Iceland (Peppol): Overview
Get an overview of the requirements for Iceland.
This country uses the PEPPOL BIS Billing 3.0 specification for e-invoicing.
PEPPOL BIS Billing 3.0 is based on the Universal Business Language (UBL 2.1) format and adheres to the European standard for e-Invoicing (EN 16931).
PEPPOL also has its own requirements that are defined on top of UBL.
For Vertex e-Invoicing, this means you can create your VRBL as usual, but you must be aware of the requirements for each of the following formats and networks:
| Format/Network | Documentation |
|---|---|
| VRBL | VRBL: Modeling Overview |
| EN-16931 | EN-16931: Modeling Overview |
| PEPPOL | Peppol: Modeling Overview |
Mandate
In Iceland, electronic invoicing is governed under the Public Procurement Act (Lög um opinber innkaup No. 120/2016) and Regulation 44/2019 (Reglugerð um rafræna reikninga vegna opinberra samninga), which transposed EU Directive 2014/55/EU into Icelandic law as an EEA member state.
Iceland operates a mandatory receiver-side and supplier-side B2G mandate requiring all state and municipal public entities to accept only structured electronic invoices for public contracts that meet or exceed official EEA/EU public procurement thresholds, currently:
- 143,000 EUR for central government supply and service contracts
- 221,000 EUR for sub-central authorities
- 443,000 EUR for utility procurement
- 5,538,000 EUR for public works
The B2G receiving mandate took effect on April 18, 2019, for state institutions and extended to local municipalities, municipal enterprises, and monopoly utility operators on April 18, 2020.
Furthermore, under the Ministry of Finance and Economic Affairs rules (Fjármála- og efnahagsráðuneytið), public sector entities strictly prohibit standard PDFs or paper invoices, forcing suppliers to transmit structured e-invoices.
For domestic B2B and B2C transactions, e-invoicing remains entirely voluntary and relies on mutual agreement between trading partners.
Description
Iceland utilizes a decentralized four-corner model anchored by the Peppol network.
The national Financial Management Authority (Fjársýsla ríkisins – FJS) acts as the official Icelandic Peppol Authority, overseeing access points and national compliance.
Transmitted invoices must comply with the European Standard on Electronic Invoicing (EN-16931), specifically supporting Peppol BIS Billing 3.0 and the Icelandic national Core Invoice Usage Specification, designated as TS 236 (published by Icelandic Standards, Staðlaráð Íslands), alongside standard UBL 2.1 syntax.
E-invoices must be securely archived for a minimum legal retention period of seven years.
Details
| Detail | Value |
|---|---|
| Official specification | PEPPOL BIS Billing 3.0 (based on Universal Business Language (UBL 2.1)) |
| Format | Peppol |
| Supports | B2G, B2B |
Restrictions
Vertex e-Invoicing does not support B2C for Iceland.
Updated 3 days ago