Tax free Shopping

In Reykjavik you will find more places to claim tax refund. In Keflavik Airport and shopping malls like Kringlan and Smáralind offices offers this service.

VAT

Value Added Tax (VAT) is refunded on all purchases exceeding 4000 ISK upon request, subject to the conditions of regulations. VAT is included in the marked-up price, and is collected in two brackets, 11% and 24%, depending on the goods and services purchased. The VAT refund will therefore be 20% (19.35%) for the higher bracket or 10% (9.91%), for the lower bracket. Maximum refund is 15% of the retail price.

To be eligible for refund all of the following conditions must be met:
- The buyer must have a permanent address outside of Iceland
- The buyer will bring the goods out of the country within three months of the purchase.
- The purchase price of the goods with VAT is a minimum of ISK 4,000.
- The articles along with required documents are produced at departure.


Departure formalities

On departure from the country, the buyer shall produce the articles along with a refund cheque to the refund service provider, who will purchase it subject to the fulfilment of all the conditions of this regulation. The refund provider may not purchase the cheque unless the buyer supplies sufficient proof that s/he is a permanent resident abroad. If the amount of the refund exceeds ISK 5,000, the customs authorities shall confirm the export of the goods with a signature on the cheque.

 

See a refund calculator here