People Failing to Pay VAT on iPads Get Criminal Record Skip to content

People Failing to Pay VAT on iPads Get Criminal Record

If a traveler who enters the country is fined ISK 50,000 (USD 397, EUR 307) or higher for passing through the green gate with declarable goods, he or she will get a criminal record with the Icelandic police authorities.

keflavikairport_ipaFrom Keflavík International Airport. Photo copyright Icelandic Photo Agency.

The latest iPad costs USD 829, of which ISK 26,724 must be paid in VAT in Iceland. If a traveler passes through the green gate with such an iPad that was purchased abroad and fails to declare it, the double import levy plus a 15 percent markup must be paid.

This amount exceeds the ISK 50,000 limit and so one iPad suffices to get people a criminal record, Fréttablaðið reasons.

However, according to the State Prosecutor, such records will not appear when people are asked to demonstrate a clean criminal record when applying for a job, for example.

These regulations have remained unchanged since 2008. At the same time the króna has depreciated by more than 30 percent with the accompanying cut to the price of non-declarable purchases abroad.

Fines for violating the laws on customs remain accessible in criminal records to the courts, Ministry of the Interior, Ombudsman of Alþingi (the parliament), Directorate of Prisons and the Directorate of Immigration.

Access to criminal records can also be requested by foreign authorities due to trials, applications for citizenship or driver’s license.

According to information from the Ministry of Finance, Finance Minister Katrín Júlíusdóttir is seriously considering whether the maximum price limit of non-declarable goods should be reconsidered.

ESA

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