The standard rate of value-added tax (VAT) in Iceland is 24%. A reduced rate of 11% applies to certain products and services, including books, food and accommodation. VAT is included in quoted prices.

Tax-Free Shopping

Anyone who has a permanent address outside Iceland can claim a tax refund on purchases when they spend more than 6000kr at a single point of sale. Look for stores with a ‘tax-free shopping’ sign in the window, and ask for a form at the register.

Before you check in for your departing flight at Keflavík, go to the refund office at Arion Banki (located in the arrival hall opposite the car-rental counter) and present your completed tax-free form, passport, receipts/invoices and purchases. Make sure the goods are unused. Opening hours of the office match flight schedules.

If you're departing Iceland from Reykjavík airport or a harbour, go to the customs office before check-in.