VATCalculate VAT in Iceland
VAT in Iceland: add or remove 24% or one of the reduced rates from any amount in ISK, with the result shown instantly.
Iceland VAT · VSK
How to calculate VAT in Iceland
Adding VAT to a net price
VAT = net × 24 / 100
Gross = net × 1.24
Removing VAT from a gross price
Net = gross / 1.24
VAT = gross − net
Remember that the tax share of a gross price is smaller than the rate itself: at 24% it is 19.35%. That is why you divide by 1.24 rather than subtracting 24%.
VAT rates in Iceland
Iceland uses 2 VAT rates: a standard rate of 24%, reduced rate of 11%. The standard rate is above the Europe average of 20% and shared with 2 other countries in our list.
Official source: skatturinn.is. Rates checked October 2026.
VAT examples in ISK
Common amounts with 24% VAT added:
| Net | VAT 24% | Gross |
|---|---|---|
| 1,000 ISK | 240 ISK | 1,240 ISK |
| 5,000 ISK | 1,200 ISK | 6,200 ISK |
| 10,000 ISK | 2,400 ISK | 12,400 ISK |
| 50,000 ISK | 12,000 ISK | 62,000 ISK |
| 100,000 ISK | 24,000 ISK | 124,000 ISK |
| 1,000,000 ISK | 240,000 ISK | 1,240,000 ISK |
Removing VAT from gross prices
| Gross | Net | VAT |
|---|---|---|
| 6,200 ISK | 5,000 ISK | 1,200 ISK |
| 12,400 ISK | 10,000 ISK | 2,400 ISK |
| 62,000 ISK | 50,000 ISK | 12,000 ISK |
| 124,000 ISK | 100,000 ISK | 24,000 ISK |
Questions about VAT in Iceland
What is the VAT rate in Iceland?
The standard VAT rate in Iceland is 24%. Reduced rates of 11% apply to selected goods and services.
How do I add 24% VAT to a price?
Multiply the net price by 1.24. For example 50,000 ISK × 1.24 = 62,000 ISK.
How do I remove VAT from a gross price in Iceland?
Divide the gross price by 1.24. For example 62,000 ISK ÷ 1.24 = 50,000 ISK net; the difference is the VAT.
How much of a ISK price is VAT?
At 24%, VAT makes up 19.35% of the gross price (24 ÷ 124).