Iceland’s customs register is based on the Harmonized Commodity Description and Coding System (HS).  Iceland eliminated tariffs on consumer goods including clothing and electronics in 2016 and 2017.  Goods imported to Iceland are subject to Value Added Tax (VAT).  The standard VAT rate is 24 percent, with a reduced rate of 11 percent for foods, books, magazines, and other necessities.  Electric, hybrid, and hydrogen cars are exempt from VAT through 2023.  It is currently unknown if these exemptions will continue into 2024.

On May 1, 2018, an agreement came into force between Iceland and the EU concerning reduced or eliminated tariffs, and increased tariff quotas on unprocessed agricultural products.  As part of this agreement, Iceland dropped tariffs of more than 340 categories of unprocessed agricultural products originating in the EU and reduced tariffs of more than 20 categories.  This left U.S. agricultural products exported to Iceland up to 30 percent more expensive than products from the EU, as tariffs for many agricultural products from the United States remain between 20-30 percent.  The Customs Register can be found on the Iceland Revenue and Customs website.

To look up duties and tariffs use, use the Customs Info Database tariff look-up tool, available on trade.gov (free registration required), to estimate duties and taxes.