Iceland Import Duty Rates

Iceland, though a member of the European Economic Area (EEA), is not part of the European Union. As such, it imposes its own set of customs duties on goods imported from non-EEA countries. Import duty rates vary depending on the classification of the goods, their origin, and their intended use. The duty structure is designed to protect domestic industries while complying with international trade agreements.

Iceland’s import duties are product-specific. Here’s a general breakdown:

• Industrial Goods: Most industrial goods, including machinery and electronics, are duty-free when imported from EEA countries. However, non-EEA imports may be subject to duties ranging from 0% to 15%.
• Agricultural Products: Heavily protected, agricultural imports such as meat, dairy, and produce may attract high tariffs—sometimes exceeding 30%—to support local farmers.
• Vehicles and Automotive Parts: Import duties apply depending on engine size, emissions, and fuel type, with electric vehicles enjoying significant exemptions or reduced rates.
• Luxury Goods: Items such as alcohol, tobacco, and high-end fashion often face higher duties and additional excise taxes.

Iceland is part of several bilateral and multilateral trade agreements, most notably within the EEA. Goods originating from these partner countries often benefit from reduced or zero-duty rates. To qualify for preferential treatment, importers must provide proper certificates of origin and documentation in line with customs regulations.

Beyond import duties, goods entering Iceland are typically subject to Value-Added Tax (VAT), which is levied at a standard rate of 24%. Some goods may fall under a reduced VAT rate of 11%—especially essentials like books and foodstuffs. Additionally, excise duties may apply to specific categories such as alcohol, tobacco, and fuel. These cumulative charges can significantly impact the final cost of imported goods.

Importers are encouraged to consult Iceland’s customs tariff database or trusted third-party calculators. One helpful source is the Iceland Import Duty Rates Tool, which provides product-specific duties based on current regulations. Alternatively, Icelandic Customs (Tollstjóri) provides official resources, including HS code lookup and duty schedules.