Iceland

Iceland considers Occupancy Tax over VAT

December 12th, 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 …


Iceland

Iceland

November 9th, 2017

Iceland subjected foreign providers of electronic/digital services to VAT from 1 November 2011. Definition of Icelandic digital services Services delivered via the internet or other electronic networks subject to VAT include: Downloads or streaming movies, music, software and images Apps Automated databased services Online news and journals Website hosting and webpage hosting Remote systems administration Data …


Iceland

Iceland VAT rate to 22.5% 2019

April 6th, 2017

The Icelandic government is planning to reduce its standard VAT rate from 24% to 22.5% from 1 January 2019. The announcement came as part of the 2018 to 2022 fiscal budget plan. Iceland had raised its VAT rate to 25.5% during the global financial crisis in 2010, but cut it to 24% in 2015. Tourism …


Iceland

Iceland doubles VAT registration threshold

January 11th, 2017

Iceland has increased the annual taxable sales threshold for VAT registration from ISK1million to ISK2million. This will apply from 1 January 2017. The threshold only applies to resident businesses.  Non-resident businesses selling taxable supplies locally and who have to register face a nil threshold.


Iceland

Iceland cuts VAT rate from 25.5% to 24% January 2015

September 11th, 2014

Iceland has announced that it will lower its standard VAT rate from 25.5% to 24% on 1 January 2015. The reduced VAT rate will be increased from 7% to 12%.  The reduced rate applies to hotel accommodation, broadcast services, newspapers, recorded music and basic foodstuffs.  A number of previously exempt or zero rated supplies will …


Iceland

Iceland told to withdraw VAT measures

May 15th, 2014

The Icelandic government has been asked to unwind a number of VAT compliance measures by the European Free Trade Association (EFTA). It concluded that the VAT simplification changes provided unfair state aid for local IT sector companies at the expense of companies from other EFTA member states. Iceland has built a large international data processing …


Iceland

Iceland raises VAT on hotels and other services

January 10th, 2013

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 …