VAT mark in Iceland is VSK

• Standard tax rate in Iceland is 25.5%

• with another tax rate:7%

Scope of Application for Tax Rate 7%:

• Hotel accommodation, food and beverages (excluding alcoholic beverages)

• Newspapers, magazines, periodicals, books

• CDs, tapes, or other media

• Radio and TV patent royalties

• Hot water, electricity and fuel used for housing or swimming pool

Tax Refund Scope:

• Travel expenses (hotel accommodation, catering, transportation, communications)

• Construction costs of exhibition stand

• Real estate services expenses (leasing, construction, tearing down and repairing of house, intermediary services, employment of auctioneers, architects, lawyers, surveyors, engineers, audit services, property assessments, surveys)

• Development and exploration costs (oil, natural gas, minerals)

• Conditions surveys and research expenses of land and sea-bed (earthquakes, geology, geomagnetism)

• Related expenses of overseas offices, representative offices and liaison offices (house rental, utilities, office furniture, decoration, etc.)

• DROP-SHIPPING (purchasing, transportation and manual operation expenses that produced by purchasing goods from one EU country and delivering to another)

• Import tax

• Subcontract

Non-Tax Refund Scope:

• Food and Beverage

• Gifts

• Housing expenses of company staff

Minimum Tax Refund Amount:

• Quarterly: 49100 Iceland Krona (ISK)

• Annual: 9600 Iceland Krona (ISK)

Valid Period of Tax Refund:

• Invoice of the current year (subjecting to the date of invoice) needs to submit tax refund application before June 30th the next year; For example: if the date of invoice is December 30th, 2010, this invoice must be submitted to the Icelandic tax bureau before December 31st, 2015 for tax refund application.

Documents Required for Tax Refund:

• Certificate of Authorization (handled by our company and your company just needs to sign and seal)

• Tax Registration Certificate (handled by our company, signed and sealed by your company )

• Copy of Tax Registration Certificate (with official seal)

• The original invoice (electronic version of the invoice is also acceptable)

Processing Period:

• The processing period published by Icelandic tax bureau is 6 months. Usually Chinese companies can receive the tax refund payment within 6 months after submitting tax refund application.