Apply for Exemption from Import Duties on Materials Used in Business Activities
Businesses in certain industries may be eligible for an exemption or refund of customs duties and excise duties on raw materials and other inputs.
The Exemption Applies to Materials Used for
Manufacturing industrial products (excluding shipbuilding and ship repairs).
Producing horticultural products.
Film production and audio production.
Air transport operations.
General Conditions for the Exemption
The materials must:
be used exclusively for the relevant business activity.
fall within the scope of goods used in that activity.
be intended for a business that holds the required operating licences, such as an industrial or air operator licence, and is registered for VAT with Iceland Revenue and Customs.
Application Process – Step by Step
Complete and sign the [registration notification (PDF)] and send it to skjalabeidni@skatturinn.is. Briefly describe the business activity and the materials to be purchased. You do not need to include a copy of your operating licence unless Iceland Revenue and Customs specifically requests it.
If the applicant meets the conditions, Iceland Revenue and Customs issues a confirmation containing an authorisation number and exemption code. The confirmation is sent by email.
The confirmation allows the business to import the materials without paying the relevant duties or to apply for a refund afterwards.
How to Claim the Exemption During Customs Clearance
In field 14 of the import declaration, enter the exemption code together with the exemption reference (for example, UND T0029 for horticulture).
By doing so, the holder of the authorisation claims an exemption from duties on the goods concerned and agrees to comply with all instructions, restrictions and conditions that apply to the authorisation.
If You Are Unsure, Contact Iceland Revenue and Customs
Phone: 442-1000
Email: upplysingar@skatturinn.is
Service provider
Skatturinn - Iceland Revenue and Customs