Import Duty Charges
The general rule is that import charges are to be paid when importing goods to the country in accordance with the customs tariff that has legal validity in Iceland. Included in the import charges are duties, excise duties and value added tax as well as various other charges that may be added when a good is imported.
In addition to the exceptions listed below, these are also worth mentioning:
The following goods are exempted from import charges if an importer can provide satisfactory evidence in support of exemption:
- Specific goods imported for embassies, consulates, diplomats and consuls of foreign states in accordance with Article 36 of the Vienna Convention on Diplomatic Relations, as seen in Appendix I with Act no. 16/1971 on Iceland's membership to the Convention on Diplomatic Relations.
- Specific goods imported for honorary consuls of foreign states and consulates in accordance with Article 50 of the Vienna Convention on Consular Relations, see Article 62 of the Convention; see also Appendix I with Act no. 4/1978 on Iceland's membership of the International Convention on Consular Relations.
- Specific goods that the military power of the United States of America as well as their personnel and their kindred import to the country in accordance with Article 8 of the Appendix on the Legal Status of the USA's militia and their personnel.
- Materials and equipment imported to the country to prevent avalanches as seen in Article 15 of Act no. 49/1997 on Defences against Avalanches and Landslides.
- Goods exempted from import charges according to clauses of other international conventions and treaties that Iceland is a member of.
Exemptions
The following goods are exempted from import charges and/or value added tax if all necessary conditions are fulfilled:
In most cases, you have to file an application for exemption for import charges to be suspended.
- Travellers luggage
- Household effects
- Gifts
- Resent goods
- Resent empty packaging
- Heirlooms
- Insignia and awards
- Marketing and product development
- Equipment used for scientific purposes
- Rescue equipment and gear
- Some goods according to clauses of free trade- or international conventions
- Temporary importation
- Vehicles, motorcycles and trailers registered abroad
Some goods are exempted from value added tax upon importation even though other charges must be paid. The importer may be eligible for lowering or suspension of excise duties of vehicles in certain instances if all necessary conditions are fulfilled upon importation.
Further information on the lowering or suspension of excise duties is available on the Icelandic website.
