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Iceland VAT Rates 2026

Iceland (Ísland) levies Value Added Tax under the name VSK-númer (Virðisaukaskattsnúmer). The standard rate is 24%, applied to most goods and services. Reduced rates of 11% apply to essential categories including food, medicines, and cultural services.

Access rates via API

The TaxID API returns current VAT rates for all 27 EU countries. Use the /api/v1/rates/IS endpoint to get Iceland rates 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", "standard_rate": 24,
#   "reduced_rates": [11], "currency": "ISK" }

Applying the correct rate in code

For B2B intra-EU sales, validate the customer's VAT number first. A valid registration means reverse charge applies — you charge 0% and the customer self-accounts. For B2C, charge the Iceland standard rate.

// 1. Validate the customer's Iceland VAT number
const vatCheck = await fetch(
  'http://localhost:3000/api/v1/validate/IS/CUSTOMER_VAT',
  { 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 VAT treatment
if (vatCheck.valid) {
  // B2B intra-EU: reverse charge — you invoice 0%, customer self-accounts
  applyRate(0, 'reverse_charge');
} else {
  // B2C: charge the Iceland standard rate
  applyRate(rates.standard_rate, 'standard');
}

About Iceland VAT

Iceland is part of the EEA but not the EU, so its VAT numbers are not in VIES. Iceland applies a 24% standard rate and 11% reduced rate (food, accommodation, books). The VSK-númer is 5 or 6 digits and is validated by RSK (the Icelandic Directorate of Internal Revenue).

The Iceland VSK-númer is administered by the national tax authority and validated through the EU VIES system. Before applying any VAT rate or zero-rate exemption to a Iceland business customer, validate their VAT registration number first.

VAT rates in other EU countries