VATLive > Blog > Iceland > Iceland COVID-19 VAT measures

Iceland COVID-19 VAT measures

  • Aug 31, 2020 | Richard Asquith

31 Aug, The July VAT return payment deadline has been delayed until 7 September. The August return remittance deadline is extended to 5 October. Taxpayers reporting bi-monthly for the two months need not submit a payment until 5 October. There will be no penalites for these delayed deadlines.

9 July, May filings payment deadlines have been extended to first week of August. First week of September for May & June bi-monthly payments. Same for the June filing payments - first week of September.

23 April - VAT on 6 April due returns should be paid by 6 May to avoid interest. No penalties will apply for the rest of the year. VAT deductions on residential constructions or rentals will be 100% deductible. 

19 April - the Jan and Feb return payment has been extended again. This time to 15 May.

6 April update - Iceland has agreed Value Added Tax and other tax benefits for businesses during the coronavirus epidemic.

Measures include: 

  • Update 6 April - the VAT return deadline for January and February payments has been moved from 6 April to 16 April.
  • Deferred tax filings and payments until 15 January 2021 on application
  • Limited any fines or late payment interest
  • 100% VAT refunds up until 31 December 2020 for the building sector
  • Suspension of Accommodation Tax until the end of 2021. Taxes already collected this year are not due until February 2022.

There are a number of other tax reliefs. Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.

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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.

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