PCO can themselves request reimbursement or with the assistance of a third party (using
Form 10.36).
In this case it is relevant in which business sector the foreign company operates. If
the business would not be VAT liable if operated in Iceland then there can be no
refund (i.e. foreign travel agencies, banks or other non-Vat paying companies).
A third party, such as KPMG Iceland, can assist in applying for the VAT refund. Usually, the
cost may range between ISK 35,000 to 150,000 based on the scope and extent of the refund
(number of invoices and interactions with RSK).
EXAMPLE CONVENTION
A foreign PCO handles a weekend convention with 200 participants and the cost is as follows:
Flight - 0% VAT
120,000
Accommodation - 2 nights - 7% VAT
0%
% of refund
120,000
Rent of Venue - 2 days – 25.5% VAT
6.54%
6,000
Food and beverages - Lunch/dinner - 7% VAT
20.32%
80,000
PCO/ Activities/Lecturers – 25.5%
Conference data package – 25.5%
0%
40,000
20.32%
20,000 20.32%
Total cost is $386,000 and for each person $1,930. Total refund $21,259 or ISK 2,565,985*
A foreign PCO handles a weekend convention with 50 participants and the cost is as follows:
Flight - 0% VAT
30,000
Accommodation - 2 nights - 7% VAT
Rent of Venue - 2 days – 25.5% VAT
Food and beverages - Lunch/dinner - 7% VAT
% of
refund
0%
30,000
6,54%
2,000
20,32%
20,000
PCO/ Activities/Lecturers – 25.5%
Conference data package – 25.5%
0%
10,000
20,32%
5,000
Total cost is $97,000 and for each person $1,940. Total refund $5,416 or ISK 653,759*
*excluding the third party fee for handling the refund application.
FURTHER INFORMATION
Further information on this subject is available on the webpage of the Icelandic Directorate of
Internal Revenue, www.rsk.is/english
20.32%
