Enacted 🚨 Action required Rate change
Iceland — Fuel VAT reversion
- Jurisdiction
- 🇮🇸 Iceland
- Tax
- VAT
- Change type
- Rate change
- Status
- Enacted
- Impact
- Action required
- Effective
- 1 September 2026
- Instrument
- IS-LAW-34-2026
- Systems
- POS, Tax engine, ERP
- Verified
- Fetched from official source · high confidence
Revert POS and tax-engine VAT on petrol and diesel (tariff codes 2710.1221, 2710.1229, 2710.1930, 2710.2021, 2710.2029, 2710.2065 and 3826.0000) from 11% to the 24% standard rate on 1 September 2026, unless an extension is published before 31 August 2026.
POSTax engineERP
Iceland's temporary 11% VAT rate on petrol and diesel, introduced by Lög nr. 34/2026 which added ákvæði til bráðabirgða XLIX to VAT Act nr. 50/1988, applies only from 1 May 2026 to 31 August 2026. By the law's own terms the rate reverts to the 24% standard rate from 1 September 2026. As at 3 August 2026 no extending or repealing law had been published in Stjórnartíðindi A-deild, whose most recent entry is dated 30 July 2026.