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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.

Web Developer Services to Invoice

  • Website development
  • Web application development
  • E-commerce solutions
  • API development
  • Maintenance & support
  • Bug fixes
  • Hosting management

Invoice Requirements in Iceland

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

Payment Terms

50% deposit, 50% on launch. For larger projects, use milestone payments tied to sprints.

Reiðufé14 dagar30 dagarGjalddagi

Payment Methods in Iceland

Bank TransferCredit CardCash

Web Developer Invoice Tips

  • Reference repository commits or versions
  • Break down by feature or sprint
  • Include deployment details
  • List technology stack
  • Document maintenance separately

Frequently Asked Questions

What tax rate applies to web developer 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 web developers in Iceland?

Common payment methods in Iceland include: Bank Transfer, Credit Card, Cash. 50% deposit, 50% on launch. For larger projects, use milestone payments tied to sprints.

What should web developer invoices include in Iceland?

Your invoice should include: Kennitala, VSK number, Business address, Client kennitala. For web developer services specifically, also include: Website development, Web application development, E-commerce solutions.

How should web developers bill for projects?

Break down by feature, page, or sprint. Include hours for development, testing, and deployment.

Should developers charge for bug fixes?

Include a warranty period (30-90 days) for bugs in original scope. After that, charge hourly.

What VSK rates apply?

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