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Cruise operators must now file and pay taxes based on passenger activity during domestic and international voyages in Icelandic territory.
Cruise ship operators in Iceland are now subject to specific tax regulations based on their voyage type, according to a notice issued by Skatturinn, the Icelandic Directorate of Internal Revenue.
The rules apply to domestic and international cruise sailings, requiring operators to report passenger counts and remit either a gistináttaskattur (overnight accommodation tax) or innviðagjald (infrastructure fee) based on the ship’s operations within Icelandic customs territory.
Domestic Cruises: Gistináttaskattur
For cruise ships traveling within Iceland, operators must pay:
- ISK 400 per passenger per started 24-hour period.
- Tax applies to each day the passenger remains aboard within Iceland’s territorial waters.
International Cruises: Innviðagjald
For international cruise ships, defined as those operating between countries but stopping in Iceland:
- ISK 2,500 per passenger is levied.
- Applies for each visit while docked at an Icelandic port or within the customs zone.
Reporting & Payment Deadlines
Operators must:
- Submit passenger count reports electronically via Skatturinn’s online service portal.
- File and pay without a reminder no later than the official due date.
Reporting Periods:
- Accommodation Tax (Gistináttaskattur): The same tax period and deadlines are for other tourism businesses (see Skatturinn’s accommodation tax calendar).
- Infrastructure Fee (Innviðagjald): Calculated per customs area visit, with payment due 7 days after departure from the Icelandic customs zone.
- If the due date falls on a public holiday, it rolls forward to the next business day.
Additional Information
- Full guidance and instructions are available on the Skatturinn website, including:
- Definitions of domestic vs. international voyages
- How to file electronically
- Penalties for late or inaccurate filings
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