Iceland Budget Seeks Surplus with VAT Subsidy Cuts by 2027

• Iceland’s 2027 budget proposal targets a balanced budget with a surplus by 2027.
• The government wants to reduce two VAT-related tax subsidies to make the tax system more even across sectors.
• VAT on geothermal lagoons, steam baths, and similar facilities would rise from 11% to 24%.
• The VAT refund for labour costs in residential construction, renovation, and maintenance would be cut from 35% to 20%.

Source: regfollower.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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