Iceland - VAT on E-Books
Iceland’s Ministry of Finance and Economic Affairs has announced that it will reclassify electronic books as zero-rated for VAT purposes from January 1st 2019.
This can be enacted because Iceland is not part of the European Union and hence can decide their own VAT rates. E-books are currently subject to the reduced VAT rate of 11% in Iceland.
EU member states would not be permitted to take such an action and are required to charge the full standard VAT rate on e-books. In contrast, printed books containing exactly the same material are permitted to have a reduced or zero rate of VAT.
Should you require any VAT assistance in Iceland, or require any international VAT assistance, please contact us.