🇮🇸 Tax Free in Iceland: The Complete Guide
Iceland, famous for its majestic landscapes and rich cultural heritage, attracts travelers from around the globe. An attractive feature for tourists is the opportunity to reclaim the 24% Value Added Tax (VAT) on purchases made during their visit. This essentially acts as a unique discount, offering significant savings on various items. Our guide provides an easy-to-follow approach to navigate the tax-free shopping process in Iceland
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Iceland Tax Free Rules
VAT Rate in Iceland
Iceland standard VAT rate is 23%, with certain goods reduced to 8% and 5%.
Who Can Shop Tax Free in Iceland
A tourist that resides outside of the EU, permanently.
Minimum Amount Per Receipt
You must purchase goods to be taken with you out of the EU for at least 200 PLN (~$50 USD) for each transaction.
How Long Until Refund Expiry
You must take your purchased goods out of the EU within three months of purchase (at the end of the third month).
Are you a retail store? See how Pie VAT can help you maximize your tourist success.
Learn more here: Tax Free for Retailers
How to Shop Tax-Free in Iceland: Step-by-Step
At the Store: When making a purchase, inform the store personnel that you are a non-resident tourist and would like to avail of the tax-free shopping benefit. They will help you with the necessary paperwork.
Heading on your travels on business or vacation and need some more information on using Pie VAT? - We've got you covered here.
Before Departure: Ensure that the goods are with you and ready for inspection. Keep the Tax Refund Cheque handy for the customs process.
With Pie VAT: you will use our app instead of manually filling out numerous forms!
Departing Iceland At your point of departure, such as Keflavik Airport, present the Tax Refund Cheque and the goods for customs inspection. The Embassy of Iceland in Brussels cannot custom clear goods; it must be done in Iceland by a customs official.
Receiving Your Refund Once your Tax Refund Cheque is approved, you can cash it in the currency of your choice at Keflavik Airport. Other departure points typically offer mail-refund services.
With Pie VAT: withdrawal of your VAT refund is digital (through the Pie VAT app), and refunds are generally received within 24 hours!
Iceland Tax Free Tips
Research Participating Stores:
Before you start shopping, it's helpful to identify which stores participate in the tax-free scheme. Look for stores displaying signs that indicate tax-free shopping is available.
Keep All Receipts and Forms Organized:
In Iceland, after completing your purchases, it's essential to keep all your receipts and the Tax Refund Cheque forms safe and well-organized. This careful organization is crucial as it will greatly simplify the process when you present these documents at customs for your VAT refund. Having your receipts and forms in order ensures a smoother and more efficient process, helping you to avoid any complications or delays when claiming your tax refund at the Icelandic customs.
Understand the VAT Refund Process:
Familiarize yourself with the VAT refund process in Iceland. Knowing the steps in advance can save time and prevent any last-minute hassles.
Check Item Eligibility:
Not all items may be eligible for a VAT refund. It's important to check with the store which items qualify for tax-free shopping
Don't be shy to ask for help.
Our in-app customer support team is available 24/7 to help answer any questions about your claim, required documents, eligible purchases, or anything else!
