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Iceland has steadily developed its e-invoicing framework as part of its broader digital transformation efforts. The country has made e-invoicing mandatory for public sector transactions and is actively encouraging adoption in the private sector.
Iceland’s e-invoicing system aligns with European standards, facilitating secure and efficient transactions for businesses of all sizes. By leveraging Peppol and other standardized invoicing protocols, Iceland ensures interoperability with international trading partners while reducing administrative costs for local businesses.
Regulatory authority
The Directorate of Internal Revenue (RSK) oversees e-invoicing implementation.
E-invoicing requirements
Since January 1, 2021, all public sector suppliers must issue e-invoices. B2B e-invoicing remains voluntary but is increasingly adopted.
Accepted invoice formats
Invoices must be issued in UBL XML or Peppol BIS format.
Transmission channels
Invoices must be submitted through the Icelandic eInvoicing System or Peppol.
Digital signatures
Digital signatures are optional.
Archiving requirements
Invoices must be stored for seven years.
How B2B e-invoicing works in Iceland
Businesses generate invoices in UBL XML or Peppol BIS format and submit them through Peppol-certified networks.
How B2G e-invoicing works in Iceland
Invoices must be submitted through the Icelandic eInvoicing System, validated by public entities, and archived for seven years.
