REGARDING:
DATE:
PLACE:
To:
AUTHOR:
Refund to foreign companies of VAT on purchases of goods and services in Iceland.
05.09.2013
Reykjavik
MICE professionals working in general in the Icelandic market
Meet in Reykjavík (Sigurjóna Sverrisdóttir) & KPMG-Iceland (Soffía Eydís Björgvinsdóttir)
MEMO
Foreign companies bringing their conference or meeting to Iceland have the legal right to apply for
refund of Vat on certain goods and services, but only if the business operations of the foreign
company would be VAT liable according to Icelandic law. The foreign company must not have had
any VAT liable operations in Iceland during the reimbursement period (sale of services or goods in
Iceland).
Examples show that this could amount to approximately 5.5 % of the total expenditure of the overall
event (see examples below).
Necessary forms are available at http://www.rsk.is/english/forms/ and the VAT periods are two
months; January/February, March/April etc. and annual refund is processed with the last VAT period
of each year. Refund amount for each VAT period shall be at least ISK 58,700 and annual refund
amount shall be at least 11,400.
A foreign PCO organizing a convention in Iceland can apply for a refund for all VAT invoices for goods
and services purchased in Iceland which are approved by Icelandic tax law. All invoices for purchased
goods and services must be issued in the name of the foreign PCO, which then can request the VAT
reimbursement in its own name. An Icelandic PCO on the other hand organizing a convention for a
foreign company cannot request a refund for goods and services purchased in Iceland.
A third party accounting services such as KPMG Iceland can assist in applying for the VAT refund.
Usually the cost may range between ISK 50,000 to 150,000 based on the scope and extent of the
refund (number of invoices and interactions with RSK).
