Importing a vehicle with Icelandic registration plates

A vehicle with Icelandic licence plates may be brought back to Iceland without paying import charges (excise duty, value added tax, and recycling fee).

Exceptions

Import charges must be paid if:

• the charges were refunded when the vehicle was exported

• work was carried out on the vehicle abroad that increases its value

• the vehicle was refurbished or restored

• additional equipment has been installed, such as new wheels, interior fittings, or similar items.

Vehicle registration

There is no need to apply for vehicle registration unless the vehicle was deregistered when it left the country.

Customs inspection

Upon arrival in Iceland, the traveller, the vehicle, and any luggage must undergo a standard customs inspection.

Goods in the vehicle

Import charges must be paid on any goods in the vehicle that exceed the traveller’s duty-free allowance.

See further information on the maximum duty-free allowance for travellers arriving in Iceland.

Kilometer fee

You do not have to pay a kilometer fee for driving outside Iceland.

The owner or operator of the vehicle must:

• record the odometer reading when leaving the country

• record the odometer reading upon returning to Iceland

• apply for exemption from the kilometer fee for driving abroad after returning to Iceland and present confirmation of the temporary export

See further information on the rules on kilometer fee for vehicles.