E-Invoicing in Iceland: Complete guide

Electronic invoicing in Iceland is aligned with European digital invoicing standards and relies on the Peppol network for public sector transactions. Suppliers working with Icelandic public authorities must issue structured electronic invoices that comply with the European standard EN 16931.

Although electronic invoicing between private companies remains voluntary, businesses operating in Iceland increasingly adopt structured e-invoices to improve efficiency and ensure interoperability with government systems.

For multinational companies trading with Icelandic public entities, connecting to the Peppol network is therefore essential. Marosa can support organisations by enabling Peppol e-invoicing connectivity in Iceland and ensuring invoices comply with the required technical and regulatory standards.

Regulatory Framework for E-Invoicing in Iceland

Iceland has implemented the European e-invoicing standard EN 16931, which establishes a common structured format for electronic invoices in public procurement across Europe.

This framework ensures that electronic invoices are: structured and machine-readable, interoperable across systems and suitable for automated processing.

In Iceland, the European standard is implemented through Peppol BIS Billing 3.0, the format used for exchanging invoices via the Peppol network.

To ensure consistent implementation, Iceland has also developed a national specification known as TS-236, which defines how the European standard is applied in the country.

B2G E-Invoicing in Iceland: Peppol

Electronic invoicing is mandatory for suppliers invoicing public sector entities in Iceland since 2020. Iceland has adopted a B2G e-invoicing mandate based on the Peppol network. Accordingly, Government bodies must be able to receive and process e-invoices that comply with the European e-invoicing standard.

Companies supplying goods or services to the public sector must issue e-invoices and transmit them through the Peppol network. The Icelandic Financial Management is the country's Peppol Authority since 2020.

For suppliers participating in public procurement contracts, the ability to send compliant Peppol invoices is therefore a key operational requirement.

Iceland adopted B2G e-invoicing through Peppol network.

E-Invoicing Formats Used in Iceland

Electronic invoices exchanged in Iceland must comply with structured formats aligned with the European e-invoicing standard. The most commonly used formats include Peppol BIS Billing 3.0 and the national CIUS, TS-236, which defines how Peppol BIS Billing 3.0 is implemented. TS-236 includes conditional rules for domestic transactions and aligns with national tax and accounting laws.

These formats allow invoices to be automatically processed by accounting systems and enable seamless data exchange across the Peppol network.

The Role of the Peppol Network in Iceland

Iceland uses the Peppol network as the primary infrastructure for exchanging electronic invoices with public authorities.

Peppol operates using a four-corner model, where invoices are transmitted through accredited Peppol Access Points. This framework enables secure and standardised invoice exchange between businesses and government entities.

Through Peppol, companies can send electronic invoices that comply with Icelandic requirements while maintaining interoperability with other European markets.

B2B E-Invoicing in Iceland

Electronic invoicing between private businesses (B2B transactions) is currently not mandatory in Iceland. Companies may exchange electronic invoices if both parties agree to use this format. However, invoices must still comply with general legal requirements regarding: authenticity of origin, integrity of content, and readability of the invoice.

Businesses can ensure these requirements are met through methods such as:

• advanced electronic signatures
• secure electronic data interchange (EDI)
• internal business controls that ensure reliable audit trails

Although voluntary, the adoption of e-invoicing in the private sector is increasing as companies digitise their accounting and procurement processes.

How MAROSA Supports Peppol E-Invoicing in Iceland

For companies trading with Icelandic public authorities, Peppol connectivity is essential in order to submit compliant electronic invoices. Marosa enables businesses to implement Peppol e-invoicing in Iceland, helping organisations to:

• connect to the Peppol network
• issue invoices compliant with Peppol BIS Billing 3.0
• exchange invoices with Icelandic public sector entities
• streamline cross-border invoicing processes

By leveraging Peppol infrastructure, businesses can simplify compliance while improving the efficiency and automation of their invoicing processes.

In conclusion, e-invoicing in Iceland is closely aligned with European standards and relies on the Peppol network for public sector transactions. Suppliers working with Icelandic public authorities must issue structured electronic invoices that comply with the EN 16931 standard and Peppol BIS Billing 3.0.

While B2B e-invoicing remains voluntary, adoption continues to grow as companies digitise their invoicing processes.

For multinational organisations operating in Iceland, connecting to the Peppol network is therefore an important step in ensuring compliance. Solutions such as those provided by MAROSA enable businesses to exchange electronic invoices efficiently and meet Iceland’s e-invoicing requirements.