Dagsetning Tilvísun
26. March 1993 464/93
The Director of Internal Revenue hereby provides the following information regarding warranty repairs and advertising as requested in your letter on March 18th 1993.
The sale of warranty repairs and advertising income is subject to Value Added Tax in Iceland. Foreign enterprises having no registered office, residence, or like, in Iceland may however, on application, obtain reimbursement of Value Added Tax paid on warranty repairs.
The sale of advertising income to foreign enterprises, with domicile outside of Iceland, is however exempt from VAT, provided that the enterprises would be taxable if they were domiciled in Iceland.
In both cases the company must provide the seller a certificate, from an official authority in the country it is domiciled, confirming that it is registered for business purposes.
Yours sincerely,
Vala Valtýsdóttir.
The Directorate of Internal Revenue
Enclosed: 1) Rules for reimbursement of VAT to foreign enterprises.
2) Memorandum of VAT regarding non-resident Companies operating a Branch in Iceland