Well , i think it´s a similar situation when buying from USA (however for Amazon.com (USA) doesn't say price includes VAT (But Amazon.com offers foreigners outside of USA to Handle the VAT and add it to the original price when you checkout from the store).Hjalti,
Inside the EU, you dont have to pay any taxes.
So, for Iceland, yes. You will have to pay customs for that, and you will have the specific tax for that. Vat is only applicable in Europe, I guess in Iceland the name will be different.
From my point of view, on your situation. I would focus on buying from USA and not from Europe : You will have to pay always customs and probably on USA, electronics goods will be cheaper.
Or join the EUVery valid point.
By the way, something I haven't covered. If VAT is only applicable in Europe, when you buy something from Europe, you should ask for deduct that tax from the price and pay your customs tax on Iceland. Example : For these hard drives, you should pay 119€ -19% Germany VAT = 100€ + shipping.
The same applies when people buy stuff here on Madrid and lives in Switzerland. They can recover VAT expenses from all invoices.
Very valid point.
By the way, something I haven't covered. If VAT is only applicable in Europe, when you buy something from Europe, you should ask for deduct that tax from the price and pay your customs tax on Iceland. Example : For these hard drives, you should pay 119€ -19% Germany VAT = 100€ + shipping.
The same applies when people buy stuff here on Madrid and lives in Switzerland. They can recover VAT expenses from all invoices.
That's correct but that's normally applicable for business not for individuals (you will have to pay the corresponding taxes on your country, it is not " a discount").That will work also only if you have a company with a Valid VAT number B2B not B2C