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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.

SaaS Services to Invoice

  • Monthly subscription
  • Annual subscription
  • Usage-based charges
  • Overage fees
  • Add-on features
  • Setup fees
  • Enterprise licensing

Invoice Requirements in Iceland

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

Payment Terms

Prepaid monthly or annually. Enterprise contracts may be Net 30.

Reiðufé14 dagar30 dagarGjalddagi

Payment Methods in Iceland

Bank TransferCredit CardCash

SaaS Invoice Tips

  • Include subscription period
  • Show plan details
  • Detail overages separately
  • Reference account ID
  • Include next billing date

Frequently Asked Questions

What tax rate applies to saas 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 saass in Iceland?

Common payment methods in Iceland include: Bank Transfer, Credit Card, Cash. Prepaid monthly or annually. Enterprise contracts may be Net 30.

What should saas invoices include in Iceland?

Your invoice should include: Kennitala, VSK number, Business address, Client kennitala. For saas services specifically, also include: Monthly subscription, Annual subscription, Usage-based charges.

How should SaaS companies invoice?

Include plan name, billing period, base price, overages, and total. Reference account ID.

How to handle usage-based billing?

Track usage throughout period. Invoice base plus overages with usage details.

What VSK rates apply?

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