Getting started
RSK 5.02: registering as an employer and for VAT
Before you send your first invoice, Skatturinn needs to know you have started a business. The notification is called RSK 5.02 and today it is mostly electronic. Here is what it does, when it must be in and what to have ready.
- Updated
- Sources reviewed
- Tax year
- 2026
RSK 5.02 is the notification to Skatturinn that a business has started. It puts you on the employer register, so you can pay yourself calculated remuneration and file withholding tax and social security, and, where relevant, on the VAT register once turnover exceeds 2,000,000 ISK in any 12 months. The notification must arrive no later than 8 days before activity begins, and registration for both registers is now electronic at skattur.is.
Key figures
- Deadline
- no later than 8 days before activity begins
- Mandatory VAT registration
- turnover above 2,000,000 ISK in 12 months
- Channel
- electronic at skattur.is with electronic ID
- Closing a business
- RSK 5.04
What RSK 5.02 does
The form notifies Skatturinn of two things, which you can choose together or separately:
- Employer register (launagreiðendaskrá). As a self-employed person you are your own employer. Registration lets you pay yourself calculated remuneration, file the monthly withholding return and pay social security. Without it you cannot settle tax on your own salary.
- VAT register. Mandatory when taxable turnover exceeds 2,000,000 ISK in any 12-month period. On registration you receive a VAT number, add 24% or 11% to invoices and file a VAT return every two months. Those selling exempt services (for example healthcare or teaching) do not register.
The same notification is used to change a registration, for instance when calculated remuneration or your category changes. When the business ends you file RSK 5.04.
The 8-day rule
Skatturinn requires notification no later than 8 days before activity begins. In practice: send the notification before you do the first job or issue the first invoice, not when the first payment arrives. Processing can take several days, and a VAT number must exist before you add VAT to an invoice.
What to have ready
| Field | What you need to know |
|---|---|
| ID number and address | your own for a sole proprietorship |
| Description of the activity | a short, clear description of what you sell; it drives the category and VAT treatment |
| Start date | when the activity begins |
| Calculated remuneration | the monthly salary you pay yourself, at least the reference amount |
| Category | class A–H in Skatturinn's calculated-remuneration rules |
| Pension fund | which fund you pay into |
| VAT | whether you request registration, expected turnover and VAT rate |
Electronic registration step by step
- Log in to skattur.is with electronic ID.
- Choose the application for the employer register and/or the VAT register.
- Fill in the activity, start date, calculated remuneration and category.
- Submit and keep the confirmation with your basic business records.
- Watch your island.is mailbox; Skatturinn sometimes asks for more information before approving.
Once approved you can file the first withholding return and, if VAT-registered, the first VAT return. See the tax calendar for due dates.
Common mistakes
- Working first, registering later. Skatturinn can estimate salary and taxes retroactively and add surcharges.
- Registering too low a calculated remuneration. The minimum depends on your category. Too low a figure is corrected at assessment.
- Forgetting to deregister. While the registration is active Skatturinn expects returns and VAT reports. File RSK 5.04 when you stop.
- Assuming a service provider registers you. Fustle and other providers do not register you with Skatturinn; you do that yourself.
Where Fustle comes in
Once registered, you record work and create invoices in Fustle. In Payroll, Fustle calculates withholding, social security and pension on the payments using the year's parameters and prepares the returns you follow up on. Start with the first invoice.
Frequently asked questions
Do I need RSK 5.02 if I only send one invoice?
If you sell your work as a contractor you need to be on the employer register to pay yourself calculated remuneration and file withholding, even for a single job. Exceptions are limited to very low amounts that Skatturinn specifies in its calculated-remuneration rules. If unsure, contact Skatturinn before sending the invoice.
Can I register for VAT below the 2 million threshold?
Yes, you can apply for voluntary registration if the activity is taxable. You then add VAT to invoices and can deduct input VAT on purchases. The filing duty comes with it.
Do I need special credentials to file?
Returns are filed at skattur.is. Personal electronic ID is sufficient for a sole proprietorship on your own ID number.
How do I change calculated remuneration after registering?
With a new notification to Skatturinn. Calculated remuneration can be lowered or raised during the year if circumstances change, but it may not go below the category minimum without a justification Skatturinn accepts.
Sources
- Skatturinn — launagreiðendaskráskatturinn.is/atvinnurekstur/ad-hefja-rekstur/launagreidendaskra/
- Skatturinn — rafræn umsókn um VSK-skrá og launagreiðendaskráskatturinn.is/um-rsk/frettir-og-tilkynningar/umsokn-um-skraningu-a-vsk-skra-og-launagreidendaskra-nu-rafraen
- Skatturinn — eyðublöð og tilkynningar við upphaf rekstrarskatturinn.is/atvinnurekstur/ad-hefja-rekstur/eydublod---tilkynningar
- Skatturinn — skráning á virðisaukaskattsskráskatturinn.is/atvinnurekstur/virdisaukaskattur/skraning-a-vsk-skra
- Skatturinn — reiknað endurgjald 2026, viðmiðunarflokkarskatturinn.is/atvinnurekstur/stadgreidsla-og-reiknad-endurgjald/reiknad-endurgjald/2026/reiknad-endurgjald-2026
- Lög um staðgreiðslu opinberra gjalda nr. 45/1987althingi.is/lagas/nuna/1987045.html
- Lög um virðisaukaskatt nr. 50/1988althingi.is/lagas/nuna/1988050.html
General information, not advice on your situation. Skatturinn and other authorities assess each case. Check the review date and sources before relying on a figure.
Related content
- Getting startedStarting out: seven steps to your first invoiceSeven steps from idea to first invoice: legal form, RSK 5.02, category and calculated remuneration, pension fund, VAT, invoicing system and the first withholding return. For anyone starting self-employment in Iceland.
- TaxesCalculated remuneration is not your invoice total.Understand reiknað endurgjald, how it differs from invoice income and where to find current official guidance for your business.
- VATValue added tax (VAT) for the self-employedValue added tax for the self-employed in Iceland: when registration becomes mandatory (2,000,000 ISK turnover), when 24% or 11% applies, what is exempt, how input VAT is deducted and the VAT return due dates.
- TaxesWithholding tax: monthly filing on your own salaryHow a self-employed person in Iceland files withholding tax on calculated remuneration: what the return contains, due date on the 1st and final due date on the 15th of the next month, surcharges, wage statements and how withholding is settled at assessment.
- Figures and datesTax calendar for the self-employed in IcelandEvery deadline the self-employed in Iceland need in 2026: withholding tax and social security by the 15th of each month, VAT every two months, pension contributions, wage statements and the annual tax return.
Where does Fustle fit in?
Record the work and create the invoice. The service you choose determines the support included.