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Request an Iceland VAT Registration in Kintsugi

Updated 8 days ago

Submit a registration request so Kintsugi can register your business for Iceland VAT and take over your bi-monthly declarations. Use this when Kintsugi shows Iceland exposure, or when you know you are about to cross ISK 2,000,000.

Time required: about 15 minutes to submit

You will need: Iceland enabled on your account, your legal entity details, and the items in Documents Required for Iceland VAT Registration Reference

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Before You Start

  • Registration and filing support covers businesses without a physical presence in Iceland, which Kintsugi handles through the VOES scheme. If you have an office, staff, third-party warehousing, or a server in Iceland, contact us before submitting, because that situation requires the Standard scheme and is handled outside Kintsugi.

  • VOES needs no Iceland-resident representative and no Icelandic bank account. If someone has told you otherwise, they were describing the Standard scheme.

  • VOES covers consumer sales of electronic services. It will not cover physical goods, and it will not change how your business sales are treated.

  • Registration is a country-level action. There are no regional Iceland registrations to choose between.

  • If you are already registered in Iceland, import the existing registration instead of submitting a new one.

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Steps

  1. Open your Iceland exposure. Navigate to your nexus view and select Iceland.

  2. Select Register. If Iceland is not yet enabled for your organization, the app shows Talk to Sales instead. Select it, and our team enables Iceland once your plan covers it.

  3. Confirm the registration scheme. Kintsugi submits a VOES registration, the simplified scheme for non-resident sellers of electronic services.

  4. Enter your entity details. Provide your legal name, registered address, and contact details exactly as they appear on your incorporation documents.

  5. Provide your home-country tax identifier. VOES asks for your foreign VAT or tax registration number.

  6. Describe your electronic services. VOES asks what you sell, in a sentence or two.

  7. Submit the request. Kintsugi handles the VOES portal steps from here.

For the generic registration request flow shared across all countries, see How to Submit a Registration Request.

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How To Confirm It Worked

Your Iceland registration appears in your registrations list with a submitted status, and the status advances as the request progresses with Skatturinn. When it completes, your record shows an Iceland VAT number starting with IS, a bi-monthly filing frequency, and an effective registration date. Your first declaration period runs from that date to the end of the current two-month period.

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Things To Know

  • VOES processing typically takes one to two weeks.

  • Iceland filing is bi-monthly only. There is no monthly, quarterly, or annual option under VOES.

  • Once you are registered, you charge 24% on consumer sales. Business sales stay under the reverse charge, so do not start adding VAT to invoices for Icelandic businesses.

  • You file every period regardless of turnover, including nil declarations.

  • Kintsugi prepares and files the declaration. Remitting the payment stays with you.

  • Declarations and payments are in ISK, converted at the Central Bank of Iceland official rate on the due date.

  • VOES is a pay-only registration. There is no input VAT deduction under it.

  • Support covers the B2B SaaS and B2C SaaS categories. Registering does not extend Kintsugi's calculation to goods or other categories.

  • You cannot charge or show Iceland VAT on invoices before your effective registration date.

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FAQs

Q: How long does an Iceland registration take?

A: A VOES registration is typically issued within one to two weeks of a complete application. Kintsugi shares the expected timeline when your request is submitted.

Q: Do I need an Iceland-resident representative?

A: Not for VOES. A representative is required only under the Standard scheme, for a non-resident without a permanent establishment in Iceland.

Q: Do I need an Icelandic bank account?

A: No. VOES accepts international transfer, so you settle from your existing account.

Q: Can I register before I cross the threshold?

A: Yes. There is no input VAT recovery to gain from registering early under VOES, so the usual reason to do it is a clean treatment on consumer sales ahead of a breach you can see coming.

Q: What happens to sales I made before registering?

A: Sales before your effective registration date are not covered by the new registration, and Iceland can assess VAT on sales made after your threshold breach. Raise them with us so they can be assessed separately.

Q: I have a permanent establishment in Iceland. Can Kintsugi still register me?

A: Not today. A permanent establishment means the Standard scheme, which brings a representative and bank account requirement outside Kintsugi's current Iceland workflow. Contact us and we will talk through the options.

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Need Help?

For further concerns, we're always here to help. If you can't find the answer you're looking for, reach out to us using the chat in the bottom right corner of your screen.

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