Kilometer fee for electric, hydrogen and plug-in hybrid cars

A kilometer fee must be paid for driving electric cars, hydrogen cars, and plug-in hybrids (cars that run on both electricity and gasoline). The fee does not apply to hybrid vehicles that do not connect to an electrical outlet.

The fee applies to passenger cars and vans.

Fee amount

• 6 ISK per kilometer for electric cars and hydrogen cars.

• 2 ISK per kilometer for plug-in hybrids.

Logging the odometer reading

The fee is very similar to how utility bills for electricity and hot water are charged. You log the odometer reading regularly, based on that a plan is made for your average driving and billed according to it until you log again. With each log, a new estimate of average driving is created and at the same time your account is settled for the last period.

The reading can be logged:

• on the Ísland.is app

• on My pages on Ísland.is

• at certified inspection sites during a regular inspections

• by making an appointment at an inspection station, Aðalskoðun and Frumherji offer such a service.

Routine readings

The odometer reading should be logged into the system at least once a year.

You may log a reading every 30 days.

Keeping a consistent log ensures that you pay based on average kilometers traveled, which is calculated based on your two most recent odometer readings.

Consistency reduces the likelihood of

• overpaying at the end of each month.

• receiving an underpayment penalty at your next odometer reading.

A reading that is logged on the last day of the month takes effect the following day.

Amending an incorrect logging entry

If you enter the wrong number, you can re-enter on the same day, and the second number will apply. At midnight, entries will close for the next 30 days.

If you need to correct an incorrect registration or apply for registration on behalf of the owner of another vehicle, apply here:

Payment

The kilometer fee is to be paid monthly. A notice will be sent to the payer's online banking profile. The vehicle owner is responsible for paying the fee, except when the owner is a property- or finance lease, in which case the lessee is the payer.

Payment is due on the first business day of each month, and the final due date is 14 days later.

The first due date is February 1st. 2024.

Amount paid

The kilometer fee is based on the average distance driven. The average driving distance is calculated based on your two most recent odometer readings from the current owner.

You can estimate the cost based on the average distances driven.

If two odometer readings are not available from the current owner, the fee will be based on the following estimate of average driving:

The Directorate of Internal Revenue's average driving estimate

Correction of estimate or kilometer fee charge

If the estimate or charge of the kilometer fee is based on incorrect information a correction request may be submitted using the following form.

Settling up

When you log an odometer reading, your account is settled. This settlement constitutes the difference between what you paid based on the estimate and what you should have paid based on actual driving.

If you have:

• overpaid, you will receive a refund, and the amount is subject to credit interest. If you owe the treasury, the repayment will be credited toward this debt, regardless of whether the debt was incurred in relation to the kilometer fee or any other fees.

• underpaid, you will receive an invoice for the difference with an additional 2.5% surcharge on an annual basis.

Initial reading

Logging the odometer reading by January 20th. 2024 was mandatory.

If this was not completed within the given time frame

• a penalty fee of 20.000 ISK was charged after January 30th.

• the payer received a notification of an appointment to appear at a certified inspection site after January 30th, where the odometer reading will be logged.