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Iceland raises VAT on hotels and other services


Iceland raises VAT on hotels and other services

Iceland has reshuffled its reduced VAT rates on a number of services.

A number of services were previously categorised at the lower, 7% reduced VAT rates.  These have now been upgraged to the standard VAT rate.  These include hotels, accommodation and cinema admissions.  The new rates apply from 1 January 2013.

In January 2010, Iceland raised its higher, standard VAT rate to 25.5%.  Some services will still remain at the zero VAT rate.


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 is part of the European leadership team which this year won International Tax Review's 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.