- Special exemptions for buyers and importers of electric and hydrogen vehicles, bicycles, and other environmentally friendly vehicles will expire at the end of the year.
- These exemptions allow for a reduction in value-added tax (VAT) on imports and a maximum amount of VAT exemption for the first sale of these vehicles.
- Questions have arisen regarding the treatment of VAT for purchases made before the end of the year but not delivered until the new year.
- Payment within specified limits before the end of the year is not subject to VAT.
- VAT will be imposed on imports of vehicles from January 1, 2024.
- Businesses involved in VAT-liable activities, such as vehicle sales or rentals, can consider VAT paid on imports as input VAT.
- The imposition of VAT on imports does not affect the overall cost of the vehicle for the seller, even if the buyer has received a VAT reduction on the purchase price.
- Other importers of environmentally friendly vehicles will have to bear the VAT imposed on imports after the end of the year.
Source: skatturinn.is
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
