Commission on an Iceland transfer is a payment the transfer provider makes to you, the agent, for selling the booking. It is normally built into the price your client sees, so the traveler does not pay a separate fee on top. There is no single published rate for Iceland transfers. The percentage, the timing and the payment method are set in a written agreement between you and the provider. This guide explains how it works and what to check, especially if you are an Irish agent with Irish VAT obligations.
TL;DR
- Commission is paid by the transfer supplier to the agent. It is part of the retail price, not an extra charge to the traveler.
- No official standard rate exists for Iceland transfers. Agree the percentage, the payment trigger and the payment date in writing.
- In Ireland, whether you act as a disclosed agent or as a principal changes how VAT applies to your earnings.
- Fixed prices make commission easier to calculate, because the amount does not move after booking.
- We work with travel agencies and tour operators on B2B bookings. Ask us for terms through the Irish agents guide or our quote form.
Table of Contents
- What commission on a transfer actually means
- Is there a standard commission rate in Iceland?
- Commission versus the transfer price
- Why fixed prices make commission simpler
- How commission is earned and paid
- Irish rules every agent should know
- What to look for in a transfer partner
- Perspective: why we keep commission simple
- What you can sell with us
- Checklist before you sign a commission agreement
- FAQ
- Sources
What commission on a transfer actually means
Commission is money a supplier pays to an intermediary for facilitating a sale. Tourism NI, the official tourism body for Northern Ireland, describes it as a standard cost of doing business: the supplier pays it to the travel agent and it is effectively taken out of the retail rate the tourist pays.
For an Iceland transfer, that means three parties:
- The traveler, who pays the retail price for the transfer.
- You, the agent, who sell it, handle the client and take your commission.
- The transfer provider, who runs the vehicle and driver and keeps the net amount.
The same Tourism NI guidance explains that the retail price typically includes the commission: the net rate plus the distribution cost. It also says commissions paid to third parties are distribution costs and should not be treated as a discounted rate. In practice this means your commission is not a discount for the client. The client sees one price.
Who pays it
The supplier pays. If you quote a client 45 USD per traveler for a Keflavík Airport to Reykjavík transfer, your margin comes out of the price arrangement you agreed with the provider, not from a surcharge added later. Anything that looks like an extra booking fee on the traveler's side should be disclosed to them clearly, and Irish consumer rules push you that way anyway (see below).
Is there a standard commission rate in Iceland?
No. We could not find an official or industry-wide figure for passenger transfers in Iceland, and quoting one would be guesswork. Rates depend on the provider, the product, the volume you send and whether you sell at a rate the provider publishes or at a net rate you mark up yourself.
What you can do is compare agreements on the same terms. Ask each provider:
- Is the commission a percentage of the retail price, or do I buy at a net rate and set my own margin?
- Is it calculated before or after taxes?
- Does it apply to the whole booking, including add-ons and waiting time?
- What happens to it when the traveler cancels or changes the booking?
- When is it paid, and how?
For our own B2B arrangements, terms are agreed with each partner directly. If you want to discuss them, use the quote form on our site and tell us the pick-up and drop-off points and your expected volume. A sales agent replies within 24 hours.
Commission versus the transfer price
It helps to keep two numbers apart.
| Item | What it is | Who sees it |
|---|---|---|
| Retail price | What the traveler pays, including your commission | Traveler, you, provider |
| Net rate | What the provider keeps after commission | You and provider |
| Commission | Retail price minus net rate, or an agreed percentage | You and provider |
The tax treatment depends on how you sell. Irish Revenue explains that a disclosed agent supplies an intermediary service to the principal, while an undisclosed agent's commission is embedded in the price at which they sell the service. So the same percentage can look quite different on paper depending on whether the client knows who the real supplier is.
A worked example
Take a group of four arriving at Keflavík. The published starting price for our private transfer to Reykjavík is from 45 USD per traveler, so the booking starts at 180 USD for the group (prices vary with the route and vehicle, so check the offer page for the exact figure). Suppose, for illustration only, that you agreed a 10% commission. That would be 18 USD on a 180 USD booking. The percentage here is an invented example, not an Easytransfer rate. The point is the mechanics: because the price is fixed, the commission is known the moment you book.
Why fixed prices make commission simpler
Commission on a price that can change is hard to forecast. If a provider adds fuel surcharges, waiting fees or late-night supplements after you have sold the trip, your margin shrinks or your client is surprised. Our pricing is fixed with no hidden fees, which means the number you quote is the number that applies. If you want the background, our guide to fixed price airport transfers in Iceland explains what that includes, and fixed price transfers and predictable costs shows why it matters when you plan a whole itinerary.
Flight tracking helps here too. When a flight lands late, we adjust the pick-up automatically. That avoids the awkward situation where a delay triggers a dispute about whether a no-show fee, and therefore your commission, applies.
How commission is earned and paid
The details sit in your agreement, but most arrangements follow one of these patterns:
- Earned on booking, paid after travel. The commission is confirmed when the booking is confirmed and paid once the transfer has taken place. This is the cleanest for both sides.
- Net rate model. You pay the provider the net rate and keep whatever you charged above it. There is no commission payment to chase, but you carry the collection risk from your client.
- Monthly statement. The provider totals completed transfers and pays commission in one batch.
Whichever you choose, get these points in writing:
- The trigger: confirmed booking, completed transfer, or paid invoice.
- Treatment of cancellations. We offer a full refund for cancellations made 24 hours before the transfer, so decide whether commission on a refunded booking is reversed.
- Currency. Our published prices are in USD, so if you invoice clients in euro, agree who bears the exchange-rate movement.
- The payment deadline after month end or after travel.
Irish rules every agent should know
This section is general information for Irish agents. For your own situation, speak to your accountant or Revenue directly.
Principal or agent?
The first question is whether you sell in your own name or in the provider's name. Revenue says an Irish agent should establish whether they act as a principal or an undisclosed agent, because the Travel Agent's Margin Scheme does not apply to an intermediary or disclosed agent. Undisclosed agents, who act in their own name, are treated similarly to principals, and under the scheme VAT is calculated on the margin rather than on the full price.
Disclosed agents and VAT on commission
A disclosed agent acts in the name and on behalf of the principal and tells the end customer so. For Irish agents in that position, Revenue says the service is the intermediary arrangement itself, and the agent is liable for Irish VAT on the commission earned if the place of supply is Ireland. Revenue's margin scheme guidance adds that an intermediary is generally taxable on commission earned for arranging services such as passenger transport.
The practical consequence: decide your model before you sign, and keep your invoices consistent with it.
Consumer protection
Ireland's consumer authority states that Irish travel agents and tour operators arranging overseas travel must be state bonded and must give customers a contract that sets out details such as cancellation arrangements, taxes and compulsory charges, and the complaints procedure. If your client's transfer is part of a wider package, check how it fits with the contract you issue.
The Icelandic side
Iceland's tax authority notes that tourism and travel-related services such as passenger transport are generally subject to VAT, with exemptions for things like public transport. Separately, Skatturinn says foreign companies selling taxable services in Iceland without a permanent establishment must appoint an Iceland-domiciled VAT representative. As an Irish agent selling a transfer that an Icelandic provider performs, you are usually dealing with a provider that is already registered locally, which is one reason to work with a provider based in Iceland. Check your own position with an adviser.
What to look for in a transfer partner
Commission matters, but a partner who creates complaints costs you more than a few percentage points. Here is what protects your margin and your reputation:
- Fixed, published pricing, so quotes stay valid.
- Instant booking confirmation, so you can tell your client right away.
- Flight tracking, so late arrivals do not become problems.
- 24/7 support, because Icelandic arrivals and departures happen at all hours.
- Licensed, English-speaking drivers and a fleet suited to the group, with vehicles up to 49 passengers.
- Clear cancellation terms, ours being a full refund up to 24 hours before.
If you are comparing providers, our pieces on what to weigh when choosing an alternative and professional airport transfers give you a checklist. Clients who want a lower-emission option may like our electric vehicle transfers, and for premium clients our guide to premium transfer services is a useful reference for what to expect.
Perspective: why we keep commission simple
We talk to a lot of agents, and the same worry comes up: will the number I quote today still be the number on the day of travel? That is why we price transfers at a fixed amount with no hidden fees. When the price does not move, commission is easy to calculate and easy to explain to your client.
Our view is that an agent's margin should never depend on the traveler being surprised. A Mercedes or Tesla waiting at Keflavík with the driver already tracking the flight, a confirmation that arrives instantly and support that answers at 3 a.m. are what keep your clients happy. Happy clients rebook through you.
We also think agents should have their terms in writing before the first booking. Ask us for the percentage, the payment trigger and the payment date, and we will answer within 24 hours. We cover the whole of Iceland, not only the airport and Reykjavík.
Sergiu
What you can sell with us
We offer private transfers throughout Iceland for individuals and groups, with premium vehicles (Mercedes, Tesla, Toyota), free onboard WiFi and flight monitoring. Published starting prices:
| Service | Starting price |
|---|---|
| Keflavík Airport (KEF) private transfer to or from Reykjavík, any group size | from 45 USD per traveler |
| Blue Lagoon private transfer from Reykjavík or Keflavík Airport | from 36 USD per traveler |
| Sky Lagoon private transfer from Reykjavík or Keflavík Airport | from 36 USD per traveler |
| Private Northern Lights evening tour | from 950 USD per group |
| Private Golden Circle Classic Tour with Kerið Crater | from 1550 USD per group |
| Private South Coast Tour with Vík and Black Sand Beach | from 1800 USD per group |
| Private Snæfellsnes Peninsula Tour | from 1950 USD per group |
See the full list on our private transfers page and the private day tours. For a route that is not listed, send us the pick-up and drop-off locations through the quote form.
If you arrange Iceland travel for clients and want to talk about B2B terms, request a quote on Easytransfer and a sales agent will get back to you within 24 hours.
Checklist before you sign a commission agreement
- Confirm whether you sell as a disclosed agent or in your own name, and what that means for VAT in Ireland.
- Write down the percentage or net rate, and what it applies to.
- Define when commission is earned and when it is paid.
- Agree what happens on cancellation, change or no-show.
- Agree the invoicing currency and who carries exchange-rate movement.
- Confirm who the traveler's contract is with and how the cancellation terms are shown to them.
- Check how your Irish bonding and contract obligations apply to the trip.
- Keep a copy of the agreement and every price confirmation.
FAQ
Who pays commission on an Iceland transfer?
The transfer provider pays it to the agent. It comes out of the retail price the traveler pays, so the traveler does not see a separate charge. The split between net rate and commission is agreed between you and the provider.
What is the usual commission percentage?
We found no official or industry-wide figure for Iceland passenger transfers, so we will not name one. Rates are agreed provider by provider, and they depend on volume and product. Ask for the percentage in writing before you sell.
Do I charge VAT on my commission in Ireland?
It depends on how you sell. Revenue says a disclosed agent is liable for Irish VAT on commission earned when the place of supply is Ireland, while agents acting in their own name fall under the principal-style rules and the margin scheme. Confirm your position with your accountant or Revenue.
What happens to my commission if the traveler cancels?
That is set by your agreement. Our travelers receive a full refund when they cancel at least 24 hours before the transfer, so agree in advance whether commission on a refunded booking is reversed. Putting it in writing avoids disputes.
Can I book a route outside Reykjavík and Keflavík?
Yes. We cover the whole of Iceland. Send your pick-up and drop-off locations through the quote form, and a sales agent replies within 24 hours.
Sources
- Pricing Your Tourism Business for Profit in Northern Ireland, Tourism NI
- Services of agents and intermediaries, Revenue Ireland
- Travel Agent's Margin Scheme, Revenue Ireland
- Trade regulations for Irish travel operators, CCPC
- Guidelines on VAT in the Tourism Industry, Skatturinn via island.is
- Value Added Tax, Skatturinn