Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 2/18/2019

Retail prices in Iceland can be high, reflecting the cost of shipping to an isolated location, the need to import most industrial inputs, tariffs and regulatory costs for certain items, and a general 24% Value Added Tax (VAT) for most items (it is 11% for food, books, magazines and a few other items).

U.S. wholesale retailer Costco opened its first store in Iceland in May, 2017, and offers prices that are considerably lower than other retailers in Iceland offer. Retailers have responded to Costco’s pricing and immense, immediate popularity by lowering prices. Strong recent appreciation of the Icelandic krona has also lead to many retailers lowering prices and food products, electronics, cars, and more goods.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.