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Iceland VAT rate to 22.5% 2019

  • Apr 5, 2017 | Richard Asquith

Iceland VAT rate to 22.5% 2019

The Icelandic government is planning to reduce its standard VAT rate from 24% to 22.5% from 1 January 2019.

The announcement came as part of the 2018 to 2022 fiscal budget plan.

Iceland had raised its VAT rate to 25.5% during the global financial crisis in 2010, but cut it to 24% in 2015.

Tourism services will be recategorised from the reduced VAT rate of % to the standard rate temporarily to help fund a cut in employer taxes.

 


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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.