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VAT refund in MICE sector in Iceland

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REFUND PROCESS Refund applications can be submitted according to the relevant VAT period or as an annual application. VAT periods are two months; January/February, March/April etc. Reimbursement application should be handed in before the 15th of the month following the VAT period. If the application is received within the timeframe according to the Regulation the processing period can be up to one month and five days after the end of the VAT period. For example, applications for the period March/April, received before 15 May, should be processed before 5 June. If an application is handed in too late it will be processed with applications for the following VAT period. An annual refund is processed with the last VAT period of each year. Applications should therefore be handed in before 15 January. REFUND AMOUNT LIMITS Refund amounts for each VAT period shall amount to at least ISK 58,700 Annual refunds shall amount to at least 11,400 PROFESSIONAL CONGRESS ORGANIZER – PCO A foreign PCO organizing a convention in Iceland can apply for a refund for all VAT invoices for goods and services purchased in Iceland (same conditions as above). All invoices for purchased goods and services must be issued in the name of the foreign PCO which can then request the VAT reimbursement in its own name. The service fee paid to the PCO by the customer for organizing the conference is a part of the business operations of the PCO abroad, payment is made abroad and therefore is neither subject to Icelandic VAT payments nor reimbursements, i.e. the PCO is not considered to be providing services in Iceland. The customer of the PCO does not apply for the reimbursement and therefore the type of business operation by the customer is of no importance, whether in the case of healthcare or other non-VAT liable service according to Icelandic law. A foreign non-VAT liable entity must use a foreign PCO to organize a conference for this VAT refund to be applicable. The foreign PCO himself can request reimbursement or with the assistance of a third party (using Form 10.36). An Icelandic PCO organizing a convention for a foreign company cannot request a refund for goods and services purchased in Iceland. The Icelandic PCO issues a conventional invoice with 25.5% VAT for the service of the PCO. The foreign companies purchasing the services from the Icelandic

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