{
  "$comment": "Machine-readable companion to https://valem.run/calculators/iceland/vat. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/iceland/vat",
  "dataUrl": "https://valem.run/calculators/iceland/vat.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "Iceland vsk (vat) model by Valem (https://valem.run/calculators/iceland/vat), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/iceland/vat/verify",
  "country": "iceland",
  "countryName": "Iceland",
  "formula": "vat",
  "formulaName": "VSK (VAT)",
  "title": "VSK-reiknivél 2026 — Iceland VAT calculator (24% / 11%)",
  "answer": "Icelandic VAT has two rates: 24% on everything taxable unless the law says otherwise, and 11% on food, accommodation, books, newspapers, heating and some transport. You must register once taxable sales exceed ISK 2,000,000 in any twelve-month period.",
  "lang": "en",
  "currency": "ISK",
  "taxYear": "2026",
  "verification": {
    "claim": "internal-consistency",
    "statement": "The Valem engine reproduces this model's stated formula through 6 self-test cases (below, and re-runnable against the spec). That asserts internal consistency, NOT that the formula matches current law — the cited sources are the evidence for that, and carry the date each was last checked.",
    "selfTestCases": 6,
    "ratesAreIllustrative": false,
    "sourcesCheckedOn": "2026-10-12"
  },
  "sources": [
    {
      "label": "Skatturinn — Skattskylda og skattprósentur: the two VAT rates, 24% and 11%, and the 11% categories (lög nr. 50/1988)",
      "url": "https://www.skatturinn.is/atvinnurekstur/virdisaukaskattur/skattskylda-og-skattprosentur/nr/100",
      "checked": "2026-10-12"
    },
    {
      "label": "Skatturinn — Skráning á VSK-skrá: registration once taxable sales exceed ISK 2,000,000 in any twelve-month period",
      "url": "https://www.skatturinn.is/atvinnurekstur/virdisaukaskattur/skraning-a-vsk-skra/nr/101",
      "checked": "2026-10-12"
    }
  ],
  "terminalOutput": "mustRegister",
  "headlineOutput": "vatAmount",
  "inputs": [
    {
      "name": "amount",
      "type": "number",
      "label": "Amount (ISK)",
      "minimum": 0
    },
    {
      "name": "direction",
      "type": "string",
      "label": "Direction",
      "enum": [
        "add",
        "remove"
      ]
    },
    {
      "name": "category",
      "type": "string",
      "label": "What is being supplied",
      "enum": [
        "standard",
        "reduced"
      ]
    },
    {
      "name": "reverseCharge",
      "type": "boolean",
      "label": "No VAT charged by you: an export, or the customer accounts for the tax"
    },
    {
      "name": "turnover12Months",
      "type": "number",
      "label": "Taxable sales in the last twelve months (ISK)",
      "minimum": 0
    }
  ],
  "outputs": [
    {
      "name": "rate",
      "type": "number",
      "label": "Rate for the category",
      "formula": "category = 'reduced' ? $const.reducedRate : $const.standardRate"
    },
    {
      "name": "effectiveRate",
      "type": "number",
      "label": "Rate applied",
      "formula": "reverseCharge ? 0 : rate"
    },
    {
      "name": "netAmount",
      "type": "number",
      "label": "Net",
      "format": "currency",
      "formula": "direction = 'remove' ? $round(amount / (1 + effectiveRate), 2) : $round(amount, 2)"
    },
    {
      "name": "vatAmount",
      "type": "number",
      "label": "VAT",
      "format": "currency",
      "formula": "$round(netAmount * effectiveRate, 2)"
    },
    {
      "name": "grossAmount",
      "type": "number",
      "label": "Gross",
      "format": "currency",
      "formula": "$round(netAmount + vatAmount, 2)"
    },
    {
      "name": "mustRegister",
      "type": "boolean",
      "label": "Must register for VAT",
      "formula": "turnover12Months > $const.registrationThreshold"
    }
  ],
  "testCases": [
    {
      "description": "S1 10,000 ISK net at the general rate",
      "given": {
        "amount": 10000,
        "direction": "add",
        "category": "standard",
        "reverseCharge": false,
        "turnover12Months": 0
      },
      "expect": {
        "vatAmount": 2400,
        "grossAmount": 12400,
        "netAmount": 10000
      }
    },
    {
      "description": "S2 12,400 ISK gross back to net at the general rate",
      "given": {
        "amount": 12400,
        "direction": "remove",
        "category": "standard",
        "reverseCharge": false,
        "turnover12Months": 0
      },
      "expect": {
        "netAmount": 10000,
        "vatAmount": 2400
      }
    },
    {
      "description": "S3 food at 11%",
      "given": {
        "amount": 10000,
        "direction": "add",
        "category": "reduced",
        "reverseCharge": false,
        "turnover12Months": 0
      },
      "expect": {
        "vatAmount": 1100,
        "grossAmount": 11100
      }
    },
    {
      "description": "S4 Skatturinn’s share of a VAT-inclusive price: 19.35% at 24%",
      "given": {
        "amount": 10000,
        "direction": "remove",
        "category": "standard",
        "reverseCharge": false,
        "turnover12Months": 0
      },
      "expect": {
        "netAmount": 8064.52,
        "vatAmount": 1935.48
      }
    },
    {
      "description": "S5 exactly ISK 2,000,000 does not yet require registration",
      "given": {
        "amount": 0,
        "direction": "add",
        "category": "standard",
        "reverseCharge": false,
        "turnover12Months": 2000000
      },
      "expect": {
        "mustRegister": false
      }
    },
    {
      "description": "S6 above ISK 2,000,000 it does",
      "given": {
        "amount": 0,
        "direction": "add",
        "category": "standard",
        "reverseCharge": false,
        "turnover12Months": 2000001
      },
      "expect": {
        "mustRegister": true
      }
    }
  ],
  "spec": {
    "id": "vat-iceland",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "amount": {
          "type": "number",
          "minimum": 0
        },
        "direction": {
          "type": "string",
          "enum": [
            "add",
            "remove"
          ]
        },
        "category": {
          "type": "string",
          "enum": [
            "standard",
            "reduced"
          ]
        },
        "reverseCharge": {
          "type": "boolean"
        },
        "turnover12Months": {
          "type": "number",
          "minimum": 0
        },
        "rate": {
          "type": "number",
          "readOnly": true
        },
        "effectiveRate": {
          "type": "number",
          "readOnly": true
        },
        "netAmount": {
          "type": "number",
          "readOnly": true
        },
        "vatAmount": {
          "type": "number",
          "readOnly": true
        },
        "grossAmount": {
          "type": "number",
          "readOnly": true
        },
        "mustRegister": {
          "type": "boolean",
          "readOnly": true
        }
      }
    },
    "constants": {
      "standardRate": 0.24,
      "reducedRate": 0.11,
      "registrationThreshold": 2000000
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{ 'amount': 10000, 'direction': 'add', 'category': 'standard', 'reverseCharge': false, 'turnover12Months': 0 }"
      }
    ],
    "derivations": [
      {
        "path": "$.rate",
        "expr": "category = 'reduced' ? $const.reducedRate : $const.standardRate"
      },
      {
        "path": "$.effectiveRate",
        "expr": "reverseCharge ? 0 : rate"
      },
      {
        "path": "$.netAmount",
        "expr": "direction = 'remove' ? $round(amount / (1 + effectiveRate), 2) : $round(amount, 2)"
      },
      {
        "path": "$.vatAmount",
        "expr": "$round(netAmount * effectiveRate, 2)"
      },
      {
        "path": "$.grossAmount",
        "expr": "$round(netAmount + vatAmount, 2)"
      },
      {
        "path": "$.mustRegister",
        "expr": "turnover12Months > $const.registrationThreshold"
      }
    ],
    "constraints": [],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "VAT",
          "layout": "vertical",
          "components": [
            {
              "id": "note",
              "type": "staticText",
              "text": "Skatturinn: “Skattþrepin í virðisaukaskatti eru tvö. 24% 11%.” The 24% general rate applies to everything taxable unless the law says otherwise; the 11% rate covers food and other goods for human consumption listed in the law’s annex (alcohol included), hotel and other accommodation, books, newspapers and magazines, music recordings, hot water, electricity and oil for heating, passenger transport outside public transport, tour guiding, and admission to baths and spas. VAT is added on top of the price, so the share of a VAT-inclusive price that is tax is 19.35% at 24% and 9.91% at 11%."
            },
            {
              "id": "inputs",
              "type": "fieldSet",
              "label": "Your figures",
              "components": [
                {
                  "id": "amount",
                  "type": "numericField",
                  "label": "Amount (ISK)",
                  "bind": "$.amount",
                  "helperText": "Net amount when adding VAT, VAT-inclusive amount when removing it."
                },
                {
                  "id": "direction",
                  "type": "selectField",
                  "label": "Direction",
                  "bind": "$.direction",
                  "options": [
                    {
                      "value": "add",
                      "label": "Add VAT (net → gross)"
                    },
                    {
                      "value": "remove",
                      "label": "Remove VAT (gross → net)"
                    }
                  ]
                },
                {
                  "id": "category",
                  "type": "selectField",
                  "label": "What is being supplied",
                  "bind": "$.category",
                  "helperText": "Exports and passenger or goods transport between countries are not taxable turnover at all (0%) — use the box below for those rather than picking a rate.",
                  "options": [
                    {
                      "value": "standard",
                      "label": "General rate — 24%"
                    },
                    {
                      "value": "reduced",
                      "label": "Reduced rate — 11% (food, accommodation, books, newspapers, heating, domestic passenger transport…)"
                    }
                  ]
                },
                {
                  "id": "reverseCharge",
                  "type": "checkboxField",
                  "label": "No VAT charged by you: an export, or the customer accounts for the tax",
                  "bind": "$.reverseCharge"
                },
                {
                  "id": "turnover",
                  "type": "numericField",
                  "label": "Taxable sales in the last twelve months (ISK)",
                  "bind": "$.turnover12Months",
                  "helperText": "Registration is required once taxable sales exceed ISK 2,000,000 in any twelve-month period from the start of the activity; below that it is optional."
                }
              ]
            },
            {
              "id": "sep",
              "type": "separatorLine"
            },
            {
              "id": "vatTile",
              "type": "statTile",
              "label": "VAT",
              "bind": "$.vatAmount",
              "format": "currency",
              "currency": "ISK"
            },
            {
              "id": "netTile",
              "type": "statTile",
              "label": "Net",
              "bind": "$.netAmount",
              "format": "currency",
              "currency": "ISK"
            },
            {
              "id": "grossTile",
              "type": "statTile",
              "label": "Gross",
              "bind": "$.grossAmount",
              "format": "currency",
              "currency": "ISK"
            },
            {
              "id": "breakdown",
              "type": "keyValueList",
              "label": "Breakdown",
              "items": [
                {
                  "label": "Rate for the category",
                  "bind": "$.rate"
                },
                {
                  "label": "Rate applied",
                  "bind": "$.effectiveRate"
                },
                {
                  "label": "Must register for VAT",
                  "bind": "$.mustRegister"
                }
              ]
            },
            {
              "id": "sources",
              "type": "sourceList",
              "label": "Sources",
              "layers": 2,
              "items": [
                {
                  "label": "Skatturinn — Skattskylda og skattprósentur: the two VAT rates, 24% and 11%, and the 11% categories (lög nr. 50/1988)",
                  "url": "https://www.skatturinn.is/atvinnurekstur/virdisaukaskattur/skattskylda-og-skattprosentur/nr/100",
                  "date": "2026-10-12",
                  "covers": [
                    "standardRate",
                    "reducedRate"
                  ]
                },
                {
                  "label": "Skatturinn — Skráning á VSK-skrá: registration once taxable sales exceed ISK 2,000,000 in any twelve-month period",
                  "url": "https://www.skatturinn.is/atvinnurekstur/virdisaukaskattur/skraning-a-vsk-skra/nr/101",
                  "date": "2026-10-12",
                  "covers": [
                    "registrationThreshold"
                  ]
                }
              ]
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "S1 10,000 ISK net at the general rate",
        "given": {
          "$.amount": 10000,
          "$.direction": "add",
          "$.category": "standard",
          "$.reverseCharge": false,
          "$.turnover12Months": 0
        },
        "expect": {
          "$.vatAmount": 2400,
          "$.grossAmount": 12400,
          "$.netAmount": 10000
        }
      },
      {
        "description": "S2 12,400 ISK gross back to net at the general rate",
        "given": {
          "$.amount": 12400,
          "$.direction": "remove",
          "$.category": "standard",
          "$.reverseCharge": false,
          "$.turnover12Months": 0
        },
        "expect": {
          "$.netAmount": 10000,
          "$.vatAmount": 2400
        }
      },
      {
        "description": "S3 food at 11%",
        "given": {
          "$.amount": 10000,
          "$.direction": "add",
          "$.category": "reduced",
          "$.reverseCharge": false,
          "$.turnover12Months": 0
        },
        "expect": {
          "$.vatAmount": 1100,
          "$.grossAmount": 11100
        }
      },
      {
        "description": "S4 Skatturinn’s share of a VAT-inclusive price: 19.35% at 24%",
        "given": {
          "$.amount": 10000,
          "$.direction": "remove",
          "$.category": "standard",
          "$.reverseCharge": false,
          "$.turnover12Months": 0
        },
        "expect": {
          "$.netAmount": 8064.52,
          "$.vatAmount": 1935.48
        }
      },
      {
        "description": "S5 exactly ISK 2,000,000 does not yet require registration",
        "given": {
          "$.amount": 0,
          "$.direction": "add",
          "$.category": "standard",
          "$.reverseCharge": false,
          "$.turnover12Months": 2000000
        },
        "expect": {
          "$.mustRegister": false
        }
      },
      {
        "description": "S6 above ISK 2,000,000 it does",
        "given": {
          "$.amount": 0,
          "$.direction": "add",
          "$.category": "standard",
          "$.reverseCharge": false,
          "$.turnover12Months": 2000001
        },
        "expect": {
          "$.mustRegister": true
        }
      }
    ]
  }
}