Commerce Iceland VAT

From 1 November 2011, businesses outside Iceland which provide electronically supplied services to non-taxable parties domiciled or with a permanent establishment in Iceland must register for VAT there (through a local representative) if the value of the services exceeds ISK 1 million (about £5,500/€7,000) per 12 month period, and charge and account for Icelandic VAT on their supplies.