Explore the requirements and rules that apply to electronically supplied services in Iceland.
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?
If there is not a requirement to register B2B , is there either
None of the listed
If there is not a requirement to register B2C , is there either
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?
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
What is the applicable registration threshold, in local currency, for electronically supplied services by a non-resident vendor (if any)?
If there is a registration threshold, what is the periodical limit (e.g. annual, quarterly, monthly etc.)?
If registration is required, is it a simplified registration (collection of output tax only), or a standard registration (collection, input tax credits, etc.)?
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)
Does the requirement to register apply only to B2C transactions, or to both B2C and B2B transactions?
Do the requirements apply to all services provided electronically?
Do the requirements apply to digital streaming of content (audio, image, video)?
Do the requirements apply to digitally supplied software and apps,
Do the requirements apply to cloud storage?
Do the requirements apply to internet based voice communication services e.g. VoIP?
Do the requirements apply to telecom services?
Do the requirements apply to digital streaming of content? [YES/NO]
Do the requirements apply to broadcasting services?
Do the requirements apply to any services NOT mentioned in the previous sections? If so which ones?
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