Iceland VAT codes and rates
Iceland charges VAT at 24%, with other rates of 11%. When you create a company in Iceland, Nefin sets up 3 sales and 3 purchase codes, each tied to a box of the Virðisaukaskattsskýrsla (RSK 10.01). Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the Virðisaukaskattsskýrsla - sala and the Virðisaukaskattsskýrsla - innkaup, ready to file every month.
VAT codes from the Virðisaukaskattsskýrsla (RSK 10.01)
Each code is the box or line it fills on the Virðisaukaskattsskýrsla (RSK 10.01), named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| A | Skattskyld velta án VSK í 24% þrepi (reitur A)Default | 24% |
| B | Skattskyld velta án VSK í 11% þrepi (reitur B) | 11% |
| C | Undanþegin velta, svo sem útflutningur (reitur C) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| E-24 | Innkaup með 24% innskatti (reitur E)Default | 24% |
| E-11 | Innkaup með 11% innskatti (reitur E) | 11% |
| E-0 | Innkaup án virðisaukaskatts | 0% |
Iceland VAT books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
Virðisaukaskattsskýrsla - sala
Skattskyld velta
- [A]A - Skattskyld velta án VSK í 24% þrepi
- [B]B - Skattskyld velta án VSK í 11% þrepi
Undanþegin velta
- [C]C - Undanþegin velta, svo sem útflutningur
Totals Nefin calculates
- [D] D - ÚtskatturSum of the tax charged in [A] + [B]
Purchase book
Virðisaukaskattsskýrsla - innkaup
Innkaup
- [E-24]Innkaup í 24% þrepi
- [E-11]Innkaup í 11% þrepi
- [E-0]Innkaup án virðisaukaskatts
Totals Nefin calculates
- [E] E - InnskatturSum of the tax charged in [E-24] + [E-11]
Source
These codes were transcribed from the tax authority's own form or instructions: Skatturinn RSK 10.01 virðisaukaskattsskýrsla (30-4-2020) - https://www.skatturinn.is/media/rsk10/rsk_1001.is.pdf.
Frequently asked questions
What is the VAT rate in Iceland?
The standard rate is 24%. Other rates in use: 11%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which VAT codes does Nefin set up for a company in Iceland?
3 sales codes and 3 purchase codes, each named after the Virðisaukaskattsskýrsla (RSK 10.01) box it fills, for example A (Skattskyld velta án VSK í 24% þrepi (reitur A), 24%), B (Skattskyld velta án VSK í 11% þrepi (reitur B), 11%) and C (Undanþegin velta, svo sem útflutningur (reitur C), 0%).
How often is the Virðisaukaskattsskýrsla (RSK 10.01) filed?
Nefin defaults to monthly filing, the usual period for a small or medium registered business in Iceland. Your tax authority may assign you a different one.
Are these Iceland VAT codes official?
Yes. They were transcribed from the tax authority's own form or filling instructions (Skatturinn RSK 10.01 virðisaukaskattsskýrsla (30-4-2020) - https://www.skatturinn.is/media/rsk10/rsk_1001.is.pdf).
Does Nefin produce the Iceland VAT books?
Yes. The Virðisaukaskattsskýrsla - sala lists every invoice and the Virðisaukaskattsskýrsla - innkaup every bill, one row per document with a column for each return box, plus the totals the return asks for.