Paying the Kilometre Fee and Reporting Vehicle Odometer Readings in Iceland

In Iceland, all vehicle owners are legally required to report their vehicle's odometer readings and pay a kilometre fee based on the distance driven. This system ensures that all vehicles contribute to road maintenance and infrastructure costs according to their usage. This comprehensive guide outlines the procedures for fulfilling these obligations, covering both vehicles permanently registered in Iceland and those temporarily imported into the country. Compliance involves interaction with official government portals like Ísland.is, the Icelandic Transport Authority (Samgöngustofa), and for temporary imports, Icelandic Customs (Skatturinn).

Understanding the Icelandic Kilometre Fee System

The Icelandic kilometre fee is a distance-based road-use charge applied to most vehicles operating within Iceland. Its primary purpose is to fund road infrastructure development and maintenance, shifting the burden from traditional fuel taxes to actual road usage. The fee is calculated per kilometre driven, and its specific rate can vary depending on the vehicle's type, weight, and energy source. Owners must regularly submit their vehicle's odometer readings to allow the authorities to accurately calculate the amount due.

This fee system necessitates two core actions from vehicle owners: periodic odometer reporting and timely payment of the calculated charge. The method for these actions differs significantly between vehicles permanently registered in Iceland and those temporarily brought into the country.

Key Authorities and Digital Platforms Involved

Several Icelandic governmental bodies and digital platforms play a crucial role in managing the kilometre fee and odometer reporting process:

• Ísland.is: The primary government service portal for citizens and businesses in Iceland. Many vehicle-related services, including odometer reporting for permanently registered vehicles, are accessible through your personal My Pages (Mínar síður) on Ísland.is. This platform requires digital authentication using a kennitala (Icelandic ID number) or electronic ID.
• Samgöngustofa (The Icelandic Transport Authority - ICETRA): The central authority responsible for vehicle registration, inspections, and traffic regulations in Iceland. Samgöngustofa oversees the vehicle register and collects odometer readings, often through inspection stations.
• Skatturinn (Icelandic Customs and Tax Authorities): Responsible for managing customs declarations and collecting fees for imported vehicles, including the kilometre fee for temporarily imported vehicles.
• Vehicle Inspection Stations: These stations conduct mandatory periodic vehicle inspections and often serve as points where odometer readings are officially recorded and submitted to Samgöngustofa.

Section 1: Kilometre Fee and Odometer Reporting for Permanently Registered Vehicles in Iceland

For vehicles with Icelandic registration plates, the process is streamlined, primarily involving digital submissions or reporting during mandatory vehicle inspections.

Who Needs to Report and Pay?

The registered owner of any vehicle with Icelandic plates is responsible for reporting odometer readings and paying the associated kilometre fee. This applies to private individuals, companies, and public entities.

Prerequisites for Reporting

Before you can report your odometer reading or manage payments, ensure you have:

• Icelandic Digital ID: Strong electronic identification (e.g., Ísland.is app, Auðkenni, e-ID) linked to your kennitala.
• Vehicle Information: Your vehicle's registration number and potentially its chassis number.
• Current Odometer Reading: The exact reading from your vehicle's odometer.

Reporting Odometer Readings for Registered Vehicles

The odometer reading for permanently registered vehicles is typically submitted annually, either digitally through Ísland.is or automatically recorded during a compulsory vehicle inspection.

It is crucial to submit accurate readings, as these form the basis for calculating your kilometre fee.

Calculating and Paying the Kilometre Fee for Registered Vehicles

The kilometre fee for permanently registered vehicles is calculated based on the reported odometer readings and typically charged monthly. The payment process is usually integrated with existing tax and fee collection mechanisms.

The fee is charged for the distance driven since the last recorded reading. Samgöngustofa or the relevant tax authority will calculate the amount due based on the rates applicable to your specific vehicle type and weight class. Payments are typically handled automatically through direct debit or accessible via your Ísland.is My Pages, where you can view your bills and make payments.

What Happens Next? (Registered Vehicles)

After submitting your odometer reading and paying the fee:

• Compliance: Your vehicle will be considered compliant with the kilometre fee regulations for the reported period.
• Digital Record: The odometer reading and payment history are recorded in the national vehicle register, accessible via your Ísland.is My Pages.
• Annual Cycle: The process repeats annually, ensuring continuous monitoring of road usage and fee collection.

Section 2: Kilometre Fee and Odometer Reporting for Temporarily Imported Vehicles

Vehicles authorized by Icelandic Customs for temporary use in Iceland are also subject to a kilometre fee. The process is distinct from permanently registered vehicles, involving specific steps upon arrival and departure.

Who Needs to Pay for Temporary Imports?

The individual who receives authorization from Icelandic Customs (Skatturinn) for the temporary import of the vehicle is responsible for paying the kilometre fee. This typically applies to tourists, temporary residents, or individuals bringing vehicles into Iceland for a limited period.

Understanding the Temporary Import Fee Structure

For temporarily imported vehicles, the kilometre fee structure depends on the vehicle's weight and the estimated length of stay:

• Shorter Stays (30 days or less): A fixed driving fee is charged based on the estimated length of stay. This fixed fee is a full payment for vehicles under 10 tonnes staying for 30 days or less.
• Longer Stays (more than 30 days): The fee is based on the actual distance driven in the country, calculated from odometer readings upon arrival and departure. Any fixed driving fee paid upon arrival will be deducted from the final amount.
• Heavier Vehicles (10 tonnes or more): A kilometre fee based on distance driven is always charged, regardless of the length of stay.

Process for Temporarily Importing a Vehicle and Managing the Kilometre Fee

The process involves several stages, from pre-arrival to departure.

Fixed Driving Fees for Shorter Stays (Under 10 tonnes, 30 days or less)

For vehicles weighing 3.5 tonnes or less, and motorcycles (400 kg or less), staying for 30 days or less, the following fixed fees generally apply upon arrival. These fees are a full payment for the specified duration.

Length of Stay	Vehicles (3.5 tonnes or less)	Motorcycles (400 kg or less)
10 days or less	13.900 ISK	8.300 ISK
11-20 days	20.850 ISK	12.450 ISK
21 days or more	24.325 ISK	14.525 ISK

Note: These figures are provided as examples from the inputs and should always be verified against the most current official information on Ísland.is.

Special Considerations for Temporary Imports

• Registering Domicile: If you register legal domicile in Iceland within 12 months of your vehicle's arrival, you face a critical decision: you must either complete full customs clearance for the vehicle (including all import charges) or export the vehicle from Iceland before your domicile registration takes effect. Failing to do so can lead to significant penalties.
• Customs Broker: For complex imports or if you require assistance, a customs broker can help with completing the E-9 form and navigating the customs process.

Exporting the Vehicle and Final Settlement

At the end of your temporary stay (within 12 months), you must:

1. Book Transport: Arrange for the vehicle's transport out of Iceland.
2. Notify Customs Broker: Inform the customs broker who handled the import of your departure plans. They will assist with submitting the final settlement of your customs declaration to Iceland Revenue and Customs (Skatturinn).
3. Record Odometer Reading and Pay: Record the vehicle's odometer reading upon leaving Iceland. This is done by reopening your E-9 declaration online and entering the departure reading. The final kilometre fee, based on the driven distance (minus any pre-paid fixed fee), will then be charged to a credit card.

Required Documents and Information Checklist

Having the correct documents and information readily available will significantly streamline the odometer reporting and kilometre fee payment process, regardless of whether your vehicle is permanently registered or temporarily imported.

• For Ísland.is (Registered Vehicles):
  • Valid Icelandic electronic ID (e.g., Ísland.is app, Auðkenni)
  • Your kennitala (Icelandic ID number)
  • Vehicle registration number
  • Current, accurate odometer reading
• For Temporarily Imported Vehicles (Customs):
  • Passport or other valid photo ID of the person responsible for the import.
  • Proof of vehicle ownership/registration from the country of origin.
  • Green Card (International Motor Insurance Card) or other valid insurance documentation for Iceland.
  • Booking number for vehicle transport to Iceland.
  • Completed E-9 declaration form (Temporary import of a vehicle with foreign registration plates).
  • Current, accurate odometer reading upon arrival.
  • Current, accurate odometer reading upon departure.
  • Valid credit card for payment of fees.
  • Email/SMS from Icelandic Customs regarding registration and payment instructions.
• General:
  • Any official decision letters or correspondence from Samgöngustofa or Skatturinn.
  • Payment receipts for any prior kilometre fees or fixed driving fees.

Common Pitfalls and How to Avoid Them

Navigating vehicle regulations can be complex. Be aware of these common issues to ensure a smooth process:

1. Ignoring Notifications: Failure to respond to emails or SMS messages from Customs or Ísland.is regarding odometer readings or fees can lead to late penalties or legal issues. Always check your official communication channels.
2. Incorrect Odometer Readings: Submitting an inaccurate odometer reading, whether accidental or intentional, can result in incorrect fee calculations, requiring corrections and potentially fines. Double-check your reading before submission.
3. Missing Departure Reporting for Temporary Imports: Forgetting to log your odometer reading upon departure for temporarily imported vehicles can lead to unresolved fee obligations and complications with future entries to Iceland.
4. Confusing Fixed Fee with Full Payment (Temporary Imports): For vehicles under 10 tonnes, the fixed driving fee only covers stays of 30 days or less. If you stay longer, a distance-based fee applies, and the fixed fee is just a deduction, not full payment.
5. Domicile Registration and Vehicle Import Status: If you temporarily import a vehicle and then register legal domicile in Iceland, you must immediately address the vehicle's import status (either full customs clearance or export) within 12 months. Neglecting this can lead to severe import duties and penalties.
6. Outdated Fee Rates: Kilometre fee rates and fixed driving fees can change. Relying on old information can lead to underpayment. Always verify current rates on official Ísland.is or Skatturinn pages.
7. Not Keeping Payment Proof: Always retain receipts and confirmations for any kilometre fee payments, especially for temporary imports, as proof of compliance.
8. Assuming Digital Confirmation is Final for All Steps: While many steps are digital, some situations might require physical actions or further verification. For example, vehicle inspections provide an official reading, which is then digitally processed.
9. Vehicle Weight Miscalculation: For temporary imports, the distinction between vehicles under 10 tonnes and 10 tonnes or heavier is critical for fee calculation. Ensure you know your vehicle's correct weight.
10. Delaying Form E-9 Completion: For temporary imports, the E-9 declaration must often be completed before the vehicle arrives in Iceland for smooth customs clearance. Delays can cause significant hold-ups.

What Happens Next After Reporting and Payment?

Once you have successfully reported your odometer reading and paid the kilometre fee, your primary obligation for that period or length of stay is typically fulfilled.

• For Permanently Registered Vehicles:
  • Your vehicle's status in the national vehicle register will be updated to reflect compliance with the kilometre fee.
  • You will receive a digital confirmation via Ísland.is.
  • The cycle repeats annually, with new reminders for subsequent readings and payments.
• For Temporarily Imported Vehicles:
  • Upon final payment at departure, your E-9 declaration will be settled, concluding your temporary import authorization regarding the kilometre fee.
  • This ensures a clear record for any future visits to Iceland with the same or another vehicle.

In both cases, maintaining a compliant status is crucial for legal operation of your vehicle on Icelandic roads. Non-compliance can lead to fines, refusal of vehicle registration services, or other administrative penalties. If you encounter any delays or believe there's an error in your calculation or status, promptly contact the relevant authority (Samgöngustofa for registered vehicles, Skatturinn for temporary imports).

Official Sources and Further Verification

Always refer to the official Icelandic government sources for the most accurate and up-to-date information regarding the kilometre fee and odometer reporting.

• General Information on Kilometre Fee: For comprehensive details on the kilometre fee system in Iceland, including rates and regulations, visit the official Ísland.is page:
  • Kilometre fee on vehicles
• Temporary Import Specifics: For detailed procedures and fee structures related to vehicles temporarily imported to Iceland, including the E-9 declaration, consult:
  • Kilometre fee on vehicles temporarily imported to Iceland
  • Temporary import of a vehicle with foreign registration plates
• Road Use Information: The Vegir okkar allra website may provide additional context on road funding and usage charges:
  • Vegir okkar allra
• Vehicle Inspections: For information on vehicle inspections, which often include odometer recording:
  • Vehicle inspection
• General Vehicle and Driving Information: For a broader overview of vehicle and driving services in Iceland:
  • Vehicles and driving (Ísland.is)
• Icelandic Transport Authority (Samgöngustofa): The official authority overseeing transport matters:
  • Icelandic Transport Authority