VAT or Not? A Straight-Talk Guide to Iceland's 2 Million ISK Threshold

Why the 2 M ISK Rule Exists

Icelandic law sees VSK as a fair‑play line: once turnover proves "significant," you charge—and reclaim—VAT like larger firms.

3 Signals You're About to Cross the Line

1. Monthly earnings > 170 000 ISK consistently.
2. Seasonal spikes (e.g., summer tourists) that push annualised revenue over 2 M.
3. Big one‑off project worth 500 000 ISK+.

Registering in Under 10 Minutes

Step‑by‑step screenshot walkthrough using RSK e‑portal form 5.11. FreelancePay auto‑fills legal‑entity info and saves your sig.

Pricing After VSK – 3 Options

Automating Your First VSK Return

Unlock the VAT Dashboard beta: live turnover tracker + XML export. Beta testers report 90 % less time on filings.