Iceland Announces Approval for Temporary Reduction in VAT Rate on Fuel at Pump

The Icelandic Government April 10 announced its same date approval of a temporary reduction, to 11 percent from 24 percent, in the VAT rate on fuel at the pump. The announcement includes that: 1) retailers would be obligated to fully pass on the reduction to consumers; 2) the reduction is expected to be effective from May 1 to Aug. 31; and 3) a bill will be presented to Parliament for the reduction. [Iceland, Government Portal, 04/10/26]

Reference: View Announcement. View Index.