Iceland VAT Calculator 2026 – Add or Remove VAT (24%, 11%)
Free Iceland VAT calculator: add or remove VAT at 24%, 11% with a live breakdown, plus the registration threshold, filing rules and invoice requirements as of September 2026.
The calculation runs in your browser: nothing you type is uploaded or stored. Results are estimates for planning, not tax advice. Check your own case with your adviser or the tax authority.
VAT rates in Iceland
Every rate below is selectable in the calculator. The lists of goods and services are typical examples, not the full legal definitions.
| Rate | % | Typically applies to |
|---|---|---|
| Standard rate | 24% | Most goods and services |
| Reduced rate | 11% | Food and catering, hotel stays and campsites, passenger transport, tours and guides, books, newspapers, media subscriptions, alcohol, spas, tunnels |
Registration threshold
Exempt from VAT registration if taxable sales are ISK 2,000,000 or less in each 12-month period from the start of business
Returns and payment
Every two months as standard; pay within one month and five days after the period. Annual period for turnover under ISK 4,000,000; monthly option; six-monthly for agriculture
What an invoice must show
A full tax invoice must show:
How the calculation works
Adding VAT multiplies the net price by (1 + rate). Removing VAT divides the gross price by (1 + rate). Subtracting the rate from the gross price gives the wrong answer: 19% of 119 is 22.61, but the VAT included in 119 at 19% is 19.00. Amounts are rounded to two decimals at the end.
Frequently asked questions
What is the VAT rate in Iceland?
The standard VAT rate in Iceland is 24%. Other rates of 11% apply to the goods and services listed in the table on this page.
How do I add VAT to a net price?
Multiply the net price by 1.24 (1 plus the 24% standard rate). For example, ISK 100 × 1.24 = ISK 124, of which ISK 24 is VAT.
How do I work out the VAT included in a gross price?
Divide the gross price by 1.24. For example, ISK 124 ÷ 1.24 = ISK 100 net, so the VAT included is ISK 24. Taking 24% of the gross price would overstate the tax.
When does a business have to register for VAT in Iceland?
Exempt from VAT registration if taxable sales are ISK 2,000,000 or less in each 12-month period from the start of business
How often are VAT returns filed in Iceland?
Every two months as standard; pay within one month and five days after the period. Annual period for turnover under ISK 4,000,000; monthly option; six-monthly for agriculture
Are these rates up to date?
They were checked against Iceland Revenue and Customs (Skatturinn) and the other sources listed on this page on 30 September 2026. If a rate changes, type the new one into the rate field and the result updates at once.
Sources
- Value added tax (companies) — Skatturinn - Iceland Revenue and Customs
Rates, bands and thresholds were checked against these sources on 30 September 2026. Tax rules change: if a rate has moved, edit it in the calculator above.
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