Iceland Gazettes Law Amending VAT Exemptions on Green Vehicles, Charging Station Installation

The Icelandic Official Gazette Dec. 30 published a law amending VAT exemptions on a progressive basis for taxable sales of electric, hydrogen, and hybrid vehicles. The law includes measures providing progressive exemptions on: 1) electric or hydrogen vehicles and motorcycles through Dec. 31, 2023; and 2) hybrid vehicles through Dec. 31, 2022. The law also provides for a 100 percent VAT exemption on construction and labor costs related to the installation of car charging stations on residential property. The law enters into force July 1, 2020, and the exemptions generally take effect Jan. 1, 2020. [Iceland, Official Gazette, 12/30/19]

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