Iceland VAT Guide for Nonresident SaaS and E-commerce
A practical guide for US SaaS and e-commerce companies selling into Iceland. Rates, registration thresholds, filing deadlines and e-invoicing status, pulled from the same data that powers our free tools.
Iceland is in the EEA but outside the EU VAT area. Nonresident sellers of B2C electronic services register for the simplified VOES scheme (VAT on Electronic Services) once supplies to Icelandic consumers exceed ISK 2,000,000 in any 12-month period. The standard rate is 24%. VOES has been in force since 2011, making it one of the earliest digital VAT regimes globally.
B2C electronic services (SaaS, streaming, online ads, digital downloads): register for VOES once supplies to Icelandic consumers exceed ISK 2,000,000 in any 12-month period. Tax rate is 24%.
B2B services to a VAT-registered Icelandic buyer: reverse-charge mechanism applies under the Icelandic VAT Act. Capture the buyer's VAT number for your records.
Goods sales: not in VOES. Standard import VAT applies at the border, typically handled by the importer of record.
VOES registration is digital-only. No Icelandic-resident representative required.
How to register
VOES is Iceland's lightweight scheme for nonresident digital service providers. Register through the Skatturinn portal; no fiscal representative required.
Where: via the Skatturinn portal at skatturinn.is. The portal handles registration and bi-monthly returns. Local link: Skatturinn (Iceland Revenue and Customs).
What you'll need: US tax ID (EIN), proof of business registration, expected Icelandic sales, bank account details (any currency). No Icelandic-resident representative needed.
Typical timeline: 1 to 3 weeks. VOES is designed for fast onboarding of nonresident digital-services sellers.
Cost: Free. No fiscal representative fees and no bank guarantee under VOES.
Filing and deadlines
VOES returns are filed bi-monthly through the Skatturinn portal, due by the fifth of the second month following each two-month period (e.g. Jan-Feb period due 5 April). There is no OSS overlap; Iceland is outside the EU VAT area.
Local Iceland filing frequency: Bi-monthly (default) / Monthly on application (large taxpayers) / Annual (very small).
Return due: One month and five days after period end (e.g. Jan-Feb period due 5 April).
Payment due: Same as return.
Iceland is in the EEA but outside the EU VAT area. Nonresident digital service providers register under the VOES (VAT on Electronic Services) regime once supplies to Icelandic consumers exceed ISK 2,000,000 in any 12-month period.
E-invoicing status in Iceland
Status
Mandatory (B2G)
Format
Peppol BIS 3.0 / TS-236 (Icelandic e-invoice standard)
Model
Post-audit
Scope
B2G; voluntary B2B
Go-live
2014-01-01
All Icelandic public-sector authorities must accept and process Peppol BIS 3.0 e-invoices. B2B e-invoicing is voluntary but widely adopted via Peppol.
Common mistakes US SaaS makes in Iceland
Skipping VOES because Iceland is small. ISK 2,000,000 is only ~USD 14,000, easy to cross from a handful of Icelandic subscribers.
Confusing VOES with EU OSS. Iceland is in the EEA but outside the EU VAT area. EU OSS does not cover Iceland; VOES is the only path.
Treating B2B and B2C the same. Reverse charge applies for VAT-registered Icelandic buyers; capture the buyer's VAT number to substantiate.
Forgetting the bi-monthly cadence. Six returns per year, due by the 5th of the second month after each two-month period. Easy to miss compared to quarterly filings.
Trusting Stripe Tax to handle Icelandic VAT. Stripe collects but you remain the supplier of record. VOES registration and Skatturinn filings are still your obligation.
Not sure if you've crossed the Iceland threshold?
Run a free exposure check across Iceland and the major EEA, EU and Nordic jurisdictions. Upload a CSV or sync Stripe; we'll show every country where you're already over the line.
The standard VAT rate in Iceland is 24%. Reduced rates apply at 11%, 0%.
Do US SaaS companies need to register for Icelandic VAT?
Yes, once supplies of electronic services to Icelandic consumers exceed ISK 2,000,000 (about USD 14,000) in any 12-month period. Register for the simplified VOES scheme through Skatturinn.
What is the Icelandic VAT registration threshold for nonresident sellers?
ISK 2,000,000 in 12-month supplies of electronic services to Icelandic consumers.
How often do I file VAT returns for Iceland sales?
VOES returns are filed bi-monthly through the Skatturinn portal. The data sources show the local Icelandic filing frequency as: Bi-monthly (default) / Monthly on application (large taxpayers) / Annual (very small).
Is e-invoicing mandatory in Iceland?
E-invoicing status in Iceland: Mandatory (B2G). Format: Peppol BIS 3.0 / TS-236 (Icelandic e-invoice standard).
Can I use the EU One Stop Shop (OSS) for Icelandic VAT?
No. Iceland is in the EEA but outside the EU VAT area. Icelandic VAT is filed under VOES directly with Skatturinn, not through any EU OSS scheme.