Importing tools & hardware from Czech Republic — 2026 rules
When you import tools & hardware (HS heading 8205.59) — for example hand tools, power tools and fasteners — from Czech Republic to Iceland, you owe 0% general duty and 24% VAT on the full customs value (CIF price).
Tools are generally duty-free, but heavy shipments can raise freight cost and therefore the customs value.
The Czech Republic is part of the EEA, so shipments benefit from duty-free treatment for many product types under the EEA agreement, though VAT is always charged.
Worked examples
Here's how the total cost builds up for three sample item prices from Czech Republic, using an exchange rate of 6.1 ISK per CZK.
| Item price | Customs value (CIF) | Duty | VAT | Total landed cost |
|---|---|---|---|---|
| 10,000 CZK | 65,500 ISK | 0 ISK | 15,720 ISK | 83,170 ISK |
| 35,000 CZK | 218,000 ISK | 0 ISK | 52,320 ISK | 272,270 ISK |
| 100,000 CZK | 614,500 ISK | 0 ISK | 147,480 ISK | 763,930 ISK |
Step by step: customs clearance
- 1.The seller in Czech Republic attaches shipping documents (invoice, customs value and HS heading 8205.59) to the carrier's booking.
- 2.The carrier (post, FedEx, UPS or DHL) files an electronic customs declaration with Icelandic customs before the shipment arrives.
- 3.Duty and VAT are calculated on the customs value (CIF), and you receive a payment request, often before the item is released.
- 4.Once fees are paid, the shipment is released — for home delivery or pickup at the carrier's depot.
Frequently asked questions
Is there duty on tools & hardware from Czech Republic?+
No — tools & hardware carries no general duty under HS heading 8205.59, but 24% VAT is charged on the customs value regardless of the country of origin.
What is the customs value and how is it calculated?+
The customs value (CIF price) is the item price in Icelandic krónur plus freight and insurance to the Icelandic border. Both duty and VAT are calculated on this combined figure, not just the item's price.
Does the EEA/EFTA agreement with Czech Republic help?+
Czech Republic is covered by an EEA or EFTA free-trade agreement with Iceland. With a valid proof of origin (e.g. an EUR.1 certificate or an origin declaration on the invoice), duty on qualifying goods can be reduced or removed — VAT is still always charged regardless of origin.
Do I have to pay VAT on small shipments?+
Yes. Unlike many other countries, Iceland has no de-minimis threshold exempting low-value parcels — 24% VAT is charged on almost all incoming shipments, regardless of how small the declared value is.
How long does customs clearance from Czech Republic take?+
The Czech Republic is part of the EEA, so shipments benefit from duty-free treatment for many product types under the EEA agreement, though VAT is always charged.
Other categories from Czech Republic
| Category | Duty | VAT | |
|---|---|---|---|
| Consumer Electronics | 0% | 24% | View → |
| Smartphones & Mobile Devices | 0% | 24% | View → |
| Laptops & Notebooks | 0% | 24% | View → |
| Clothing & Fashion | 12% | 24% | View → |
| Shoes & Footwear | 10% | 24% | View → |
| Cameras & Optics | 0% | 24% | View → |
| Drones & UAVs | 0% | 24% | View → |
| Safety Gear & Protective Equipment | 0% | 24% | View → |
| Sports Equipment | 0% | 24% | View → |
| Leather Goods | 12% | 24% | View → |
| Audio Gear & Headphones | 0% | 24% | View → |