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The short version
- Customs duty: Under the Iceland-China FTA, Iceland applies zero customs duty on all Chinese industrial products and seafood products, provided the goods meet rules of origin and proof of origin is supplied.
- Import VAT (virdisaukaskattur, VSK): 24% (reduced rates 11%).
- China FTA: Free Trade Agreement between Iceland and China, in force since 2014-07-01. Signed 15 April 2013 and in force from 1 July 2014. Iceland grants zero customs duty on all Chinese industrial products and seafood, subject to rules of origin and proof of origin to claim the preference. Since Iceland also abolished most other duties, the practical benefit is mainly certainty for dutiable categories; VAT still applies.
- Low-value parcels: No general low-value import threshold was found on official pages.
What do you pay to import from China into Iceland?
| Charge | Rate or rule |
|---|---|
| Customs duty | Under the Iceland-China FTA, Iceland applies zero customs duty on all Chinese industrial products and seafood products, provided the goods meet rules of origin and proof of origin is supplied. Import charges can also include excise or product duties (vorugjold) and VAT, depending on tariff classification and origin. Media and US government reports say Iceland abolished customs duties on nearly all goods except food from 2017. Look up your code |
| Import VAT (virdisaukaskattur, VSK) | 24%, reduced 11% (official rates) |
Does Iceland have a free trade agreement with China?
Signed 15 April 2013 and in force from 1 July 2014. Iceland grants zero customs duty on all Chinese industrial products and seafood, subject to rules of origin and proof of origin to claim the preference. Since Iceland also abolished most other duties, the practical benefit is mainly certainty for dutiable categories; VAT still applies. Source.
To use it you need proof of origin from the supplier and goods that meet the agreement's rules of origin. Ask for it before you pay.
Low-value parcels and online sales
No general low-value import threshold was found on official pages. Import charges (customs duties, excise duty and VAT) are calculated by Customs from the goods classification, are paid by the buyer before delivery, and the carrier or broker files the customs declaration. The only value exemption stated is for gifts from individuals abroad, up to ISK 13,500 (not alcohol or tobacco). Foreign companies that only supply goods from abroad to Icelandic recipients are generally not liable for Icelandic VAT on those sales, so VAT is collected on import. Official source.
Who do you register with in Iceland?
- Customs: Iceland Revenue and Customs (Skatturinn).
- Registration: EORI numbers are not used for customs clearance in Iceland. Importers submit customs declarations electronically (or use a licensed customs broker). A foreign company without a permanent establishment in Iceland that must register for Icelandic VAT has to appoint an Iceland-domiciled representative. Official page.
- Tax authority: Iceland Revenue and Customs (Skatturinn).
Which product rules apply?
Iceland is in the EEA, so EU single-market product legislation applies and products meeting harmonised EU technical requirements circulate freely in the EEA (CE marking route). Source.
How do goods from China arrive?
Sea freight usually arrives at Faxafloahafnir (Reykjavik area ports).
- Skatturinn offers an import charges calculator to estimate duties and taxes by product. (source)
- Gifts from individuals abroad are exempt from import charges up to ISK 13,500 (not alcohol or tobacco). (source)
How do you import from China to Iceland, step by step?
- Find your commodity codeClassify the product and check its duty in the official tariff. See what an HS code is.
- Check the China agreementIf there is one, ask the supplier for proof of origin.
- Agree the IncotermFOB, CIF or DDP decides who pays freight and duty. See Incoterms explained.
- Price the full landed costDuty, VAT, freight and fees per unit in the free landed cost calculator.
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Frequently asked questions
What is the import VAT rate in Iceland?
The standard rate is 24%.
Does Iceland have a trade deal with China?
Signed 15 April 2013 and in force from 1 July 2014. Iceland grants zero customs duty on all Chinese industrial products and seafood, subject to rules of origin and proof of origin to claim the preference. Since Iceland also abolished most other duties, the practical benefit is mainly certainty for dutiable categories; VAT still applies.
Is there a low-value limit in Iceland?
No general low-value import threshold was found on official pages.
Rules as of October 16, 2026, from official sources. General information, not customs or tax advice. SuanSupply is not affiliated with any government agency.