How do you import a car from Japan to Iceland, and what does it cost? (2026)
Last reviewed by AVON INTERNATIONAL CO., LTD., licensed USS member dealer (card L-1525)
Iceland has 0% car customs duty but a CO2-based excise (vörugjald) that is the dominant cost, plus 24% VAT on top. Using engine cc as a CO2 proxy, vörugjald is ~24% of value for a small petrol car, ~38% mid, ~60% for a large SUV (statutory cap 70%). With VAT compounding, total landed tax is ~54% of CIF for a small car and 100%+ for a large SUV — a duty+VAT-only model understated this by 25–65 points.
Car import duty calculator for Iceland
Japan's auction stock is right-hand drive. We do not convert steering. For Iceland we can only source the limited left-hand-drive cars that come up at Japanese auctions, mostly European and American imports, so choice is narrow and prices are higher than for ordinary Japanese stock.
Vehicles arrive at the Port of Reykjavik, Iceland's only significant vehicle entry point. The cost structure differs from EU markets: import charges include excise duty, 24% VAT, a recycling fee and additional processing charges for batteries and tyres. Iceland is an EEA member but not an EU customs union member, so its tariff rules are its own — duty can be low or zero depending on the vehicle's HS classification, but the excise and recycling charges mean the full tax load deserves careful calculation.
Can you import a used car from Japan to Iceland?
- Steering
- Left-hand drive only
- Age limit
- Iceland drives on the RIGHT (LHD). No simple age cap. Import charges are the CO2-based excise (vörugjald) + 24% VAT + recycling/processing fees. RHD imports are enthusiast-only.
- Inspection
- Customs clearance; vehicle inspection (Frumskoðun); registration.
- Special rules
- Vörugjald is capped at 70% of the customs value; a missing-CO2 default (0.12×kerb-kg + 50 g/km) applies if no emission figure is supplied.
- Entry ports
- Reykjavik
How do you import a car from Japan to Iceland, step by step?
Check the import rules
Iceland drives on the RIGHT (LHD). No simple age cap. Import charges are the CO2-based excise (vörugjald) + 24% VAT + recycling/processing fees. RHD imports are enthusiast-only. Iceland requires left-hand-drive vehicles, so ordinary right-hand-drive Japanese stock cannot be registered there.
Buy the car and obtain the export certificate
After purchase in Japan the car's registration is cancelled and an export certificate is issued. An English translation of it is needed for customs and registration in Iceland.
Complete the required inspection
Required for Iceland: Customs clearance; vehicle inspection (Frumskoðun); registration.
Ship to Reykjavik
Cars from Japan arrive at Reykjavik. Sea transit is about 45–65 days. The shipping line issues the bill of lading, which customs needs for the entry.
Lodge the customs entry and pay the taxes
A licensed clearing agent lodges the import declaration with the invoice, bill of lading and export certificate. Customs assesses Excise and VAT; the rates are in the duty table on this page.
Register the car
After customs release and payment of port charges, the car is registered and plated by Iceland's vehicle registration authority.
What import duties and taxes does Iceland charge?
| Tax | Rate | Charged on |
|---|---|---|
| Excise (vörugjald, estimated from engine size) | 24%–60% by engine size | CIF value |
| VAT (24%) | 24% | CIF + duty + earlier taxes |
Excise (vörugjald, estimated from engine size)
Rate: 24% up to 1,500 cc; 38% up to 2,500 cc; 60% above 2,500 cc. Charged on: CIF value.
VAT (24%)
Rate: 24%. Charged on: CIF + duty + earlier taxes.
Iceland charges excise duty and 24% VAT on imported vehicles, along with a recycling fee and battery/tyre processing charges. Import duty can be low or zero depending on the car's HS tariff code, but the total charge including excise and VAT is typically meaningful and should be calculated before committing.
How much does it cost to import a car from Japan to Iceland?
Worked examples are not shown for this market. Use the calculator below with your own car.
How long does shipping take, and which ports?
| Port | Method | Transit (days) | Freight from (sedan) |
|---|---|---|---|
| Reykjavik | RoRo or container | 45–65 | US$2,950 |
Which cars from Japanese auctions can be registered in Iceland?
- Models and prices
Ford Explorer
Sold new in Japan with left-hand drive, so used Explorers turn up in Japanese stock from time to time.
- Models and prices
Porsche Cayenne
Some Cayennes were sold new in Japan with left-hand drive and resurface in Japanese used stock in small numbers.
- Models and prices
Cadillac SRX
An American SUV sold new in Japan with left-hand drive; examples appear in Japanese used stock occasionally.
- Models and prices
Mercedes-Benz S-Class
Left-hand-drive S-Class cars sold new in Japan appear in Japanese used stock, mostly older examples.
How much is inland delivery to cities in Iceland?
| City | From port | Sedan | SUV / wagon | Extra days |
|---|---|---|---|---|
| Reykjavik | Reykjavik | US$150 | US$190 | 1 |
| Akureyri | Reykjavik | US$290 | US$360 | 2 |
| Keflavik | Reykjavik | US$160 | US$200 | 1 |
| Selfoss | Reykjavik | US$170 | US$210 | 2 |
How do you avoid scams when buying a car from Japan?
- Check that the exporter is a registered Japanese company: look up its corporate number and address, and prefer members of the Japan Used Motor Vehicle Exporters Association.
- Ask for the original auction sheet and, after purchase, the export certificate. Both name the chassis number, which should match the invoice.
- Pay only to a company bank account in the exporter's name, never to a personal account or a money-transfer agent.
AVON INTERNATIONAL company and licence details are on the About page, and the JUMVEA member list is public. JUMVEA (exporters association) · About AVON INTERNATIONAL · Is buying a car from Japan safe?
Frequently asked questions
- Is there an age limit to import a car from Japan to Iceland?
- No — Iceland has no fixed age cap for vehicle imports. The car must clear Icelandic customs, pass the local vehicle inspection and complete registration formalities before it can be driven.
- What taxes do I pay to import a car from Japan to Iceland?
- Iceland charges excise duty, 24% VAT on the imported value, a recycling fee and battery/tyre processing charges. Import duty can be low or zero depending on the HS classification.
Car import duty calculator for Iceland
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Estimate only. Duties are assessed by customs on arrival, freight rates move, and rules change. Check current figures before you buy.