Tax-Free Shopping

VAT (Value Added Tax) on most goods in Iceland is 25.5%. A VAT refund when you leave allows you to recover taxes you originally paid when shopping. To qualify, a minimum purchase of 4,000 ISK (includes VAT) must be made in a store displaying a "Tax Free" shopping or "Global Refund Tax" sign or flag, and you must ask for a Tax Free form at the register. If the refund amount on a single Tax Free form exceeds 5000 ISK, you have to show the goods to customs when leaving the country and verify export with a customs stamp. However, this policy does not apply for woolen goods. All Tax Free refunds can be obtained at the Airport, Tourist Information Centers and aboard all cruise ships.