Iceland raises VAT on hotels and other services
Iceland has reshuffled its reduced VAT rates on a number of services.
A number of services were previously categorised at the lower, 7% reduced VAT rates. These have now been upgraged to the standard VAT rate. These include hotels, accommodation and cinema admissions. The new rates apply from 1 January 2013.
In January 2010, Iceland raised its higher, standard VAT rate to 25.5%. Some services will still remain at the zero VAT rate.