Value added tax (VAT)
- VAT is a general consumption tax levied on all domestic transactions. It is also levied on imported goods and services.
- General excise duty is a charge levied on goods imported or manufactured domestically. All excise duty on food, except sugar and sweets, has been abolished.
- A special alcohol levy must be paid on consumable alcoholic beverages imported to or manufactured in Iceland, regardless of whether it is for sale or personal use.
- Excise duty is levied on imported vehicles according to their weight.