Financial Management Authority
Receivables Management
Kilometer fee on vehiclesis charged monthly based on an estimated average distance driven. Charges and any adjustments are processed each month.
VAT is paid according to the taxpayer’s settlement period.
The settlement period may be:
every two months
monthly
annually
The final payment date is the 5th day of the month.
Individual income tax is assessed after the tax return has been submitted and the assessment has been completed. The tax assessment notice is issued at the end of May.
The amount due is paid in several equal instalments during the year.
Due date: First day of each month
Final payment date: Last business day of each month
Capital income tax is collected in two ways:
as withholding tax when the income is paid
following a tax assessment
Import duties are paid during customs clearance when goods are imported into Iceland.
The due date and final payment date are the same day.
Fishing fees are assessed monthly based on catch records held by the Directorate of Fisheries.
The due date is the first day of each month for catches from two months earlier.
The final payment date is the 15th day of each month.
Iceland Revenue and Customs is responsible for VAT assessments.
When a credit balance is registered in the system, the refund is paid automatically.
If you do not receive your refund, your bank account details may be missing. You can register your bank account through My Pages on Ísland.is.
Tax and fee credits are refunded automatically each day.
If you do not receive your refund, your bank account details may be missing. You can register your bank account through My Pages on Ísland.is.
Service fees and other collections
Payment arrangements depend on the service provided and who is responsible for payment.
Payment may be made:
directly when the service is provided
by invoice
through centralised collection
Payment claims are sent to:
a parent or guardian if the student is under 18
the student if they are 18 or older
Collections between government institutions are processed daily.
Due dates and final payment dates depend on the arrangements between the institutions.
Application fees are generally paid before the application is processed.
The same arrangements apply throughout Iceland and are based on applicable legislation and fee schedules.
Payment is generally due when the application is submitted. The payment period is usually 5 to 10 days.
Invoices are paid daily.
Once an institution has approved an invoice, it is paid on the final payment date according to Treasury payment terms.
Municipal income tax is paid to municipalities daily.
Payments to farmers are generally made once a month, on the last business day of the month.
If the last business day falls on a Friday, payment is made the day before.
Church and parish fees are paid once a month.
Kilometer fee on vehicles is assessed monthly based on estimated average driving distance.
Assessments and adjustments are made each month.
Individual income tax is assessed after the tax return has been submitted. The tax assessment notice is issued at the end of May.
The amount due is paid in several equal instalments during the year.
Due date: First day of each month
Final payment date: Last business day of each month
Iceland Revenue and Customs is responsible for VAT assessments.
When a credit balance is registered in the system, the refund is paid automatically.
If you do not receive your refund, your bank account details may be missing. You can register your bank account through My Pages on Ísland.is.
Tax and fee credits are refunded automatically each day.
If you do not receive your refund, your bank account details may be missing. You can register your bank account through My Pages on Ísland.is.
Child benefits are paid in four instalments during the year.
Advance payments are made on:
1 February
1 May
When the annual assessment is completed in July, the advance payments are deducted from the assessed child benefits.
The remaining amount is paid on:
1 July
1 October
Salaries are paid on the first day of each month.
Payslips are sent to the recipient's digital mailbox on Ísland.is up to two days before the end of the month.
Grants for purchasing electric vehicles are paid daily.
The grant can be up to ISK 500,000.
Payment information is sent to the recipient's digital mailbox on Ísland.is. Information about the grant rules is also available on Ísland.is.