Introduction to VAT in Iceland (IS)

Iceland (IS) , as a member of the European Union, has its unique VAT system that businesses and consumers need to navigate. The standard VAT rate in Iceland (IS) is 24.00%, one of the lowest in Europe, affecting goods and services across the country. For detailed VAT rates and exceptions, use our VAT Calculator for Iceland (IS) to see how much VAT you need to pay or reclaim for transactions in Iceland (IS) .

Understanding Iceland (IS) 's VAT Rates

Iceland (IS) offers three main VAT rates:

• Standard Rate: 24.00% applies to most goods and services.
• Reduced Rate: 11% for essential goods like food, drugs, and books.
• Special Rate for Accommodation Services: %

Do I Need to Pay VAT in Iceland (IS) ?

Whether you're a business owner importing goods into Iceland (IS) or providing services within the country, understanding your VAT obligations is crucial.

Using the VAT Calculator for Iceland (IS)

Calculating the VAT for transactions can be complex. Our VAT Calculator simplifies this process, whether you're adding VAT to prices or extracting VAT amounts from gross sums. This tool is essential for businesses and individuals dealing with VAT in Iceland (IS) .

Navigating VAT Registration and Compliance

VAT registration in Iceland (IS) is mandatory for businesses exceeding a certain turnover threshold.

VAT Refunds in Iceland (IS)

If you've incurred VAT on business-related expenses in Iceland (IS) , you might be eligible for a refund.

Stay Updated with VAT Changes

VAT rates and regulations can change. Stay informed with the latest updates and insights on