You need an embassy visa for Vanuatu if you have an Icelandic passport
Visa options for Vanuatu
Visitor visa
Travelers need a visa to visit Vanuatu for Business or Tourism. A paper or embassy visa is the only visa available for travelers visiting Vanuatu. The visa is typically a stamp or sticker added to the passport. Travelers must obtain this visa from a local embassy, consulate or visa center before traveling.