Icelandic VAT registration

What are the Icelandic VAT registration thresholds?

There is a VAT registration threshold for foreign companies providing taxable goods or services in Iceland. This is currently ISK 2 million annual turnover – calculated on a calendar basis. Businesses may apply for a voluntary VAT registration.

Foreign businesses surpassing this limit should register within eight days of passing this threshold and appoint a local VAT representative. This party is responsible for the submission of correct filings on behalf of the foreign tax payer.

Non-resident businesses may not apply for group VAT registrations.


What information is required to get an Icelandic VAT number and registration

VAT number applications may be applied for using form RSK 5.02. A scanned copy may then be emailed to the Director of Internal Revenue.

Documents required for a foreign company’s registrations include:

  • Completed application RSK 5.02
  • Appointment form for the local VAT agent
  • Articles of Association and Memorandum of Association
  • Certificate of Incorporation
  • Details of company Directors, plus copies of passports

Businesses may deregister if they fall below the annual registration threshold.

 


What is the format of an Icelandic VAT number?

Once VAT registered, businesses will receive a unique 5-digit VAT number, to be added to all tax invoices


What next?

Upon receiving a VAT number, businesses must levy, report and pay VAT charged on their taxable supplies.


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