- Iceland’s VOES is a simplified VAT registration scheme for non-resident businesses supplying digital services to Icelandic consumers once B2C sales exceed ISK 2 million over 12 months.
- Digital services are generally taxed where the buyer is resident/established; the rules mainly affect foreign suppliers of downloads, streaming, apps, e-books, games, music, films, and TV content.
- Standard VAT rate on taxable digital services is 24%; e-books and e-publications are taxed at the reduced 11% rate.
- VOES is primarily for B2C supplies; if the customer is an Icelandic VAT-registered business that can self-account for VAT, foreign suppliers usually do not need VOES registration.
- Registered businesses must file bi-monthly returns and pay within one month and five days after each period; input VAT cannot be deducted under VOES, and the scheme is unavailable if the supplier has a relevant Icelandic permanent establishment.
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.
