Iceland VAT Calculator
Add or remove VAT in seconds. The standard rate in Iceland is 24%, and you can switch to 11% with one click.
Price including VAT
ISK 124
- Net amount
- ISK 100
- VAT at 24%
- ISK 24
- Gross amount
- ISK 124
Iceland VAT rates
| Rate | What it applies to |
|---|---|
| 24% | Standard rate: most goods and services |
| 11% | Reduced. Food, hotels and guesthouses, books, newspapers and music, home heating, passenger tours, radio and TV subscriptions |
Zero rate: exports. Exempt: health care, education, cultural and sports activities, public transport, postal, property sales and rental, insurance and banking.
How to calculate VAT in Iceland
- To add VAT: price before tax × 1.24 = price including tax. For example, 100.00 × 1.24 = 124.00.
- To remove VAT: price including tax ÷ 1.24 = price before tax. For example, 124.00 ÷ 1.24 = 100.00.
- The tax inside a price that includes it: price including tax × 24 ÷ 124. For 124.00 that is 24.00.
Registering for VAT and invoicing
- When to register
- ISK 2,000,000 taxable sales in 12 months.
- Local name
- Virðisaukaskattur (VSK)
Recent changes and things to know
No rate change in 2025 or 2026.
Iceland VAT: frequently asked questions
What is the VAT rate in Iceland?
The standard VAT rate in Iceland is 24%. Other rates: 11% (food, hotels and guesthouses, books, newspapers and music, home heating, passenger tours, radio and TV subscriptions).
How do I add VAT to a price?
Multiply the price before tax by 1.24. For example, 100 plus 24% VAT is 124.00.
How do I remove VAT from a price?
Divide the price including VAT by 1.24. For example, 124.00 including 24% VAT is 100.00 before tax. Do not just take 24% off the total, because that gives the wrong answer.
When do I have to register for VAT in Iceland?
ISK 2,000,000 taxable sales in 12 months.
Is this VAT calculator free?
Yes. It is free, needs no sign-up and runs in your browser, so nothing you type is sent to BunnyDoc.
Sources
Rates checked in October 2026. Tax rates and rules change, and what you charge depends on what you sell and to whom, so check the official sources above or ask an accountant. This page is general information, not tax advice.
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