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Iceland considers Occupancy Tax over VAT

  • Dec 11, 2017 | Richard Asquith

Iceland considers Occupancy Tax over VAT

The new Icelandic government has scrapped plans to introduce VAT on short-term room and house rentals. Instead, it will review an Occupancy Tax – similar to the nightly fees imposed by many EU cities such as Paris, Brussels and Rome.

It is not yet clear if the new levy will be a fixed, per night charge, or a % of rental fees. The Occupancy Tax would likely apply to commercial hotels and home rentals (via platforms such as Airbnb and HomeAway).


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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.