Iceland

Country Iceland
Currency ISK
EU Member State No
Standard VAT/GST rate 24%
Reduced VAT/GST rate 11% / 0%
VAT registration limit for established businesses Yes
VAT registration limit for non-established businesses  Yes
VAT return filing periods Monthly
Annual VAT returns Yes
Additional reporting requirements No
VAT recovery by non-established non-EU businesses Yes
Reverse Charge Yes
Fiscal representative required for non-EU businesses In certain circumstances, a non-established person may be directed by Icelandic tax authority to appoint a fiscal representative.
Statute of limitations Tax authorities in Iceland have the right to reassess tax returns for CIT six years prior to the year of the assessment (i.e. the statutory period of limitation is six years). The statutory period only reaches a maximum of two years in time if tax returns have been filled out properly and all necessary information presented for tax authorities to establish a correct assessment. This means that in the year 2018, tax authorities can, in theory, reassess the company´s tax back to income year 2012.

However, the limitation has been prolonged to ten years in case of income and assets in low-tax jurisdictions.

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