And here is what your price tag will likely look like..
You select a shirt and the price is 50.00 USD. You go to the counter and the sales person says that will be 50.00 USD. You ask what is the tax? “ Oh it is already in the price”. What you may not know is that tax is 25.5%. That is the sales tax in Iceland. Last year it was 24.5%.
In Iceland, when you go to reclaim your VAT tax at the airport ( and you must have a special form filled out by the shop where the item was purchased and not all shops do this) you only get 15% back.
Oh and did I mention that there are annual income taxes in Iceland? Not sure what that amount is on your income but you can bet it is high.
Now, what kind of homes do they have? Some are quite nice, some quite small. What kind of appliances do they have? Not the same sizes we have oh and costs? Let’s say many don’t have tumble dryers...can we say skinny fridges or what we would consider a bar fridge?
Be careful what you wish for you just might get it.
I forgot one thing...for foreigners in Iceland, when you are going to get a refund for a purchase on one sales ticket, and if it is 5000ISK or more you must go to their customs to show the items first or the VAT window will not honor your claim...5000ISK is about 38.80 on today’s exchange rates.