The total turnover of enterprises in activities that are subject to VAT amounted to 749 billion ISK in the period of July to August 2016, which is an increase of 13% compared to the same period in 2015. The total turnover was 7% higher in the period September 2015 to August 2016 compared with the previous 12 months.
At the time of our previous press release, in September, the VAT turnover in May to June 2016 was estimated 750.4 billion ISK which was an increase of 7% compared to the same period in 2015. At present, more data are available and the VAT turnover in May to June 2016 is estimated 752.0 billion ISK which is an increase of 8% compared to the same period in 2015.
| Turnover | ||||||
| July-Aug. 2015 | July-Aug. 2016 | % | Sep. 2014-Aug. 2015 | Sep. 2015-Aug. 2016 | % | |
| Total | 663,311 | 749,020 | 13% | 3,750,069 | 4,027,776 | 7% |
| 01/02 Agriculture and forestry¹ | 2,255 | 2,680 | 19% | 46,034 | 50,690 | 10% |
| 03/10.2 Fishing, aquaculture; fish processing | 64,811 | 56,177 | -13% | 393,702 | 365,132 | -7% |
| C Manufacturing excluding 10.2, fish processing | 107,616 | 121,763 | 13% | 723,377 | 672,328 | -7% |
| D/E Electricity, gas; water supply; sewerage and waste management | 26,801 | 25,169 | -6% | 171,060 | 162,901 | -5% |
| F/B Construction, mining and quarrying | 34,817 | 51,987 | 49% | 184,829 | 249,591 | 35% |
| G Wholesale and retail trade; repair of motor vehicles and motorcycles | 216,041 | 222,294 | 3% | 1,195,810 | 1,258,709 | 5% |
| H Transportation and storage² | 81,324 | 94,209 | 16% | 360,707 | 422,609 | 17% |
| I Accommodation and food service activities | 35,417 | 42,527 | 20% | 127,410 | 155,506 | 22% |
| J Information and communication | 27,052 | 28,262 | 4% | 172,149 | 190,784 | 11% |
| L Real estate activities | 11,471 | 13,365 | 17% | 62,846 | 74,239 | 18% |
| M Professional, scientific and technical activities | 20,604 | 22,241 | 8% | 135,861 | 153,886 | 13% |
| N Adminstrative and support service activities² | 20,093 | 49,196 | 145% | 88,507 | 165,729 | 87% |
| Other fields of activity | 15,008 | 19,150 | 28% | 87,777 | 105,673 | 20% |
| ¹Most farmers report VAT every 6 months. Hence data in two-month buckets are not a good indicator of changes in agriculture. | ||||||
| ²Since the beginning of this year, some economic activities are no longer exempt from VAT, e.g. travel agencies (section N) and certain types of passenger transportation (section H). | ||||||
Since the beginning of this year, some economic activities are no longer exempt from VAT, e.g. travel agencies (in section N) and certain types of passenger transportation (in section H). The increased turnover in these sections is partly due to these changes. However, there is also a real increase in turnover for these activities.
Another change at the beginning of this year was that alcoholic beverages were moved from the higher VAT-step to the lower, coinciding with an increase in the excise tax on alcohol. The VAT-turnover is published net of VAT and therefore the transition from one VAT-step to another does not affect the figures. However, the excise tax is included in “VAT-turnover net of VAT” so the excise tax increase leads to an increase in the VAT-turnover of alcoholic beverages. The higher excise tax therefore leads to an increase in the categories “wholesale and retail trade” and “Accommodation and food services”.