Iceland

Iceland

Explore the requirements and rules that apply to electronically supplied services in Iceland.

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Registration requirements and timing

For B2B; Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2B customer located in your jurisdiction required to register for and charge VAT/GST?

No, reverse charge applies

 

For B2C; Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2C customer located in your jurisdiction required to register for and charge VAT/GST?

Yes

 

If there is not a requirement to register B2B , is there either

  • a scheduled introduction of such a requirement,
  • a draft legislative proposal to introduce such a requirement, 
  • a general proposal or review by the authorities of whether to introduce such a requirement. If yes, please specify

None of the listed

 

If there is not a requirement to register B2C , is there either

  • a scheduled introduction of such a requirement,
  • a draft legislative proposal to introduce such a requirement, 
  • a general proposal or review by the authorities of whether to introduce such a requirement. If yes, please specify

There is a requirement in place

 

If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?

01/11/2011

 

Where the services are supplied through an interface or a portal such as a marketplace for applications (e.g. Google Play or the App Store), is the originator of the content or the interface/portal responsible for registering for and remitting the VAT/GST on those services?

The interface/portal would be responsible if it is invoicing and charging for the sale

 

Thresholds, specific registration and other compliance requirements

What is the applicable registration threshold, in local currency, for electronically supplied services by a non-resident vendor (if any)?

2,000,000

 

If there is a registration threshold, what is the periodical limit (e.g. annual, quarterly, monthly etc.)?

Annual

 

If registration is required, is it a simplified registration (collection of output tax only), or a standard registration (collection, input tax credits, etc.)?

Standard

Non-resident vendors must register via a VAT representative. KPMG Iceland provides such services

 

Is a non-resident vendor, registered for VAT/GST purposes because of cross border sales of services, required to issue a VAT/GST compliant invoice? (complying with the VAT/GST invoicing requirements in the country of consumption, rather than supplier’s country)

Yes

Scope of what is taxed

Does the requirement to register apply only to B2C transactions, or to both B2C and B2B transactions?

B2C

 

Do the requirements apply to all services provided electronically?

Yes

 

Do the requirements apply to digital streaming of content (audio, image, video)?

Yes

 

Do the requirements apply to digitally supplied software and apps,

Yes

 

Do the requirements apply to cloud storage?

Yes

 

Do the requirements apply to internet based voice communication services e.g. VoIP?

Yes

 

Do the requirements apply to telecom services?

Yes

 

Do the requirements apply to digital streaming of content? [YES/NO]

Yes

 

Do the requirements apply to broadcasting services?

Yes

 

Do the requirements apply to any services NOT mentioned in the previous sections? If so which ones?

Not specified

Additional Comments

No further comments
 

For further information please contact

Sigrún Rósa Björnsdóttir
Manager
T +3545456271
E sigrunbjornsdottir@kpmg.is
 

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