Vehicles
Customs clearance of imported vehicles is different for each of the following situations:
- A new or used vehicle bought into the country
- A vehicle with an Icelandic registration number imported back into the country (Icelandic travelers)
- A vehicle with a foreign registration number imported to the country along with household effects
- A vehicle with a foreign registration number temporarily imported into the country (foreign travelers)
A New or Used Vehicle Bought into the Country
The condition for the customs clearance of a vehicle subject to mandatory registration is that the vehicle has been preregistered with the Icelandic Transport Authority. The importer is therefore obliged to get in contact with the Transport Authority before a customs clearance of a vehicle subject to mandatory registration is requested. Information on the registration of vehicles can be found on the Icelandic Transport Authority's (ITA) website. Import charges levied on vehicles are paid in ratio with customs value (purchase price, transportation charges and transportation insurance) of the vehicle. The various importation charges are: excise duty, processing charge for the car battery and tyres that come with the vehicle and 24% value added tax.
Excise duties do not have to be paid of some vehicles. In such instances only the 24% value added tax has to be paid as well as the processing charge, unless that is specifically exempted.
Certain parties can apply for the lowering of the excise duties, e.g. driving instructors, taxi drivers, rescue services and others.
Customs Classification
Vehicles are classified in chapter 87 of the Customs Tariff. In some instances they are classified according to weight and in others according to engine size. When relevant, vehicles should also be classified according to registered carbon dioxide emission. It is important to become familiarized with the customs classification of vehicles and get an expert's opinion if needed. You can get further information by sending us an enquiry.
