Iceland VSK Return — Virðisaukaskattsskýrsla

Confirm the entity is registered for VSK with Rikisskattstjori, verify the VSK number (IS + 5–6 digits) and kennitala (10-digit national ID), and establish the filing period (bi-monthly: Jan–Feb, Mar–Apr, May–Jun, Jul–Aug, Sep–Oct, Nov–Dec). Confirm the entity is not in an excluded category such as fishing vessel schemes or non-resident without a fixed establishment.

Gather all sales invoices, purchase invoices, bank statements (Islandsbanki/Landsbankinn/Arion — semicolon-delimited CSV, DD.MM.YYYY), customs declarations for imported goods, and any foreign SaaS subscription records. Identify whether any supplies attract the 11% reduced rate (food, accommodation, books, newspapers, geothermal hot water, radio/TV licence) or zero rate (exports, international transport).

Map every transaction to the correct VSK return field (A through N) using the iceland-vat skill. Apply reverse charge at 24% for ALL foreign services (no EU/non-EU distinction — Art. 35 Act 50/1988), block entertainment and personal-use input VSK, and exclude exempt items (financial services, insurance, wages, loan principal). Convert any foreign-currency amounts at the Central Bank of Iceland rate for the transaction date.

Transfer the classified totals from the working paper into the Virðisaukaskattsskýrsla on the Skatturinn portal (skattur.is). Reconcile Field N (net payable or refundable) against the working paper. Cross-check that reverse-charge entries appear in both Field H (output) and Field L (input), yielding a net-zero self-supply effect unless input is partly blocked.

Submit the completed Virðisaukaskattsskýrsla via the Skatturinn portal (skattur.is) on or before the 5th of the second month after the period end (e.g. 5 April for the January–February period). If VSK is payable, arrange payment by the same deadline to avoid interest and penalties. Retain the submission confirmation reference number and a PDF of the filed return.