Iceland Approves Bill Including VAT, and Excise and Commodity Tax Changes Introduced in the 2015 Budget

On 16 December 2014, Iceland's parliament approved a bill including changes introduced the country's 2015 Budget concerning value added tax and, commodity and excise taxes. The key tax changes include:

VAT Rate Changes

• The standard rate of VAT is reduced from 25.5% to 24%
• The reduced rate of VAT is increased from 7% to 11%

VAT Exemptions Changes

The VAT exemption for passenger transportation for recreational purposes and services provided by travel agents and travel organizers will e…