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Iceland Tax Information

24% VSK

VSK (VAT) is 24% standard, 11% for hotels/books/food. No threshold - all businesses must register. Source: Icelandic Revenue and Customs.

Bookkeeper Services to Invoice

  • Monthly bookkeeping
  • Bank reconciliation
  • Accounts payable
  • Accounts receivable
  • Payroll support
  • Financial reports
  • Catch-up bookkeeping

Invoice Requirements in Iceland

Kennitala
VSK number
Business address
Client kennitala
VSK breakdown
Total in ISK

Payment Terms

Monthly retainer paid in advance. Catch-up projects 50% deposit.

Reiðufé14 dagar30 dagarGjalddagi

Payment Methods in Iceland

Bank TransferCredit CardCash

Bookkeeper Invoice Tips

  • Specify period covered
  • Include transaction count
  • Note software used
  • Reference deliverables
  • Document hours if applicable

Frequently Asked Questions

What tax rate applies to bookkeeper invoices in Iceland?

Iceland has 24% VSK. VSK (VAT) is 24% standard, 11% for hotels/books/food. No threshold - all businesses must register. Source: Icelandic Revenue and Customs.

What payment methods are common for bookkeepers in Iceland?

Common payment methods in Iceland include: Bank Transfer, Credit Card, Cash. Monthly retainer paid in advance. Catch-up projects 50% deposit.

What should bookkeeper invoices include in Iceland?

Your invoice should include: Kennitala, VSK number, Business address, Client kennitala. For bookkeeper services specifically, also include: Monthly bookkeeping, Bank reconciliation, Accounts payable.

How to price bookkeeping?

Monthly flat fee based on transaction volume. $300-2000/month typical for small business.

Charge for catch-up work?

Hourly or per-month-behind rate. Catch-up is intensive work, price accordingly.

What VSK rates apply?

Iceland has 24% standard VAT and 11% reduced rate for hotels, books, and some food. No zero-rated goods domestically.