What is Tax Free?

When you shop Tax Free, it means that you are getting the VAT (Value Added Tax) deducted from the purchase price. The tax is used for social purposes in Iceland and as a foreign resident you can claim this tax back and hence, shop Tax Free.

The VAT rate in Iceland is 24,5% or 14% on special goods. It means that all prices include a VAT rate which hence corresponds to 19,68% or 12,3% of the total selling price. Minimum amount when shopping Tax-free in Iceland is kr.4.000. You can only use it for goods you will take with you out of the country. Services are hence not included, nor does food which you consume during your stay.

Shopping Tax Free in Iceland is an easy and convenient way to put more money in your wallet!

Three easy steps:

1. Shopping

Make your purchase where you see the Iceland Refund sign and simply ask for a Tax Free form at the register.

2. Customs verification

If the refund amount on a single Tax Free form exceeds ISK 5.000.- you have to show the goods to customs when leaving the country and verify export with a customs stamp.

This does not apply for woollen goods

3. Get your Refund

Credit card Refund

Insert your credit card number on the Tax Free form and mail it in an Iceland Refund envelope for a direct refund to your credit card. Quick and easy!

Cash Refund

Have the cheque refunded in cash by one of our agents where you leave Iceland. Money right away!

Prepaid Refund

Get your refund prepaid, before you leave the country, downtown Reykjavík or at the malls. Then simply put your forms in the mailbox departure hall in Keflavik airport or mail it from abroad in an Iceland Refund envelope.