Iceland Tax Agency Clarifies VAT Treatment of Import, First Resale of E-Vehicles

The Icelandic Directorate of Internal Revenue Nov. 24 clarified the VAT treatment of imports and first resales of environmentally friendly vehicles (e-vehicles), upon the expiration of VAT concessions scheduled for the end of 2023. The clarification explains that: 1) VAT is waived for full or deposit payments made before the start of 2024; 2) the payment of balances in excess of the 2023 maximum authorized amounts is subject to VAT, whether made before or after the start of 2024; 3) VAT applies to all e-vehicle imports from Jan. 1, 2024; and 4) taxpayers engaged in the sale or rental of ...