PEPPOL IN EUROPE
E-Invoicing in Iceland
Iceland has implemented electronic invoicing in accordance with EU Directive 2014/55/EU. Since January 1, 2020, central and sub-central government agencies have been required to be able to receive and process electronic invoices. Suppliers invoicing the public sector must also submit their invoices electronically.
The implementation of e-invoicing is overseen by the Icelandic Ministry of Finance and Economic Affairs and receives operational support from the Icelandic Accounting Authority (FJS).
Iceland uses the national specification TS-236, which is based on Peppol BIS Billing 3.0. This aligns with the European standard EN 16931 while also taking into account specific Icelandic requirements.
There is currently no general requirement for electronic invoicing for B2B and B2C transactions. However, companies can voluntarily use the same infrastructure and the Peppol network, which further promotes e-invoicing outside the public sector as well.
Is e-invoicing mandatory in Iceland?
Yes. Since January 1, 2020, all central and sub-central government agencies must be able to receive and process electronic invoices. Suppliers invoicing the public sector are required to submit their invoices electronically. Paper and PDF invoices are not considered compliant electronic invoices for government contracts.
What were the key deadlines for e-invoicing in Iceland?
- January 1, 2015: The city of Reykjavík introduced electronic invoicing for suppliers, requiring the use of Peppol/TS-236.
- January 1, 2020: The requirement was extended to all central and sub-central government agencies. This made electronic invoicing mandatory for B2G transactions throughout Iceland.
Which transactions are covered by the requirement?
The requirement applies to B2G transactions. Suppliers invoicing Icelandic government agencies must submit their invoices electronically. There is currently no general requirement for B2B and B2C transactions. However, companies may voluntarily submit electronic invoices via the Peppol network.
What formats are used in Iceland?
Formats used for electronic invoicing include UBL 2.1 and CII (Cross Industry Invoice). For B2G e-invoicing, the national specification TS-236, based on Peppol BIS Billing 3.0, is used.
