Iceland introduced Value Added Tax (VAT) in January 1990. The local term is Virðisaukaskattur.
Icelandic VAT is generally based on the European Union VAT regime since Iceland is a member of the European Economic Area. It is administered by the Ministry of Finance.
Non-resident companies providing the following taxable goods or services may have to apply for a VAT registration number:
Most B2B services provided to Icelandic businesses do not require a registration from the foreign provider – the reverse charge should be applied instead.
This guide covers the essential steps ecommerce sellers need to take now that the UK has left the EU Customs Union and VAT regime to keep their cross-border sales going, avoid extra tax costs and frustrated customers.
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