Iceland: Expiration of tax relief measures for electric modes of transport

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The Icelandic tax agency has announced the expiration of tax relief measures for the acquisition of electric modes of transport at the end of this year. These measures, which encompass the exemption of VAT on importation and the first sale, subject to specific value caps, pertain to electric and hydrogen vehicles, as well as electric bikes and mopeds. Notably, the standard value-added tax regulations will be applicable to payments made for domestically available vehicles before January 1, 2024, even if the delivery occurs in the subsequent year. Importantly, the tax reliefs will cease to be valid for imports starting from January 1, 2024.



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