VAT and GST rates by country / Iceland
Tax rate on an invoice in Iceland
The standard rate of vat (vsk 24%) in Iceland is 24%, according to PwC Worldwide Tax Summaries.
The invoice below starts at 24%. Change it to the rate that applies to your sale, and pick your currency in the settings.
The figure and where it comes from
- Standard rate
- 24%
- Tax name
- VAT (VSK 24%)
- Source
- PwC Worldwide Tax Summaries, last reviewed 22 June 2026
- Read by us on
- 2026-10-26
Rates change, and a standard rate is not the whole story. Check with Iceland's tax authority before you rely on it.
What this page does not cover
Reduced rates, exemptions, registration thresholds, who has to charge the tax, and whether you can charge it at all are not covered here. To work out the tax on one price, use the sales tax calculator. For the basics every invoice needs, see what to put on an invoice.
Questions
- What tax rate do I put on an invoice in Iceland?
- The standard rate is 24%, but whether it applies to your sale depends on what you sell, who you sell to and whether you are registered. The invoice tool starts at 24% and lets you change it.
- Are there reduced rates or exemptions in Iceland?
- Many countries have lower rates or exemptions for some goods and services, and thresholds below which a business does not have to charge the tax. This page gives the standard rate only. Check the source above or ask the local tax authority.
- Why does the invoice not start in my currency?
- The tool does not guess your currency from the country. Choose it in the settings next to the invoice.
Other countries are in the full list, and US states are on the sales tax page.