VAT country page
VAT — Iceland
Rate table, invoice rules and calculator in one country-specific workflow.
Standard rate
24%
Reduced rates
2
Last updated
2026-04-11
VAT rates summary
The table combines standard and reduced rates so users can move from policy awareness into calculation.
| Rate type | Rate | Notes |
|---|---|---|
| Standard | 24% | Default national rate used for most taxable supplies. |
| Reduced | 11% | Food, books and some utilities. |
| Zero-rated | 0% | Exports and international supplies. |
Inputs
VAT calculator
Start from a net amount and add the selected VAT rate to obtain the VAT amount and gross total.
The calculator starts with the standard VAT rate for the selected country. Switch to a reduced rate where the product or service qualifies for it.
Data from Official national VAT authority · last checked 2026-04-11.
For planning and invoice checks. Confirm the applicable rate and tax treatment before issuing regulated documents.
Gross total
ISK 1,240
Based on a 24% VAT rate.
Net amount
ISK 1,000
VAT amount
ISK 240
How it works
The country VAT page combines reference data, invoice expectations and a live calculator because finance users typically need all three at once. That prevents the common pattern of bouncing between a rate table and a separate pricing tool.
Registration threshold note:: VAT registration required for businesses with annual turnover exceeding ISK 3,000,000.
Invoice checklist
- Icelandic VAT number (VSK) and registration number are mandatory.
- Invoice date and sequential numbering must be retained.
- Reverse charge applies for B2B services received from abroad.
Example use case
A consultant can confirm the standard rate, calculate a client invoice from a net fee, and then double-check invoice wording expectations before sending the document.
Frequently asked questions
Short answers to the questions people most often ask before relying on the page.
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