This tool helps you quickly calculate the Value Added Tax (VAT) for goods and services in Iceland. Whether you need to calculate the VAT amount included in the price or determine the total price after VAT is added, this calculator simplifies the process. Select the appropriate VAT rate, enter the amount, and get accurate results instantly. Use this calculator to ensure you’re making informed decisions about VAT in Iceland.
Iceland VAT Calculator
Use this tool to calculate VAT (Value Added Tax) for goods and services in Iceland. You can easily determine the VAT amount whether it is included or excluded from the price. Find Iceland’s VAT rates here.
Calculation Results
Disclaimer: This tool is for informational purposes only and should not be used as legal or financial advice.
Frequently Asked Questions (FAQs) – Iceland VAT Calculator
1. What is VAT in Iceland?
VAT (Value Added Tax) in Iceland is a consumption tax applied to goods and services. The standard VAT rate is 24%, while a reduced rate of 11% applies to specific goods and services.
2. What are the VAT rates in Iceland?
There are two primary VAT rates in Iceland: 24% for standard goods and services, and 11% for certain items like food and hotel accommodations. Some goods and services are exempt from VAT (0%).
3. How do I use the Iceland VAT calculator?
Simply enter the amount and select the appropriate VAT rate (standard, reduced, or exempt). Then choose whether VAT is included or excluded from the amount to calculate the VAT and the total price.
4. What does “Include VAT” mean?
It means the total amount you entered already includes VAT, and the calculator will determine how much VAT is included in that total.
5. What does “Exclude VAT” mean?
It means the amount you entered is the base price, and the calculator will add VAT to it based on the selected rate.
6. Can I use a custom VAT rate?
Yes, you can select “Add Custom Rate” and enter your desired percentage if the standard or reduced rates do not apply.
7. Who needs to pay VAT in Iceland?
Most businesses and individuals involved in the sale of taxable goods or services in Iceland are required to collect and pay VAT.
8. Are there any VAT exemptions in Iceland?
Yes, exports, international services, and certain food items are exempt from VAT. Specific medical and educational services may also be exempt.
9. Do tourists pay VAT in Iceland?
Yes, tourists pay VAT on most goods and services in Iceland. However, they can claim a VAT refund for purchases made during their stay when departing the country.
10. How often do VAT rates change in Iceland?
VAT rates in Iceland are typically stable, but any changes would be made by the Icelandic government. It’s important to check current rates before making calculations.
11. Is VAT included in the price I see in stores?
In most cases, the price displayed in stores includes VAT. However, always check if the price is VAT inclusive or exclusive to avoid confusion.
12. How do I calculate VAT on imported goods?
For imported goods, VAT is generally calculated on the total cost of the goods, including shipping and handling fees. The Icelandic Customs Office can provide specific details.
13. How is VAT calculated for services in Iceland?
VAT on services in Iceland is calculated similarly to goods. If the service is taxable, the appropriate rate (24% or 11%) is applied to the service fee.
14. Can I claim back VAT if I’m not a business?
No, only VAT-registered businesses can claim back VAT on their purchases. However, tourists can get refunds on certain purchases through the VAT refund scheme.
15. Is this VAT calculator accurate?
Yes, this VAT calculator provides accurate results based on the rates provided. However, for official and complex situations, it’s advisable to consult a tax professional.