E-invoicing has been mandatory for public sector transactions in Iceland since 2015, marking a significant step toward digitalization. More recently, Iceland has aligned with broader European standards through its adoption of the Peppol network, facilitating structured invoice exchange both domestically and cross-border. These developments reflect Iceland’s commitment to increasing efficiency, transparency, and interoperability in fiscal processes.
In this framework, B2Brouter operates as an authorized Peppol Access Point, enabling businesses and freelancers to comply with Icelandic regulations and send invoices in approved formats. The system ensures legal validity, secure delivery, and compliance with national standards set by the Ministry of Finance and Economic Affairs.
As Iceland continues its digital transformation, understanding current e-invoicing obligations and upcoming changes is essential. In the next sections, we will outline the most relevant dates, key legislation, and how to prepare your invoicing process to stay compliant in the Icelandic market.
Important dates
2023
Iceland's digital strategy emphasized increased competitiveness by ensuring public sector data is accessible and in usable formats, reinforcing the importance of e-invoicing.
2025 (Preliminary)
Continued efforts are expected to further integrate e-invoicing practices within the private sector, although no mandatory B2B e-invoicing regulations have been announced.
Legislation
- Mandatory B2G invoicing
Since 2015, public entities in Iceland are required to receive electronic invoices from suppliers.
- VAT compliance
E-invoices must reflect Icelandic VAT rules as outlined by the Directorate of Internal Revenue (RSK).
- Invoice validation
Invoices are subject to automated checks through Peppol to ensure compliance and completeness.
- Digital signature
Although not mandatory, electronic signatures are accepted to enhance authenticity and integrity.
- Peppol Authority role
FJS, as the Peppol Authority, certifies Access Points and enforces technical and procedural standards.
Accepted formats
Invoices must comply with EN 16931 and be formatted in Peppol BIS Billing 3.0 or compatible XML.
Delivery channels
Invoices must be sent via the Peppol network or through certified service providers.
Regulating authority
The Financial Management Authority (FJS) supervises e-invoicing compliance and Peppol access in Iceland.
Send e-invoices to Iceland securely with B2Brouter
Seamless Peppol access
Connect directly to Iceland’s public sector through our certified Peppol Access Point.
Compliant invoice formats
Create and send invoices in Peppol BIS Billing 3.0 and XML, aligned with local standards.
Automatic validation
Ensure each invoice meets Icelandic legal requirements before sending, reducing rejections.
Secure invoice delivery
Send invoices securely via the Peppol network, with tracking and delivery confirmation.
Certifications
B2Brouter is certified with the ISO 27001 standard on information security management, certified as a Peppol Access Point Service Provider and a member of the EESPA.
