Iceland Virðisaukaskattur (VSK / VAT) standard rate
Iceland Virðisaukaskattur (VSK / VAT) standard rate is 24 percent, in force since 1 Jan 2015. Last checked against the official source on 12 Sep 2026.
The standard rate of virðisaukaskattur (value added tax) on supplies of goods and services in Iceland, levied under Lög nr. 50/1988 um virðisaukaskatt (VAT Act 1988) and administered by Skatturinn (Iceland Revenue and Customs / Skatturinn, formerly Ríkisskattstjóri). Iceland is NOT in the EU, so its VAT is a national tax outside the EU VAT Directive — but it is a conventional destination-based VAT and non-resident suppliers of electronic services to Icelandic consumers must register.
| Current value | 24 percent |
|---|---|
| In force from | 2015-01-01 |
| Official source | Skatturinn — Value Added Tax (companies): standard rate of VAT in Iceland is 24%; reduced rate 11%. Confirmed against Skatturinn's 'Key rates and amounts 2026' page, which lists VAT standard rate 24% and reduced rate 11% for 2026. |
| Last verified | 2026-09-12 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
TWO RATES, ONE SERVED. Standard rate 24% — unchanged since 1 January 2015, when it was cut from 25.5% in the same reform that RAISED the reduced rate from 7% to 11%. The 11% reduced rate (notes only, not the served value) covers: hotel, guesthouse and short-term accommodation (rental under one month), campsites, food and catering including alcoholic beverages, passenger transport that is not exempt, travel-agent and tour-operator services and licensed guide services, spa/sauna/health facilities, road tunnel tolls, radio and TV subscriptions, books, newspapers and magazines (print and electronic), recorded music, geothermal hot water, electricity and heating oil, condoms and reusable nappies. A 0% rate (zero-rating with input deduction) applies to exports and certain international services; some supplies (health, education, financial services, letting of real property) are exempt without deduction. TRAP: a legislated cut of the standard rate to 22.5% from 2019 was widely reported in 2015-2016 tax-plan coverage and is still repeated by aggregators — it was never brought into force. The rate is 24% and has been for eleven years. Registration threshold: turnover of taxable goods and services of ISK 2,000,000 or less in any twelve-month period from the start of business is exempt from registration (raised from ISK 1,000,000 on 1 January 2017).
Get it programmatically
curl https://euroref.dev/v1/is/vat
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://euroref.dev/v1/is/vat/history?from=2020-01-01
# Provenance: curl https://euroref.dev/provenance/is/vatOther Iceland series: Central Bank of Iceland key interest rate · Statutory default interest (dráttarvextir) · VAT registration threshold · General statutory minimum wage (none — structural null) · Public holidays (frídagar og helgidagar) · CPI inflation (vísitala neysluverðs, twelve-month change) · Tekjuskattur lögaðila · Withholding tax rates · Tekjuskattur og útsvar einstaklinga · Statutory social-insurance contributions · Central Bank of Iceland reference exchange rates
The same figure elsewhere: Ireland · Italy · Latvia · Lithuania · Luxembourg · all 34