Where is Iceland?
Iceland is a North Atlantic island and the westernmost country in Europe, midway between North America and mainland Europe.
It lies about 800 km northwest of Scotland and 970 km west of Norway, and its northern coast is just below the Arctic Circle. Iceland is the same distance from London as Athens. The distance from New York to Iceland is the same as from New York to Los Angeles. Reykjavík is the world's northernmost capital city
Value Added Tax (VAT) is refunded on all purchases exceeding 6000 ISK upon request, subject to the conditions of regulations. VAT is included in the marked-up price, and is collected in two brackets, 11% and 24%, depending on the goods and services purchased. The VAT refund will therefore be 20% (19.35%) for the higher bracket or 10% (9.91%), for the lower bracket. Maximum refund is 15% of the retail price.
To be eligible for refund all of the following conditions must be met:
- The buyer must have a permanent address outside of Iceland
- The buyer will bring the goods out of the country within three months of the purchase.
- The purchase price of the goods with VAT is a minimum of ISK 6,000.
- The articles along with required documents are produced at departure.
On departure from the country, the buyer shall produce the articles along with a refund cheque to the refund service provider, who will purchase it subject to the fulfilment of all the conditions of this regulation. The refund provider may not purchase the cheque unless the buyer supplies sufficient proof that s/he is a permanent resident abroad. If the amount of the refund exceeds ISK 5,000, the customs authorities shall confirm the export of the goods with a signature on the cheque.
Further information: www.tollur.is/english/individuals/customs/traveling-to-iceland/tax-free-vat-refund/
When travelling in Iceland you should bring along lightweight woollens, a sweater or cardigan, a rainproof (weatherproof) coat, and sturdy walking shoes. Travellers who are camping or heading into the interior will need warm underwear and socks, rubber boots, and a warm sleeping bag.