A GUIDE TO VAT REFUNDS
FROM ICELAND

Reykjavik, Iceland

How to Get a VAT Refund from Iceland

This page deals with refunds for cross-border transactions, it does not address VAT refunds where both vendor and customer are based in the same country. If you are travelling to or conducting business with companies in Iceland, you may be eligible to claim back Icelandic VAT. We have compiled everything you need to know on this page about VAT refund eligibility, Icelandic VAT rates, deadlines for claiming the VAT back, the common services with refundable VAT and the processes to recover Icelandic VAT.

Who can Claim VAT Refunds?

 

If you are a VAT registered company, EU or non-EU, and have conducted cross border transactions in Iceland, where you are not registered, then you are eligible to recover the VAT charged according to Iceland’s local VAT deductible regulations.

Free VAT Recovery Guide

Everything you need to know about recovering taxes from cross-border business activity and travel.

Icelandic VAT Rates: VSK

Standard rate    24%

Reduced rate     11%  – This applies to accommodation.

Deadlines for Claims Submission

An application can be submitted at the earliest 15 days after the end of the year in question.

Icelandic VAT Rates: VSK

Standard rate    24%

Reduced rate     11%  – This applies to accommodation.

Deadlines for Claims Submission

An application can be submitted at the earliest 15 days after the end of the year in question.

VAT Refund Information

 

Retrospective Claims

A company can claim back VAT six (6) years retrospectively.

 

Rule of Reciprocity

An EU claimant can claim VAT from any other EU Member State and recover the VAT according to the Member State of Refund’s local VAT legislation.

Some countries will only grant a VAT refund if the country where your company is registered offers similar refund arrangements, the so-called rule of reciprocity.

Iceland does not apply the Rule of Reciprocity which means the Icelandic authorities can grant refunds to non-EU businesses even if the authorities in the non-EU country do not offer similar refund arrangements.

 

Services where VAT Refund is Available

The common services with refundable VAT are:

  • Accommodation
  • Fairs, seminars, exhibitions and related costs
  • Fuel (only transport companies)
  • Accommodation
  • Fairs, seminars, exhibitions and related costs
  • Fuel (only transport companies)

Latest VAT Rate Chart

Each countries rules and regulations vary. Our VAT chart gives you details about the recoverable VAT in the different countries.

VAT Refund Process

 

An application to the tax authority in Iceland be sent in original providing the following:

  1. Claimant’s details
  2. Summary of the refund request
  3. Application form
  4. Power of Attorney
  5. Details of each invoice related to the VAT refund application
  6. All original invoices related to the VAT refund must be included with the application
    and the invoice must be issued with the claimant’s company address on it.
  7. An original Certificate of VAT Status valid during the related refund period
    and not older than 1 year confirming the claimant’s business activities

 

Contact Us

For Additional information regarding the process and how we can assist,
please get in touch with us.
We have local offices to assist you further.

VAT Refund Process

 

An application to the tax authority in Iceland be sent in original providing the following.

  1. Claimant’s details
  2. Summary of the refund request
  3. Application form
  4. Power of Attorney
  5. Details of each invoice related to the VAT refund application
  6. All original invoices related to the VAT refund must be included with the application and the invoice must be issued with the claimant’s company address on it.
  7. An original Certificate of VAT Status valid during the related refund period and not older than 1 year confirming the claimant’s business activities

 

Contact Us

For Additional information regarding the process and how we can assist,
please get in touch with us.
We have local offices to assist you further.

Request a Call

Take the 1st step towards maximising VAT refunds.