VATCalculate VAT in Iceland
VAT in Iceland: add or remove 24% from any amount in ISK, with the result shown instantly.
Iceland · VAT
How to calculate VAT in Iceland
Adding VAT to a net price
VAT = net × 24 / 100
gross = net × 1.24
Removing VAT from a gross price
net = gross / 1.24
VAT = gross − net
Do not subtract 24% from the total to find the net price — divide by 1.24 instead. Subtracting the percentage removes too much, because VAT is only 19.35% of the gross amount.
VAT rates in Iceland
The standard VAT rate in Iceland is 24%. Reduced rates: 11%. This is above the average for Europe (20%). Worldwide ranking by standard rate: #7 of 159 countries.
Official source: skatturinn.is. Rates checked: October 2026.
VAT examples in ISK
Common amounts with 24% VAT added:
| Net | VAT 24% | Gross |
|---|---|---|
| 1,000 ISK | 240 ISK | 1,240 ISK |
| 5,000 ISK | 1,200 ISK | 6,200 ISK |
| 10,000 ISK | 2,400 ISK | 12,400 ISK |
| 50,000 ISK | 12,000 ISK | 62,000 ISK |
| 100,000 ISK | 24,000 ISK | 124,000 ISK |
| 1,000,000 ISK | 240,000 ISK | 1,240,000 ISK |
Removing VAT from gross prices
| Gross | Net | VAT 24% |
|---|---|---|
| 6,200 ISK | 5,000 ISK | 1,200 ISK |
| 12,400 ISK | 10,000 ISK | 2,400 ISK |
| 62,000 ISK | 50,000 ISK | 12,000 ISK |
| 124,000 ISK | 100,000 ISK | 24,000 ISK |
Questions about VAT in Iceland
What is the VAT rate in Iceland?
The standard VAT rate in Iceland is 24%. Reduced rates: 11%.
How do I add 24% VAT to a price?
Multiply the net price by 1.24. For example 50,000 ISK × 1.24 = 62,000 ISK.
How do I remove VAT from a gross price?
Divide the gross price by 1.24. For example 62,000 ISK ÷ 1.24 = 50,000 ISK net; the difference is the VAT.
What share of a gross price is VAT?
At 24%, VAT makes up 19.35% of the gross price (24 ÷ 124).