tollabætur

Tollabætur is an Icelandic term that translates to "customs refunds" or "duty drawbacks." It refers to a system where businesses can reclaim customs duties and value-added tax (VAT) paid on imported goods that are subsequently exported. This mechanism is designed to enhance the competitiveness of Icelandic businesses in international markets by removing the cost burden of import duties on goods that are not consumed within Iceland.

The tollabætur system applies to goods that are imported into Iceland and then re-exported, either in their original form or after processing. For example, a company importing raw materials, using them to manufacture a product, and then exporting that finished product, may be eligible to reclaim the duties paid on the initial raw material imports. This encourages manufacturing and processing activities within Iceland that are geared towards export markets.

To claim tollabætur, businesses typically need to provide documentation demonstrating both the payment of import duties and taxes and the subsequent export of the goods. This might include import declarations, customs clearance documents, and export records. The specific regulations and procedures for applying for and receiving tollabætur are administered by the Icelandic Directorate of Customs (Tollstjórinn). The system aims to align Iceland's trade policies with international practices that support export-oriented industries.