Republic of Iceland

However, as soon as one steps off the plane the situation changes quite drastically - prices in Iceland can be vastly higher than in other parts of Europe due to the high import duties and the 25.5% VAT rate, particularly for alcohol, foreign foods, clothing, etc. For example, many retail goods can be 3-4 times more expensive than in North America. Nonetheless, as Iceland is recovering from the financial meltdown, bargains can still be found due to the low value of the currency. If you are not a permanent resident of Iceland, and you spend 6000 ISK or more on goods that you are bringing out of the country within 3 months of purchase, you can obtain a refund for VAT when leaving Iceland from Keflavik

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