Country tax profile · 2026
Iceland VAT / sales tax
How Iceland taxes VAT / sales
Iceland charges a standard VAT/GST of 24% on most goods and services, with reduced rates on some essentials.
Compiled by MyNomadWorld for Iceland and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
How Iceland's VAT / sales tax compares
Iceland's VAT / sales tax of 24% is the 7th highest of the 196 countries we track, against a global average of 14.1% and a Europe average of 18.4%.
Countries with a similar VAT / sales tax
Greece (24%) · Estonia (24%) · Portugal (23%) · Croatia (25%) · Poland (23%) · Ireland (23%)
Who is a tax resident of Iceland?
More than 183 days in any 12 month period from arrival, or a home in Iceland. A 3 year tail of liability applies after leaving, unless you can show you are taxed in another country.
Related Iceland taxes
Moving to Iceland?
Get matched with a vetted Iceland tax & immigration advisor who handles residency and the exit from your current country.
See advisors →Iceland VAT / sales tax FAQ
What is the VAT / sales tax rate in Iceland?
Iceland charges a standard VAT/GST of 24% on most goods and services, with reduced rates on some essentials.