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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.

E-commerce Services to Invoice

  • Product sales
  • Shipping
  • Gift wrapping
  • Express delivery
  • International shipping
  • Subscription orders
  • Wholesale

Invoice Requirements in Iceland

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

Payment Terms

Paid at time of order. Wholesale: Net 30 with credit approval.

Reiðufé14 dagar30 dagarGjalddagi

Payment Methods in Iceland

Bank TransferCredit CardCash

E-commerce Invoice Tips

  • Include SKUs
  • Show itemized shipping
  • Display taxes clearly
  • Reference order numbers
  • Include return policy

Frequently Asked Questions

What tax rate applies to e-commerce 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 e-commerces in Iceland?

Common payment methods in Iceland include: Bank Transfer, Credit Card, Cash. Paid at time of order. Wholesale: Net 30 with credit approval.

What should e-commerce invoices include in Iceland?

Your invoice should include: Kennitala, VSK number, Business address, Client kennitala. For e-commerce services specifically, also include: Product sales, Shipping, Gift wrapping.

What should e-commerce invoices include?

Order number, products with SKUs, quantities, shipping, taxes, and payment method.

How to handle international invoices?

Include clear currency, customs notes, and HS codes if required.

What VSK rates apply?

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