Standard

24%

Reduced

11% and zero-rated (0%)

Other

Exempt

Iceland VAT number format

Businesses in Iceland that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry of Finance, and will follow a certain format. The VAT number format is 12345.

Iceland VAT return periods for parties subject to registration

Businesses in Iceland that are required to collect tax from consumers must file regular tax returns with the Ministry of Finance in Reykjavik. Iceland's VAT return periods for parties subject to registration are:

Bimonthly

Annual (turnover less than ISK3,000,000)

Twice a year (agriculture)

Monthly (output VAT habitually lower than input VAT)

Weekly (fish processing)

Iceland Value-added tax (VAT) Thresholds

These are the revenue thresholds at which businesses in Iceland are required to start collecting and remitting tax.

Registration

ISK1,000,000 (registration optional if turnover is lower)

Recovery of VAT by non-established businesses

Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Iceland are required to collect taxes from the consumer.

Iceland VAT Refunds

Iceland has a VAT refund program that allows tourists and others to receive a refund of any Iceland VAT paid on goods purchased in Iceland that are being exported from the country.

The minimum purchase amount needed to claim a VAT refund is €6000.00 Euros (which would yield a VAT refund of about €1440). SalesTaxHandbook has detailed information about Iceland's VAT refund program: