Calculate your VAT refund, learn the step-by-step process, and save up to 15% on your purchases in Iceland.
Quick amounts
Your Estimated Refund
3,250 ISK
Effective price in other currencies
$156.60
USD
€143.55
EUR
£123.98
GBP
Note: Actual refund percentages vary by tax-free company and may differ slightly. Processing fees reduce the refund below the full VAT amount.
Click an item to load its average price into the calculator.
Follow these six steps to claim your VAT refund when leaving Iceland.
Look for the "Tax Free Shopping" sign in the window.
Spend at least ISK 12,000 (~$97) in a single store on the same day to qualify.
Request the form at the cashier when you pay.
The cashier will fill in the store details. You must provide your name, address, and passport number.
Attach receipts to the form. Do not use sealed goods.
Customs officers may ask to inspect your purchases. Items should be unused and in original packaging when possible.
Go to the Tax Refund desk BEFORE security (landside).
The desk is in the departure hall. It is open for all departures. Arrive early as lines can be long during peak hours.
Customs may inspect your purchases before stamping.
Have your goods accessible in carry-on or be prepared to show checked items before dropping bags.
Choose cash (ISK or EUR), credit card, or bank transfer.
Cash refund is immediate. Credit card refunds take 2-4 weeks. You must claim within 3 months of purchase date.
You must claim your refund within 3 months of the purchase date. After this period, the forms expire and cannot be processed.
Located in the departure hall BEFORE security at Keflavik Airport. Open for all departures. Bring passport, forms, receipts, and purchased goods.
Iceland Tax Free
Most common — used by majority of stores
Global Blue
International — widely recognized worldwide
Planet Tax Free
Growing presence in Iceland
Physical goods you take out of Iceland
Services and consumables used in Iceland
The traditional Icelandic wool sweater (lopapeysa) is the most popular souvenir. They typically cost ISK 15,000–35,000 ($122–$285 USD) and always qualify for a tax refund. Buy from the Handknitting Association of Iceland for guaranteed authentic, hand-knitted quality.
| Item | Price Range (ISK) | Price Range (USD) | Est. Refund |
|---|---|---|---|
| Lopapeysa (Icelandic wool sweater) | 15,000 – 35,000 | $108 – $252 | ~13% |
| 66°North jacket | 30,000 – 80,000 | $216 – $576 | ~15% |
| Blue Lagoon skincare set | 8,000 – 15,000 | $58 – $108 | Below min |
| Icelandic jewelry (lava/Viking) | 5,000 – 30,000 | $36 – $216 | ~11% |
| Handknitting Association items | 3,000 – 40,000 | $22 – $288 | ~11% |
| Omnom chocolate | 1,500 – 3,000 | $11 – $22 | Below min |
The best stores for tax-free shopping, mostly in central Reykjavik.
Authentic wool sweaters & knitwear
Skolavordustigur 19, Reykjavik
Premium Icelandic outdoor clothing
Laugavegur & Bankastroeti, Reykjavik
Icelandic design, fashion & homeware
Skolavordustigur 16, Reykjavik
Souvenirs, gifts & Icelandic crafts
Hafnarstroeti 1-3, Reykjavik
Everything — largest mall in Iceland
Kringlan 4-12, Reykjavik
Main shopping street — dozens of stores
Central Reykjavik
Last-chance shopping — especially alcohol
Keflavik International Airport
The duty-free shop at Keflavik Airport is famously among the cheapest in Europe for alcohol. Many travelers stock up on wine, spirits, and beer here. This is separate from the tax-free refund — duty-free prices already exclude taxes. You can shop both on arrival and departure.
Location
Keflavik Airport, departure hall (before security)
Hours
Open for all departures
What to Bring
Passport, tax-free forms, receipts, purchased goods
Refund Options
Cash (ISK or EUR) or credit card (2-4 weeks)
Maximize your savings with these insider tips from frequent Iceland visitors.
Combine purchases at one store to meet the ISK 12,000 minimum — buy everything in one trip.
Keflavik duty-free shop is among the cheapest in Europe for alcohol — buy on arrival or departure.
Some stores offer to mail your refund form for you — ask at checkout for less hassle.
The refund desk can have long lines in summer — arrive at the airport at least 3 hours early.
Credit card refund is convenient but takes 2-4 weeks. Cash (ISK/EUR) is instant at the desk.
Worn clothing is fine for personal export — "unused" mainly applies to electronics & luxury goods.
Keep all forms together in one envelope — you will need them organized at the refund desk.
The minimum spend is per store, per day — you cannot combine receipts from different stores.
Everything you need to know about tax-free shopping in Iceland.