Guidelines on Value Added Tax (VAT) in the Tourism Industry
Service provider:
These guidelines aim to clarify the rules that apply to value added tax (VAT) on tourism and other travel-related services. Such services include, for example, accommodation, the sale of food and beverages, and passenger transport.
7 Registration in the VAT Register
Every taxable person must notify Iceland Revenue and Customs of their activities or business operations for registration in the VAT Register no later than eight days before the commencement of operations.
If a foreign company, such as a travel agency or passenger transport company, carries out taxable activities in Iceland without having a fixed place of business there, it must appoint a representative domiciled in Iceland to act on its behalf. This includes notifying Iceland Revenue and Customs of the activities, collecting VAT on the activities, and remitting it to the Treasury.
Iceland Revenue and Customs registers the party in the VAT Register, assigns a registration number (VAT number), and issues confirmation of the registration. Any changes to a company’s activities after registration must be reported no later than eight days after the change occurs.