Iceland COVID-19 VAT measures
- Oct 24, 2020 | Richard Asquith
24 Oct, VAT payment deadlines on returns have been delayed: Sept filing payment now due 5 Nov; Sept & Oct bi-monthly filers and Oct filers now due by Dec 7.
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.
- 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.