Taxes

Value-Added Tax (V.A.T.)

A 24.5% virðisaukaskattur (value-added tax, or V.A.T.), commonly called VSK, applies to most goods and services. Usually the V.A.T. is included in a price; if not, that fact must be stated explicitly. Foreign visitors can claim a partial refund on the V.A.T., which accounts for 19.68% of the purchase price of most goods and services. Fifteen percent of the purchase price for goods is refunded, provided you buy a minimum of IKr 4,000 at one time. Souvenir stores issue tax-free forms that allow foreign visitors to collect the V.A.T. rebates directly in the duty-free store when departing from Keflavík Airport. To qualify, keep your purchases in tax-free packages (except woolens), and show them to customs officers at the departure gate along with a passport and the tax-free form.