Iceland Parliament Passes Bill to Amend VAT Treatment of Electric Cars

The Icelandic Parliament (Althingi) June 19 passed Bill No. 1012, to amend the VAT treatment of electric cars. The bill includes measures to: 1) increase the number of electric cars that can receive a VAT concession to 20,000 from 15,000, effective Jan. 1, 2023; 2) reduce the current maximum of abolished VAT on each electric car to 1,320,000 Icelandic kronur (US$10,106) from 1,560,000 kronur (US$11,944) per car, effective from Jan. 1, 2023, through Dec. 31, 2023; 3) provide a VAT exemption on the resale of electric cars; and 4) provide a VAT refund on the import or purchase of vehicles ...