VAT regarding a conference to be held in Iceland

Dagsetning                       Tilvísun
June 9^th, 1992                             411/92

In your telefax on June 5th 1992 you ask for information on VAT regarding a conference to be held in Iceland.

The sale of exhibition space, sponsorship income and advertising income as well as dinner fees is subject to VAT. However, sale of exhibition space, sponsorship income and advertising income to foreign companies, with domicile outside of Iceland, is exempt from VAT, provided that the companies would be taxable for VAT if they had domicile in Iceland. Banks and financial institutions can not claim credit for VAT in Iceland. 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.

Delegate fees on conferences for educational purposes is not subject to VAT. Hotel accommodation and transport of people is as well exempted from VAT.

A registered company in Iceland may claim a credit for Icelandic input tax as described in the enclosed memorandum.

Yours sincerely

Júlíus Smári

Enclosed: Memorandum of VAT regarding non-resident Companies operating a Branch in Iceland.