- Iceland issued guidelines clarifying VAT obligations for cruise ship operators on domestic voyages within Iceland.
- Domestic voyages are defined as cruises that embark and disembark passengers in Iceland without visiting foreign ports.
- The general VAT rate is 24%, but certain goods and services (passenger transport, accommodation, food) are taxed at a reduced rate of 11%.
- Cruise ship operators must register for VAT at least eight days before starting operations.
- Foreign operators without a permanent establishment in Iceland must register through an agent.
Source: kpmg.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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