entry, where the credits for each operation are recorded.
- Journal entryThe accounting entry that records a specific economic operation in the journal.
- General journalThe chronological accounting record of all journal entries made during a financial year.
- General ledgerThe same postings as the journal, grouped by account rather than by date.
- Trial balanceThe summary of all accounts with their debit, credit and resulting balance totals.
- Balance sheetThe statement that shows what a company has and what it owes on a particular date.
- Income statementThe statement showing revenue, expenses, and profit or loss for a period.
- Financial yearThe twelve-month period for which profit or loss is measured and annual taxes are settled.
- Period closingThe work that brings an accounting period or financial year to a formal end.
- DepreciationThe distribution of the cost of a fixed asset over the years in which it is used.
- Accruals and deferralsAdjustments that assign income or expense to the financial year it belongs to rather than the year cash is received or paid.
- Fixed assetsAssets a business uses for more than one financial year rather than selling or consuming them.
Forms and records9
- NRTThe tax registration number that identifies a person or entity to the Andorran authorities.
- CASSThe Andorran Social Security Fund, the entity that manages the Principality's social security.
- CAEAAndorra's Classification of Economic Activities, the code that identifies what a company does.
- e-TràmitsThe online procedure portal of the Government of Andorra, where tax returns are submitted.
- BOPAThe Official Gazette of the Principality of Andorra, where Andorran legislation is published.
- Sole traderAn individual who carries on an economic activity on their own account.
- SLUA single-member limited company owned by one shareholder but legally separate from that person.
- Limited companyA company with two or more shareholders whose liability is limited to their contributions.
- Register of CompaniesThe registry in which Andorran commercial companies are registered and annual accounts are filed.
Documents5
- InvoiceThe document evidencing a transaction and determining the tax charged on it.
- Credit noteThe tax document that fully or partially corrects an invoice already issued.
- Pro forma invoiceA document with the appearance of an invoice that has no accounting or tax effects.
- QuoteThe offer made to the customer before providing the service or delivering the good.
- Invoice seriesThe consecutive and traceable numbering sequence to which an issued invoice belongs.
Banking3
This definition is general information, not tax or accounting advice. For your specific case, consult a professional and always check the official source.