As a visitor to Iceland, whenever you buy goods for more than 4,000 ISK in one shop, you are entitled to tax refund. When you shop Tax Free, it means that you are getting the VAT (Value Added Tax) deducted from the purchased price. The tax is used for social purposes in Iceland and as a foreign resident you can claim this tax back and shop Tax Free.

How it works: When you buy the products in the shop you pay the full price, but should ask for a "tax-free" form, which entitles you to a 7-15% refund on the goods you just bought.

If the amount of your refund is more than 5,000 ISK, you must have the tax free form stamped by the Customs Authority Office at the airport before you check in. You may be asked to produce your purchases (with the exception of woolen goods), so you should carry them as hand luggage but after you have produced your purchase you can pack it in your suitcase and check it in.

Can I use the refund system for all my expenses?

No, you can only use it for goods you will take with you out of the country. Services are not included, nor does food which you consume during your stay.

Can everyone shop Tax Free in Iceland?

Yes, everyone with a permanent address abroad can shop Tax Free

Where can I get my refund?

The money can be refunded in several places in Reykjavík, such as;
·ITA service desk, Aðalstræti 2
·Kringlan shopping mall
·Smáralindin shopping mall
·Skarfabakki, cruise ship service center (only open during summer)
·ITA service desk at the BSI bus terminal
·Keflavik international airport
·Both at the Reykjavík domestic airport and Keflavik airport you can use your tax free form as a payment in the duty free shop