Operators must submit passenger reports within seven days of departing Iceland, with an ISK 400 lodging tax for domestic voyages and an ISK 2,500 infrastructure charge for international docked vessels.
Iceland’s Revenue and Customs issued guidance for cruise ship operators on lodging tax and infrastructure charges.
Under the guidance, operators must submit electronic reports within seven days of leaving Iceland’s customs territory, detailing the number of passengers. A lodging tax of ISK 400 applies per 24-hour period for domestic voyages, and an ISK 2,500 infrastructure charge applies to international voyages when the vessel is docked in Iceland.
However, exceptions are available for emergencies and crew members.
Earlier, Iceland’s Minister of Finance and Economic Affairs proposed a draft bill on 15 October 2024, outlining various taxes and duties on lodging, VAT, and other services.
The proposed amendments introduce a new ISK 2,500 infrastructure fee for international cruise passengers, adjust lodging taxes for domestic cruises, hotels, and camping, and exclude lodging tax from the VAT base.
