Iceland considers Occupancy Tax over VAT

Tue 12th Dec 2017

The new Icelandic government has scrapped plans to introduce VAT on short-term room and house rentals. Instead, it will review an Occupancy Tax – similar to the nightly fees imposed by many EU cities such as Paris, Brussels and Rome.

It is not yet clear if the new levy will be a fixed, per night charge, or a % of rental fees. The Occupancy Tax would likely apply to commercial hotels and home rentals (via platforms such as Airbnb and HomeAway).

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