E-invoicing compliance and regulatory updates - Iceland

Electronic Invoicing in Iceland

Is e-invoicing mandatory in Iceland ?

E-invoicing is mandatory for all public entities in B2G transactions but remains optional in B2B.

Who is affected?

All businesses transacting with public agencies in Iceland must send invoices in electronic format.

Compliance requirements

In B2G, all invoices must be sent in electronic format via the Peppol Network following the applicable format. In B2B, e-invoicing is voluntary and based on buyer consent.

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Key Deadlines 

• No upcoming deadlines

Standards & Platforms  

Platform

There is no national platform through which all invoices must be transacted. In B2G, Iceland requires the use of Peppol Network and the applicable format.

What formats are required in Iceland?

B2G e-invoices must follow the technical specifications implementing Peppol BIS 3.0. There are no specific format requirements for B2B invoices.

Archiving in Iceland

What are the archiving requirements in Iceland?

The minimum storage period is seven years. Electronic invoices may be stored abroad provided they are made available for auditing purposes and adequate controls and integrity assurance mechanisms are in place. The archive must be in a human-readable format.

Legal invoice:

• For suppliers: In B2G, a legal invoice is the invoice sent via Peppol in Peppol BIS 3.0 format. In B2B, the legal invoice is the invoice sent in the format agreed with the buyer.
• For buyers: In B2G, a legal invoice is the invoice received via Peppol in Peppol BIS 3.0 format. In B2B, the legal invoice is the invoice received in the format agreed with the buyer.

Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Key Actions  

Enable compliance: In B2G, issue electronic invoices. In B2B, discuss e-invoicing options with your business partners.

Archive properly: Store VAT e-invoices electronically for seven years.

Icelandic e-invoicing and archiving requirements at a glance:

Supplier requirement: In B2G, Icelandic suppliers must issue e-invoices in Peppol BIS Billing 3.0 format. In B2B, e-invoicing may be used if the buyer agrees.

Buyer requirement: In B2G, Icelandic buyers must be able to receive and process e-invoices that follow Peppol BIS 3.0. In B2B, buyers must consent to receiving e-invoices.

Archiving requirement: Invoices must be stored electronically for seven years.