Iceland VAT calculator 2026
Add or remove 24% VAT for Iceland.
- Net (excl. VAT)
- ISKย 100
- VAT
- ISKย 24
- Gross (incl. VAT)
- ISKย 124
How VAT works in Iceland
The standard VAT rate in Iceland is 24%, applied to most goods and services. For example, adding VAT to a net price of ISKย 100 adds ISKย 24 in tax for a gross price of ISKย 124; removing VAT from ISKย 124 gives back the ISKย 100 net price. Iceland also applies reduced rates of 11% to certain categories such as food, books or medicine.
| Rate type | Rate |
|---|---|
| Standard rate | 24% |
| Reduced rate | 11% |
Advertisement
Frequently asked questions
What is the VAT rate in Iceland?
The standard VAT rate in Iceland is 24%. Reduced rates may apply to specific goods and services.
How do I remove VAT from a gross price?
Switch to remove mode and enter the gross amount. We divide it by 1 plus the VAT rate to get the net price.
How do I add VAT to a net price?
Use add mode and enter the net amount. We multiply it by 1 plus the VAT rate to get the gross price including VAT.
Are reduced VAT rates included?
The calculator uses the standard rate of 24% by default. Many countries apply reduced rates to food, books or medicine, so check the rate for your specific category.
Is the VAT rate up to date?
We use the current standard rate for Iceland (24%). Rates change only when the law changes, and we update them when that happens.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026