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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.

Consulting Services to Invoice

  • Strategy consulting
  • Management consulting
  • Advisory services
  • Workshop facilitation
  • Retainer arrangements
  • Project consulting

Invoice Requirements in Iceland

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

Payment Terms

Net 30 is standard. Milestone payments for large engagements.

Reiðufé14 dagar30 dagarGjalddagi

Payment Methods in Iceland

Bank TransferCredit CardCash

Consulting Invoice Tips

  • Include professional credentials
  • Break down phases clearly
  • Document deliverables
  • Consider value-based pricing
  • Reference engagement letter

Frequently Asked Questions

What tax rate applies to consulting 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 consultings in Iceland?

Common payment methods in Iceland include: Bank Transfer, Credit Card, Cash. Net 30 is standard. Milestone payments for large engagements.

What should consulting invoices include in Iceland?

Your invoice should include: Kennitala, VSK number, Business address, Client kennitala. For consulting services specifically, also include: Strategy consulting, Management consulting, Advisory services.

How should consultants structure invoices?

Include engagement reference, billing period, hours or deliverables, expenses, and payment terms.

Should consultants charge for travel?

Yes, charge 50% of hourly rate for travel or include in project fee. State policy upfront.

What VSK rates apply?

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