- Iceland’s Tax Authority has issued guidelines on VAT rules for cruise ship operators during domestic voyages.
- VAT applies to all domestic transactions and imports of goods and services unless exempt.
- Foreign operators must register with Icelandic Revenue and Customs and appoint an Iceland-based agent if they lack a permanent establishment.
- Cruise ship operators are subject to VAT on passenger transport, accommodation, food and beverages, and onboard services.
- Operators must also pay VAT on the resale of travel-related services while docked.
- Registration for VAT is mandatory for operators meeting the requirements, with joint liability for compliance and payment.
- Registered operators can charge and remit VAT and deduct input VAT on related purchases.
Source: vatabout.com
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.
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