Distillers Alcohol regulations in Iceland
How to import or export liquor and spirits to Iceland, how to register products and labels, the import duty and taxes, and how to get a licence to make alcohol there. Researched August 2026.
Research guide, not legal advice. Compiled in August 2026 from the public sources listed at the bottom of this page. Duty rates, fees and rules change often: confirm with the regulator, a customs broker or local counsel before you act. Spotted something out of date? Tell us.
- Status
- Legal
- Legal drinking age
- 20
- Legal purchase age
- 20
Free guide: the import licence, import duty and manufacturing licence sections are open to all. Sign in free to read the other 11 sections for Iceland in full.
Licence to make spirits (distillery and bottling)
- Licences needed
- Alcohol production licence (leyfi til framleiðslu áfengis í atvinnuskyni) and health inspection operating permit (starfsleyfi heilbrigðiseftirlits)
- Authority
- District Commissioner (Sýslumaður) and Municipal Health Supervisory Authority (Heilbrigðiseftirlit)
- Documents
- Application form, clean criminal background record, certificate of tax compliance, facility and production floor plans, HACCP/food safety system documentation, equipment descriptions, company registration certificate
- Fees
- Statutory administrative processing fees set by ministerial tariff (not confirmed exact current ISK figure)
- Time to obtain
- not confirmed
Import licence and registration
- Who can import
- Holders of a valid alcohol wholesale licence (áfengisheildsöluleyfi) for commercial resale; individuals for personal luggage allowance or declared personal import
- Licences or registrations
- Alcohol wholesale licence (áfengisheildsöluleyfi), customs registration with Skatturinn (Iceland Revenue and Customs), and local health inspection registration
- Authority
- District Commissioner (Sýslumaður) and Iceland Revenue and Customs (Skatturinn)
- Documents
- Application, company registration, tax compliance certification, proof of authorized storage/warehousing facilities, proof of health inspection notification
- Fees
- District Commissioner licence fee (not confirmed exact current ISK figure)
- Time to obtain
- not confirmed
Product and label registration
Required: no Process: There is no central government product or label registration mandate (like US TTB COLA). However, to sell products through the state retail monopoly ÁTVR (Vínbúðin), suppliers must enter into a formal Supply…
Import rules
Commercial imports must be cleared by a licensed domestic importer/wholesaler of record registered with Skatturinn. Shipments require commercial invoices, transport documentation, and standard certificates of origin where…
Import duty on spirits (HS 2208)
0% (spirits under HS heading 2208 are duty-free in the Icelandic customs tariff for most origins, including EEA and MFN partners).
Excise and taxes
Alcohol excise duty (áfengisgjald) on spirits is 192.85 ISK per centilitre of pure alcohol across the entire ABV range (Act No. 96/1995 on Alcohol Tax, as amended). Value Added Tax (VAT) on alcoholic beverages is 11% (standard…
Retail and distribution
The State Alcohol and Tobacco Company of Iceland (ÁTVR / Vínbúðin) holds a legal retail monopoly on off-premises sales of beverages over 2.25% ABV under Alcohol Act No. 75/1998 (limited direct sales are allowed on-site by…
Online sale and delivery
Restricted and legally contested: The Icelandic government and District Courts maintain that domestic online retail operations with domestic warehousing and delivery violate ÁTVR's exclusive retail monopoly under Alcohol Act No.…
Labelling
Complies with EU/EEA food information regulations (Regulation (EU) No 1169/2011) and spirit drinks rules (Regulation (EU) 2019/787). Mandatory items include legal sales denomination, nominal volume, alcoholic strength by volume…
Advertising
Strictly prohibited: Article 20 of Alcohol Act No. 75/1998 bans all advertising, marketing, and sponsorship promoting alcoholic beverages containing more than 2.25% ABV across all media (print, TV, radio, digital, outdoor, and…
Legal definitions of spirits
Iceland enforces EU spirit drink definitions via EEA integration (Regulation (EU) 2019/787): minimum ABV is 40% for whisky, 37.5% for rum, 37.5% for vodka, 37.5% for gin, 36% for brandy/wine spirits, and 96% distillation ABV for…
Dry or restricted areas
None (no dry municipalities exist in Iceland; distribution rules and ÁTVR monopoly coverage are uniform across the country).
Recent changes
In 2026, the Icelandic government formally affirmed to the EFTA Surveillance Authority (ESA) that domestic online alcohol sales involving domestic warehousing violate ÁTVR's state retail monopoly. Reykjanes District Court ruled…
Opportunities for exporters
Opportunities exist for premium distilled spirits, aged rums, single malt whiskies, and specialty craft spirits catering to Iceland's sophisticated consumer base and high tourist volume. Exporters must secure an Icelandic…
Read the full guide for Iceland, free
Product and label registration, excise, labelling, advertising, distribution and recent changes, with every source, plus an Excel file of every country. Sign in with your email: no password, no fee.
Sign in to read the full guideSources
- ÁTVR - Vínbúðin: Laws and Regulations / Supplier Information
- Skatturinn: Import Duty Charges, Customs Tariff, and Alcohol Taxation
- Alþingi: Áfengislög nr. 75/1998 (Alcohol Act)
- Nordic Alcohol and Drug Policy Network: Icelandic Government Response to ESA on Online Alcohol Sales (May 2026)
- Iceland Review: Court Ruling and Enforcement on Online Alcohol Retail (July 2026)
Selling into Iceland or buying from it?