The total turnover of enterprises in activities that are subject to VAT, excluding the pharmaceutical industry, travel agencies and land passenger transport, amounted to 716 billion ISK in the two month period of September to October 2017, which is an increase of 8.1% compared with the same period in 2016. On an annual basis, the turnover was 2.4% higher in the period from November 2016 October 2017 compared with the preceding twelve months. Travel agencies were exempt from VAT until 2016, and this should be taken into account when comparing turnover before and after that change.

For the time being, turnover from the pharmaceutical industry is excluded in these statistics. Data validation for that sector is underway.

Table 1: Turnover according to VAT-reports (billion ISK)
  Sept.-Oct. 2016 Sept.-Oct. 2017 % Nov. 2015-Oct. 2016 Nov. 2016-Oct. 2017 %
Total excluding the pharmaceutical industry¹ 681 738 8.3 4,009 4,132         •
Total excluding the pharmaceutical industry,  travel agencies and land passenger transport² 662 716 8.1 3,906 4,002 2.4
A-01/A-02 Agriculture and forestry³         •         •         • 51 51 0.4
A-03/C-102 Fishing, aquaculture; fish processing 64 69 8.0 365 313 -14.1
C-24 Manufacture of basic metals 32 39 19.9 201 216 7.5
C Manufacturing; excluding fish processing,  pharmaceutical industry and manufacture of basic metals 68 69 2.1 395 403 2.1
D/E Electricity, gas;  water supply; sewerage and waste management 27 29 7.9 161 168 4.3
F/B Construction, mining and quarrying 50 61 21.6 266 318 19.3
G-45 Wholesale and retail trade and repair of motor vehicles and motorcycles 24 26 9.8 160 170 6.3
G-46171/G-46172/G-46381 Wholesale of fish and fish markets 44 40 -10.1 235 191 -18.6
G-4671 Wholesale of fuels 20 24 20.2 109 121 11.3
G-46 Other wholesale 56 58 4.7 340 344 1.0
G-47 Retail trade 69 76 9.9 423 447 5.8
H Transportation and storage² 73 82 12.3 429 445         •
I Accommodation and food service activities 30 34 10.8 166 188 13.6
J Information and communication 33 35 5.5 194 194 0.3
N-7711 Renting and leasing of cars and light motor vehicles 8 8 -1.9 44 50 12.4
N-79 Travel agency, tour operator reservation service and related activities² 16 19 16.4 85 108         •
e-services from abroad 1 1 117.0 2 7 170.2
Other fields of activity 64 66 2.3 383 397 3.7
¹For the time being, VAT-turnover is pubished excluding the pharmaceutical industry. Data validation is ongoing
²Since the beginning 2016, some economic activities are no longer exempt from VAT, e.g. travel agencies (section N) and certain types of passenger transportation (section H).
³Most farmers report VAT every 6 months. Hence data in two-month buckets are not a good indicator of trends in agriculture.

 

Table 2: VAT-turnover November 2016 to October 2017, by VAT-rate (billion ISK)
  Zero rate Reduced rate Standard rate Total
Total excluding the pharmaceutical industry¹ 1,225 (30%) 901 (22%) 2,021 (49%) 4,148
A-01/A-02 Agriculture and forestry 10 (19%) 10 (20%) 31 (61%) 51
A-03/C-102 Fishing, aquaculture; fish processing 210 (67%) 89 (28%) 15 (5%) 313
C-24 Manufacture of basic metals 215 (99%) 0 (0%) 1 (1%) 216
C Manufacturing excluding fish processing (C-102),
the pharmaceutical industry (C-21)
and manufacture of basic metals (C-24)
93 (23%) 136 (34%) 175 (43%) 403
D/E Electricity, gas;  water supply; sewerage and waste management 7 (4%) 25 (15%) 137 (81%) 168
F/B Construction, mining and quarrying 5 (2%) 1 (0%) 311 (98%) 318
G-45 Wholesale and retail trade and repair of motor vehicles
and motorcycles
8 (5%) 0 (0%) 161 (95%) 170
G-46171/G-46172/G-46381 Wholesale of fish and fish markets 143 (75%) 39 (20%) 9 (5%) 191
G-4671 Wholesale of fuels 28 (23%) 6 (5%) 87 (72%) 121
G-46 Other wholesale 29 (8%) 89 (26%) 226 (66%) 344
G-47 Retail trade 19 (4%) 188 (42%) 240 (54%) 447
H Transportation and storage 344 (77%) 24 (5%) 76 (17%) 445
I Accommodation and food service activities 5 (3%) 176 (93%) 7 (4%) 188
J Information and communication 40 (20%) 16 (8%) 139 (71%) 194
N-7711 Renting and leasing of cars and light motor vehicles 1 (2%) 0 (1%) 49 (98%) 50
N-79 Travel agency, tour operator reservation service
and related activities
15 (14%) 86 (80%) 6 (6%) 108
e-services from abroad 0 (0%) 1 (11%) 6 (88%) 7
Other fields of activity 39 (10%) 14 (4%) 344 (87%) 397
¹For the time being, VAT-turnover is pubished excluding the pharmaceutical industry. Data validation is ongoing

 
Turnover by VAT-rate
The higher VAT-rate, or standard rate, is now 24%. All goods and services are subject to this rate unless otherwise specified in the law on VAT (Act 50/1988).

The lower VAT-rate is now 11%. Examples of goods and services in this category include: books, newspapers, house-heating, food, restaurants, accommodation services, and domestic passenger transport (excluding public transport). Alcoholic beverages are subject to the lower VAT-rate since 1 January 2016.

A zero-rated supply falls within the scope of the VAT Act, but no output VAT is charged since the rate is zero. This category includes export of goods and services, and contractual payments from the Treasury related to the production of milk and sheep farming.

Some services are exempt from VAT, e.g. public transport, medical services, athletic activities, museums, postal services, and lotteries. The suppliers of such services cannot charge VAT or get credit for input VAT on purchases for the exempt (part of the) business.

More details on VAT can be found at the Directorate of Internal Revenue

Revision of statistics

At the time of our previous press release, in September, the VAT turnover, excluding the pharmaceutical industry, in May to June 2017 was estimated 752.7 billion ISK which was an increase of 1.5% compared with the same period in 2016. At present, more data are available and the VAT turnover in May to June 2017 is estimated 754.3 billion ISK which is an increase of 1.8% compared with the same period in 2016.

Other statistics on business economy

Statistics Iceland publishes annual income and balance statements of enterprises by activity, based on tax returns, providing a detailed picture of the individual sectors. 
Statistics

  The tourism industry 
  All economic activities