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Iceland VAT Rates 2026

Iceland (Ísland) levies Value Added Tax as VSK (Virðisaukaskattur). The standard rate is 24%, applied to most goods and services. Reduced rates of 11% apply to food, accommodation, books, newspapers, admission to cultural events and sports.

Registration and filing

Access rates via API

The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/IS endpoint to get Iceland data programmatically. Responses are cached for 24 hours.

curl http://localhost:3000/api/v1/rates/IS
# No authentication required for rate lookups

# Response:
# { "country_code": "IS", "tax_type": "vat",
#   "standard_rate": 24, "reduced_rates": [11],
#   "currency": "ISK", "last_updated": "2026-01-01" }

Applying the correct rate in code

For B2B sales to Iceland, validate the customer's VSK-númer first — a verified registration is typically required for correct invoicing and zero-rated exports. For B2C, charge the Iceland VAT rate where registration rules require it.

// 1. Validate the customer's Iceland tax ID
const check = await fetch(
  'http://localhost:3000/api/v1/validate/IS/CUSTOMER_TAX_ID',
  { headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());

// 2. Fetch current Iceland VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/IS').then(r => r.json());
// → { standard_rate: 24, reduced_rates: [11] }

// 3. Apply the correct treatment for your supply
applyRate(check.valid && isB2BExport ? 0 : rates.standard_rate);

About Iceland VAT

Iceland trimmed its standard rate to 24% in 2015 while pushing the reduced rate up to 11%, narrowing the gap between bands to curb classification gaming. The 11% rate is the backbone of the tourism economy, covering hotels and travel services for the island's two-million-plus annual visitors. As an EEA member outside the EU, Icelandic VSK numbers are not in VIES and must be checked against Skatturinn's register.

VAT in Iceland is administered by the Skatturinn (Iceland Revenue and Customs). Before applying any zero-rate or exemption to a Iceland business customer, validate their registration first.

Sources: PwC Worldwide Tax Summaries · Skatturinn — VSK (accessed Jun 2026)

Rate history

• 2015Standard rate cut from 25.5% to 24%; reduced rate raised from 7% to 11%

Frequently asked questions

VAT & GST rates in other European countries