What is the VAT rate in Iceland?

Iceland's standard VAT (VSK) rate is 24%. A reduced rate of 11% applies to food, books, and accommodation.

What is the minimum for tax free shopping in Iceland?

You must spend at least ISK 12,000 at a single store.

Is Iceland part of the EU tax free system?

No. Iceland is not in the EU and has its own independent tax refund scheme. You must get your form validated and collect your refund in Iceland before departure, not at another EU exit point.

Where do I get my refund at Keflavik Airport?

Keflavik Airport (KEF) has a tax refund desk in the departure hall. Get your form validated and collect your refund there before going through security.

How much refund can I expect in Iceland?

With a 24% VSK rate, gross VAT is about 19.4%. After processing fees, expect a net refund of approximately 12-16% on standard-rated goods. Food and books at 11% yield smaller refunds.

Last updated: 28.03.2026

Iceland Tax Free Shopping Calculator 2026

Calculate your Iceland VAT (VSK) refund instantly. Iceland has a 24% standard VSK rate. Use our free calculator to see your estimated refund on tourist purchases.

This calculator provides estimates based on standard Iceland VAT rates. Actual refund amounts depend on the tax-free operator and their processing fees. Always confirm details at the store.

Calculate Your Iceland Tax RefundUpdates instantly

Enter your purchase amount in Iceland. Standard VAT rate: 24%. Minimum spend: ISK 12,000.00.

Example: ISK 36,000.00 purchase in Iceland

ISK 5,922.58estimated refund (16.45% back)

VAT included: ISK 6,967.74After processing fee: −ISK 1,045.16

Enter your actual purchase amount above for a precise calculation.

VAT rates in Iceland

Standard rate (general goods)24%

Food, Books11%

Not eligible for tax refund

×Services (hotels, restaurants, transport, tours)
×Digital goods and downloads
×Goods consumed in-country (food eaten on-site)
×Motor vehicles and boats
×Goods for commercial or business use
×Goods shipped directly by the retailer (already VAT-free)

Compare tax free refunds across 46 countries→

Frequently asked questions

Compare with other countries

Norway

Denmark

Sweden

Source: https://www.skatturinn.is/

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