The Directorate of Internal Revenue issued a declaration on 9 January 2017 regarding VAT registration and invoice issuance. If the supply of goods and services is below ISK 2 million within a tax year duration, the business does not need to register for VAT purposes previously the amount was ISK 1 million.
Related Posts

Iceland consults proposed reforms to R&D tax incentive framework
Iceland’s Ministry of Finance has launched a public consultation on 7 October 2026 on a draft bill proposing
Read More
Iceland: MoF consults on proposed tax and customs reforms, including side-income relief and stricter non-profit oversight
Iceland’s Ministry of Finance and Economic Affairs has published a draft bill titled “The Icelandic Tax and Customs
Read More
Iceland: 2027 budget proposes financial institution tax hike, VAT measures
Iceland’s Ministry of Finance presented the 2027 Budget proposal on 7 September 2026, proposing higher taxes and
Read More
Iceland: MoF consults tax law changes on interest deductions, charities, rulings and nicotine products
Iceland’s Ministry of Finance and Economic Affairs (MoF) has initiated a public consultation on several proposed
Read More
Iceland proposes changes to vehicle kilometre tax from 2027
Iceland’s Ministry of Finance and Economic Affairs issued a legislative proposal on 2 September 2026 to amend the
Read More
Iceland approves industrial policy to boost growth, competitiveness through 2035
The Government of Iceland has approved a new industrial policy that sets out a long-term vision for economic growth,
Read More