The total turnover of enterprises in activities that are subject to VAT amounted to 551 billion ISK in the period of January-February 2016, which is an increase of 5% compared to the same period in 2015. The total turnover was 9% higher in the period March 2015 to February 2016 compared with the previous 12 months.
Since the beginning of this year, some economic activities are no longer exempt from VAT, e.g. travel agencies (in section N) and certain types of passenger transportation (in section H). The increased turnover in these sections is partly due to these changes. However, there is also a real increase in turnover for these activities.
Another change at the beginning of this year was that alcoholic beverages were moved from the higher VAT-step to the lower, coinciding with an increase in the excise tax on alcohol. The VAT-turnover is published net of VAT and therefore the transition from one VAT-step to another does not affect the figures. However, the excise tax is included in “VAT-turnover net of VAT” so the excise tax increase leads to an increase in the VAT-turnover of alcoholic beverages. The higher excise tax therefore leads to increases in the categories “wholesale and retail trade” and “Accommodation and food services”.
| Turnover | ||||||
| January-February | March-February | |||||
| 2015 | 2016 | % | 2014-2015 | 2015-2016 | % | |
| Total | 523,358 | 550,863 | 5% | 3,536,110 | 3,855,913 | 9% |
| 01/02 Agriculture and forestry¹ | ... | ... | ... | 45,438 | 48,093 | 6% |
| 03/10.2 Fishing, aquaculture; fish processing | 60,280 | 53,642 | -11% | 363,719 | 387,455 | 7% |
| C Manufacturing excluding 10.2, fish processing | 104,676 | 95,787 | -8% | 674,796 | 699,439 | 4% |
| D/E Electricity, gas; water supply; sewerage and waste management | 27,763 | 27,277 | -2% | 162,349 | 167,102 | 3% |
| F/B Construction, mining and quarrying | 21,554 | 28,554 | 32% | 169,004 | 207,257 | 23% |
| G Wholesale and retail trade; repair of motor vehicles and motorcycles | 171,468 | 176,148 | 3% | 1,150,041 | 1,225,681 | 7% |
| H Transportation and storage | 45,962 | 55,733 | 21% | 338,184 | 389,452 | 15% |
| I Accommodation and food service activities | 14,170 | 18,166 | 28% | 115,851 | 138,593 | 20% |
| J Information and communication | 25,872 | 28,406 | 10% | 168,393 | 178,650 | 6% |
| L Real estate activities | 9,151 | 10,080 | 10% | 59,273 | 69,007 | 16% |
| M Professional, scientific and technical activities | 19,137 | 22,553 | 18% | 127,038 | 144,333 | 14% |
| N Adminstrative and support service activities | 10,214 | 17,217 | 69% | 76,320 | 97,421 | 28% |
| Other fields of activity | 11,303 | 15,479 | 37% | 85,705 | 103,432 | 21% |
| ¹Most farmers report VAT every 6 months. Hence data in two-month buckets are not a good indicator of changes in agriculture. | ||||||
| Farmers who report VAT every 6 months have longer respite than other VAT-payers. Therefore, the first figures on turnover in agriculture are often underestimates. | ||||||
| In the March publication of VWAT-return, the turnover in acriculture was measured as being 2% higher in 2015 than in 2014, while the most recent data indicates that the increase was 6%. | ||||||