Calculate Icelandic VAT instantly
Convert a price without VAT into a price with VAT — and back — using Iceland's current VAT rates: 24% and 11%.
VSK.is is an independent calculator and information site, not affiliated with Skatturinn (the Icelandic Tax Authority) or any government body. VAT rates used here are based on public information from skatturinn.is.
What is VAT and how does it work?
Value Added Tax (VAT), called "virðisaukaskattur" or VSK in Icelandic, is an indirect consumption tax applied to almost all goods and services sold in Iceland, both domestically and on imports. Businesses collect the tax from customers and remit it to the state treasury, minus the VAT they themselves paid on their own purchases.
The difference between what a business collects (output VAT) and what it pays (input VAT) is the amount remitted to the Tax Authority. VAT settlement periods are typically every two months.
VAT rates in Iceland
Iceland has two active VAT rates, plus goods and services that are exempt or zero-rated.
- Most goods and services
- Electronics, clothing, telecommunications
- Accommodation, camping sites, passenger transport
- Food, newspapers, books and e-books
- Exports, financial services
- Residential rent, education
In-depth articles on Icelandic VAT
For those who want to delve deeper into the rules, exemptions, and implementation of VAT.
VAT for Freelancers and Sole Traders in Iceland
When a freelancer or sole trader must register for VAT, the ISK 220,000 threshold, and voluntary registration.
VAT on Digital Services and E-Commerce in Iceland
The ISK 2 million registration threshold, the B2B reverse charge, and how digital services differ from ordinary online goods.
VAT on the Sale of Used Goods in Iceland
Iceland taxes the full sale price of used goods, plus exemptions for private sales and charity shops.
Common VAT Bookkeeping Mistakes and How to Avoid Them
From mixed-up tax rates to forgotten zero returns — the errors that most often trigger a Tax Authority review.
VAT and E-Invoicing Requirements for Public Contracts
The EN 16931 standard, which public contracts it covers, and what it means for suppliers.
Icelandic VAT: Everything You Need to Know
A complete overview of how Iceland's VAT system is structured, who must register, and how it's enforced.
VAT Rates in Iceland: 24%, 11%, and Exemptions Explained
A full breakdown of what falls under each rate, and the difference between exempt and zero-rated sales.
How to Calculate VAT: Step by Step
The formulas, worked examples, and de-grossing percentages for finding VAT manually.
Frequently asked questions about VAT
What is VAT (VSK)?
VAT is an indirect consumption tax applied to nearly all goods and services sold in Iceland. Businesses collect the tax from customers and remit it to the state treasury.
What is the difference between the 24% and 11% rates?
24% is the standard rate, applying to most goods and services. 11% is the reduced rate, applying to things like accommodation, passenger transport, food, and books.
How do I calculate VAT on a price?
To find the price with VAT, multiply the price without VAT by 1.24 (for the 24% rate) or 1.11 (for the 11% rate). You can also use the calculator at the top of this page to convert automatically.
What is exempt from VAT in Iceland?
Exempt or zero-rated items include exports, financial services, residential rent, and education.
How often is VAT filed?
VAT settlement periods are typically every two months, though smaller businesses may qualify for annual or quarterly filing under Skatturinn's rules.