Shipping From Canada
to Iceland.

Documents Only

Most documents can be shipped from Canada to Iceland duty-free provided they have no commercial value.

Document shipments include:

• Annual reports
• Computer print-outs
• Diplomas
• Drawings
• Driver's licence
• Gift cards
• Graphs
• Intercompany mail
• Manuscripts
• Price lists
• Proposals and bids
• Specifications sheets
• Visa applications

The following items may also be shipped from Canada to Iceland duty-free providing they meet customs criteria:

Sources:
https://www.ups.com/ga/CountryRegs?loc=en_US

Shipping Gifts

Parcels shipped as gifts from Canada to Iceland of ISK 13,500 (about $135 CAD) or less will be exempt from duty.

Shipments from Individual-to-Individual

A gift shipment from an individual in Canada to an individual in Iceland will be duty-free if its value is ISK 13,500 (about $135 CAD) or less, and:

• The shipment has no commercial value
• The label clearly states that the gift is for a birthday, wedding*, confirmation, or Christmas present
• It is sent to someone related to the shipper

*Wedding gifts exceeding ISK 13,500 ($135 CAD) are exempt from duties provided:

• They are approved by the Director of Customs
• Shipped no later than six months from the wedding

Shipments from Business-to-Business

Shipments to a business in Iceland from a business in Canada are not considered as gifts and will incur duties and taxes.

Shipments from Business-to-Individual

Shipments from a business in Canada to an individual in Iceland will incur taxes and charges regardless of the value of the gift.

Gift Checklist

• A commercial invoice must be included with your shipment
• The words 'Gift Shipment' or 'Unsolicited Gift' are included on the commercial invoice, even if the shipment is sent at Christmas time (see sample)
• List the items in the parcel and write the value of each
• Sending more than one gift in the parcel? Wrap and tag each one individually.

Multiple Gifts in One Shipment

Multiple gifts in one shipment will be exempt from duty and taxes if each gift is wrapped and tagged individually and the shipper or receiver of the gift is not a business.

Sources:
https://posturinn.is/en/individuals/frequently-asked-questions/are-you-ordering-online/?id=9994506f-90cb-4b80-82b4-6e12396498a9

Shipping Personal Effects

Icelandic nationals returning to live permanently in Iceland can import their personal goods free of duty and tax providing:

• They have lived outside of Iceland for 1 year or more
• The goods are used and have been owned for 1 year or more
• The goods are declared within 12 months from when the returning citizen takes up residence
• The value of the does not exceed ISK 140,000 (about $1415 CAD)

Personal effects are for the use of its owner and his or her family. They include items such as:

• Personal items such as clothing and footwear
• Household furniture and appliances
• Audio equipment, computers, artworks, ornaments, books, and musical instruments
• Sports equipment and outdoor gear
• Stamp and coin collections
• Portable instruments required for a profession or trade

The following items are not exempt from duty and tax:

• Tobacco and tobacco products
• Alcoholic beverages
• Materials for professional use

Moving Temporarily

Students

Students may ship their personal effects to Iceland if they move there temporarily for their studies.

Personal effects are considered to be:

• Educational materials (paper and pens, computers and books)
• Household goods such as linens, shoes, and clothing
• Furniture used by a student, like a desk and chair

Non-students

Canadian citizens may ship their personal effects to Iceland exempt from duty and taxes when moving temporarily.

Exemption will be granted under the following conditions:

• The goods have been owned for 1 year or more and have been used
• The owner has lived in Canada for a minimum of 12 continuous months

Moving Permanently

If you are moving to Iceland after having lived outside of the country for 1 year or more, you may bring your used personal effects into the country tax and duty-free.

The following conditions apply for a tax and duty exemption:

• Your goods may not be lent, sold or given away for at least after your arrival.
• Household effects have been owned by the importer and his/her family for at least one year and are exclusively for the household
• Goods are valued at ISK 140,000 (about $1415 CAD) or less (based on the retail value at the purchase location)
• The amount applies to each member of family 18 years of age or older

Personal Effects Checklist

• A commercial invoice must be included with your shipment
• Commercial invoice must clearly indicate 'Personal Effects' (see sample)
• A detailed description of each item is provided

Sources:
https://www.government.is/media/fjarmalaraduneyti-media/media/log-reglur/Regulation_No_630_2008.pdf
https://www.skatturinn.is/english/individuals/customs-matters/moving-to-iceland/dutiable-goods/dutiable-goods

Food, Chocolate, Candies

Food and food items like candies and chocolate can be shipped to Iceland providing they meet the customs standards established by the European Union.

You May Ship

• Chocolate, candy, and confectionery
• Pasta and vermicelli without meat products
• Baked goods providing they do not contain meat products
• Honey
• Broths and extracts
• Food supplements
• Powdered baby milk and food, and foods for special medical diets*
• Cured, cooked, or smoked fish (up to 20 kg)
• Live oysters, mussels, and snails*

Do Not Ship

• Animal-based products
• Margarine of animal origin
• Perishable items - eggs and dairy products
• Meat and meat products

Food, Chocolate, Candies Checklist

• Clearly indicate 'Food' on the commercial invoice in the General Description or Remarks section (see sample)
• Ensure that your food, chocolate, or candies may be imported into the country
• You are not shipping commercial quantities (for any duty & tax exemption)
• Check with your carrier that they will accept food shipments

Sources:
https://www.mast.is/en/import-export/mail-orders
https://www.mast.is/en/import-export/what-can-i-bring-with-me-to-iceland

Samples

Commercial samples are those that can only be used for demonstration purposes. The purpose is to promote products and solicit sales. Samples are not to be sold.

Samples shipped to Iceland may be exempt from duty and tax if they are of negligible value (up to ISK 5000 - about $50 CAD - and no more than 10 kg in weight), and:

• Goods have no commercial value
• Goods are sent to an exhibition or for demonstration purposes
• There is no more than one sample of each style or quality in the shipment
• Letters, booklets, and printed material are not intended for redistribution

Before shipping commercial samples to Iceland, you must ensure the following:

• The commercial invoice must clearly state that the package contains samples
• Package is labelled 'Mutilated Samples' or 'Marked Samples not for Resale'

Commercial Sample Checklist

• A Commercial Invoice must be included with your shipment
• Clearly indicate 'Commercial Samples' on the commercial invoice in the General Description & Detailed Description of Goods (see sample)
• The item shipped has tearing, perforation, slashing, defacing, or has permanent marking clearing indicating the item as commercial sample

Sources:
https://www.government.is/media/fjarmalaraduneyti-media/media/log-reglur/Regulation_No_630_2008.pdf
https://www.skatturinn.is/english/companies/customs-matters/importing-to-iceland/ata-carnets/-

Advertising Material

Printed material for advertising purposes is exempt from duty on imports such as:

• Letters, booklets, and printed material
• Goods for exhibitions and trade or industrial fairs, including materials used to decorate exhibition booths
• Office supplies used at conferences, meetings, or celebrations
• Table coverings and tableware, e.g. with the company logo

Shipping advertising material to Iceland from Canada is fairly easy. Ensure that:

• A shipment with printed advertisements must be for only one service or product
• Forms clearly show the name of the company that produces or sells the goods or supplies the services to which they refer

Advertising material shipped for display at a trade fair or exhibition may also be sent using an ATA Carnet. See Temporary Imports for details.

Advertising Material Checklist

• Commercial invoice must clearly indicate 'Promotional Material - Not for Resale' (see sample)
• A detailed description of each item is provided

Sources:
https://www.government.is/media/fjarmalaraduneyti-media/media/log-reglur/Regulation_No_630_2008.pdf
https://www.skatturinn.is/einstaklingar/tollamal/inn-og-utflutningur/timabundinn-innflutningur/timabundinn-innflutningur

Repairs

Sending a piece of equipment for repair to Iceland from Canada is easy. Duty and taxes are exempt because of the European Union's inward processing rules. Inward processing means items shipped from Canada to Iceland for repair will be duty-free.

Free warranty repairs done in Canada and returned to Iceland will not incur VAT.

Items Under Warranty

As Canada and Iceland are part of the EU free-trade agreement (CETA), repairs under warranty returning to Canada from Iceland are duty-free and will not be charged GST.

Items No Longer Under Warranty

An item that is no longer under warranty and returns to Canada from Iceland will be charged GST. The GST will be charged on the value of the repair and on any parts required for the repair.

Sending Product for Repair to Iceland

Sending equipment for repair to Iceland is straightforward because of the European Union's inward processing rules, which means items shipped from Canada to Iceland for repair will be duty-free.

Returning Repaired Product to Iceland

Equipment repaired in Canada under a warranty will not incur duty and taxes when they re-enter Iceland.

Repair Checklist

• Commercial invoice must clearly indicate 'REPAIR & RETURN' under the General Description or Remarks, and include the estimated time of return(see sample)
• Include repair contract with shipment
• Serial or product number and the cost of repairs should be indicated under the Detailed Description of Goods section
• Include the original shipping documents or tracking number from when the item was first exported to Iceland or exported to Canada (depending on which case applies)
• A commercial invoice must be included with your shipment

Sources:
https://www.tollur.is/upload/files/Tollal%C3%B6g%2088%202005%20%C3%A1%20ensku%20192%2023.%20ma%C3%AD%202006%20fyrir%20vef%20Endanleg%20%C3%BAtg%C3%A1fa%281%29.pdf[Article 10 Goods sent abroad for repairs during their guarantee period]

Temporary Imports

Temporary imports of certain goods into Iceland will be exempt from duty and taxes for a period of up to 12 months.

Goods that often qualify as temporary imports include:

• Commercial samples
• Materials used to decorate an exhibition booth
• Items that will be used or displayed at an exhibition, meeting, or trade or industrial fair
• Equipment required to evaluate and test the operation of other goods or equipment
• Tools and specialised equipment required for repairing, exploring, producing, or manufacturing
• Equipment, printed matter, office supplies, etc. for use at conferences, meetings, or celebrations
• Computers and related equipment
• Equipment intended to ensure the security of participants
• Printed material, table coverings, and tableware, e.g. with the company logo

ATA Carnets

Advertising shipped for display at a trade fair or exhibition may be sent to Iceland using an ATA carnet.

Temporary imports must meet the following criteria:

• The goods are not to be altered except through natural wear-and-tear
• Goods may not stay in Iceland longer than 12 months

Qualifying for Duty & Tax Free Temporary Import

In order to import your goods duty and tax free into Iceland, you can pick from Option 1 or 2 of the Temporary Import Methods listed below.

Each option has its pros and cons. Regardless, each of the following methods requires you to complete a commercial invoice. More details below.

In addition to the 2 options above, the following conditions must also be met in order to qualify for a duty and VAT free exemption:

• The goods arrive and leave in the same condition, i.e. they undergo no repairs nor are they used in manufacturing
• Stay no longer than 12 months in Iceland

NOTE:

• If the above conditions are not followed, duties and taxes will be charged as though the goods have been imported permanently
• Your Customs broker can clear goods of a temporary nature (FedEx, UPS, DHL, etc. typically CANNOT clear goods of temporary nature)

Temporary Imports Checklist

• Commercial Invoice clearly stating 'Temporary Import'. This must be written in the General Description section and the Detailed Description of Goods. (see sample)
• The goods arrive and leave in the same condition, i.e. they undergo no repairs nor are they used in manufacturing
• Stay no longer than the period listed above
• Include your ATA Carnet with your shipment (if applicable)
• Include the expected return date or the date that it was originally received within the country (whichever applies)
• Any above listed items not listed in this checklist

Sources:
https://www.government.is/media/fjarmalaraduneyti-media/media/log-reglur/Regulation_No_630_2008.pdf
https://www.skatturinn.is/english/companies/customs-matters/importing-to-iceland/ata-carnets/

Permanent/Sold Goods

All goods imported into Iceland are subject to customs duties on values of ISK 2,000 or more (about $20 CAD).

As of 1 July 2021, all shipments, regardless of value, will be subject to VAT.

Occasional Shipper

If you only ship occasionally to Iceland, for example items sold on eBay, there isn't too much you need to do. You must:

• Include 3 copies of the commercial invoice with your shipment
• Provide a detailed description of the goods on the commercial invoice (in order to avoid customs delays)

Shipments of ISK 2,000 or less (about $20 CAD) will be duty-free. However, VAT will be incurred on all shipments starting from 1 July 2021.

Regular shipper

If you regularly sell and ship goods to Iceland, we suggest you consult with licenced customs broker in Iceland.

There may be specific requirements to consider, for example, obtaining an Economic Operator Registration and Identification (EORI) number.

Sources:
https://www.skatturinn.is/einstaklingar/tollamal/verslad-a-netinu/
https://www.skatturinn.is/einstaklingar/tollamal/inn-og-utflutningur/