Travels in the North

Musings on arctic holidays

Tag Archives: VAT

Iceland VAT rate to treble

Bad news for travellers to Iceland this week, as it was announced that the VAT rate on hotels, restaurants and tourist attractions will be more than trebled from 7% to 25.5% from next May.

When I first visited Iceland in 2006 (pre economic crash) it was a very expensive, almost prohibitively so. I last went in 2010 and it was much cheaper – but by the sound of things with this announcement prices will rocket again.

I can understand things are tough in Iceland at the moment but do wonder if this will be counter productive, will people be put off travelling there because of the cost? I’m planning a trip there next month – certainly I’m glad to be getting in before the price rise.

Full story from the telegraph here http://www.telegraph.co.uk/travel/travelnews/9533548/Iceland-to-treble-VAT-on-hotels.html