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Icelandic public authorities must be able to receive structured e-invoices, and the Icelandic state generally requires electronic invoices from its suppliers. Domestic B2B e-invoicing remains voluntary.
E-invoicing is already required for invoices relating to purchases by the Icelandic state.
Electronic invoicing is well established in Iceland, particularly in public procurement. Since January 2020, public authorities have been required to receive and process structured electronic invoices that comply with the European e-invoicing standard.
Although Iceland does not have a general statutory B2G supplier mandate, the Icelandic state generally requires its suppliers to submit structured electronic invoices. Domestic B2B e-invoicing remains voluntary.
Icelandic public authorities are required to receive and process compliant structured electronic invoices. Suppliers invoicing the Icelandic state should follow the electronic invoicing requirements of the relevant public authority, as the state generally accepts structured electronic invoices rather than PDFs or paper invoices.
There is no general mandatory B2B e-invoicing regime for transactions between private businesses. Electronic invoices may be exchanged voluntarily.
Public authorities in Iceland must be able to receive and process structured electronic invoices compliant with the European standard EN 16931. The Icelandic state generally requires suppliers to submit structured electronic invoices in accordance with its invoicing procedures.
Invoices can be exchanged through the Peppol network or supported electronic invoicing service providers. Iceland uses Peppol BIS Billing 3.0 and the national technical specification TS-236.
A PDF sent by email does not meet the structured e-invoicing requirements used by the Icelandic state.
Electronic invoices to the Icelandic state must be provided in a structured, machine-readable XML format. Invoices can be transmitted through electronic message brokers or through the Peppol network.
Icelandic public-sector implementations also use specifications aligned with the European EN 16931 standard and Peppol BIS. This enables structured invoice data to be exchanged and processed automatically rather than relying on PDFs or other unstructured documents.
iEDI supports e-invoicing in Iceland. We can help businesses connect their existing ERP and business systems to the electronic invoicing infrastructure used in Iceland, including Peppol connectivity, without replacing the systems they already use.
Talk to us about your Icelandic e-invoicing requirements and how iEDI can help automate the exchange of structured invoice data.
Iceland does not have a general statutory B2G supplier mandate, but public authorities must be able to receive and process structured electronic invoices. The Icelandic state generally requires its suppliers to submit structured e-invoices. There is no general mandatory B2B e-invoicing regime for private businesses.
Last reviewed: 30 October 2026
The information on this page is provided by iEDI for general guidance on electronic invoicing requirements, mandates, deadlines and technical standards. It does not constitute legal, tax or regulatory advice.
Regulations and implementation timelines may change. Businesses should verify current requirements with the relevant national authorities or qualified advisers before making compliance decisions.
Connect your existing systems to the required e-invoicing infrastructure and prepare for compliance without replacing the ERP and business systems you already use.
