The refund of the return fee for vehicles has become automatic, but 30,000 ISK (from January 1, 2023) is paid as a return fee for each car that goes for recycling. Vehicles registered before 1980 are not subject to reimbursement because a processing fee has never been paid on them.
The payment takes place through the tax system, so Fjársyslan takes care of the payment if there is information about the bank account of the owner of the vehicle.
If the person has unpaid claims with the treasury collector, the return fee is offset against them. Notification of this measure will be sent to your inbox on island.is.
How do I dispose of vehicles?
Select the Apply button
Select vehicle to dispose of
Select recipient
Payment shall be received within two days after delivery of the vehicle
On vehicle disposal
A deregistered vehicle may be removed if it is confirmed that it has been returned for processing. This applies to all automobiles, whether the owner is entitled to a deposit or not.
Find a reception centre near you
Once you have selected a vehicle for disposal, you can take it to one of the following reception centres in the capital area and Selfoss.
If you are out of those areas, you must contact the relevant local authority regarding disposal
Terra, Móttökustöðin Gáma (Akranes)
Höfðasel 16, 300 Akranes
+354 535 2500
Rangárþing ytra (Rangárþing ytra, Hella)
Suðurlandsvegi 1-3, 850 Rangárþing ytra, Hella
+354 488 7000
Frequent questions about vehicle recycling
Service provider
The Financial Management AuthorityRelated organization
The Icelandic Transport AuthorityRelated organization
Icelandic Recycling Fund