What Is the Tourist Tax in Iceland? Understanding VAT Charges in 2023
Learn about Iceland’s tourist tax included in VAT rates—11% on hotel stays and 24% on other goods and services as of 2023.
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The tourist tax in Iceland is not charged as a separate or additional fee; instead, it is included in the Value Added Tax (VAT) rates applied to goods and services. As of 2023, Iceland's VAT rates are 11% for certain goods and services relevant to tourists, such as hotel accommodations, and 24% for most other goods and services. There's no specific 'tourist tax', but these VAT rates indirectly affect the cost of tourism-related expenses.
FAQs & Answers
- Is there a separate tourist tax in Iceland? No, Iceland does not have a separate tourist tax. Instead, tourism expenses are subject to the country’s Value Added Tax (VAT) rates.
- What VAT rates apply to tourists in Iceland? As of 2023, Iceland applies an 11% VAT rate to certain goods and services relevant to tourists, such as hotel accommodations, and a 24% VAT rate to most other goods and services.
- How does VAT affect the total cost of travel in Iceland? VAT is included in prices for goods and services, so tourists indirectly pay this tax as part of their overall expenses for accommodation, dining, and other purchases.