Misc. documents

CONDITIONS The VAT must be directly linked to business operations abroad. The business operations of the foreign company would be VAT liable if the company would operate in Iceland. Operations of banks, insurance companies, travel agencies, healthcare services, educational services and public transports are not VAT liable in Iceland. The VAT in question must meet with the same criteria with which VAT registered companies must meet when utilising input VAT in their operations. VAT reimbursable in full is for example VAT on accommodation, admissions to fairs, conferences and exhibitions, tools and technical equipment, marketing and office expenses and phone expenditure in connection with accommodation. No VAT reimbursement is provided for VAT on food, transportation, airfare, expenditure on luxuries, amusement, entertainment, for leasing of property (more than one month), expenditure on property and for goods and services acquired by a travel organizer for the direct benefit of the traveller. For further information and interpretation of what cost is refundable Articles 15 and 16 of the Value Added Tax Act no. 50/1988 apply. The foreign company must not have had any VAT liable operations in Iceland during the reimbursement period (sale of services or goods in Iceland) NECESSARY DOCUMENTS Form RSK 10.29 – Application for VAT reimbursement to foreign enterprises must be filled out. Form RSK 10.36 – Authorization for VAT reimbursement to foreign enterprises must be filled out if the foreign company requests a third party to assist with the application. Both forms are available at http://www.rsk.is/english/forms/ Supporting documents to be handed in with the application form are: The original invoice, (will be returned after the process of the application); Invoices must be issued in accordance with the VAT Act; date of issue, name and reg. no. of the issuer and the purchaser, the sellers VAT number, description of sale, quantity, unit price and total price. Invoices must be pre numbered and the VAT amount shall be stated thereon. If the purchase is under ISK 6,000 cash register tickets (simplified invoices) are accepted. VAT certificate if applicable or a certificate from the Company Registry in the home country of the foreign company which shows the nature of its business (in order to determine whether or not the business operations would be VAT liable if carried out in Iceland).

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