In force Rate change
Iceland — Fuel VAT temporary reduction
- Jurisdiction
- 🇮🇸 Iceland
- Tax
- VAT
- Change type
- Rate change
- Status
- In force
- Effective
- 1 May 2026
- Verified
- Corroborated against official id · high confidence
Iceland temporarily reduced the VAT rate on petrol and diesel from 24% to 11% for the period 1 May to 31 August 2026, announced by the Prime Minister Office on 10 April 2026; fuel retailers are legally required to pass the full reduction to consumers. The standard 24% rate resumes 1 September 2026.