VAT Returns – Iceland


VAT Name :

VAT Number Format :
12345 (5 digits)

VAT Information Offices :
Directorate of Internal Revenue, Laugavegur 166, 105, Reykjavik
00354 442 1000


RateTypeWhich goods or services
22.5%StandardAll other taxable goods and services
11%ReducedHotels; Guestrooms; Private homes; Fishing lodges; Cottages, camps and hostels; Campgrounds; Food and alcohol; Travel agency; Tour operators and touring associations on behalf of others; Transport by air, land or sea including coach and bus trips; Self-employed guides; Spas and saunas
0%ZeroExports; Ships and aircraft; Exports of services


  • Healthcare services and certain social care services
  • Educational services
  • Libraries, museums and similar cultural services
  • Athletic services
  • Public transport services
  • Postal services
  • Rental of parking spaces
  • Banking, financial and insurance services
  • Lotteries and betting pools
  • Funeral services
  • Activities of authors and musical composers
  • Art sold by artists
  • Rental of real property, sale of real property
  • Sale of fishing rights


Registration Threshold : ISK 2.000.000 per annum
(below threshold registration can be on a voluntary basis)


Late Payment : 1% penalty charge for each day past due date up to a total of 10%; additional penalty is applied if VAT is not remitted within a month from due date. Additional surcharge of ISK 5.000 will be charged if electronic filed VAT statement is not made.


Standard Tax Period : 2-monthly (6 times per year)

Returns must be filed one month and 5 days after the reporting period.