E-Invoicing in Iceland

Malaysia is entering a new era of digital tax compliance with the phased rollout of a mandatory e-invoicing regime. Under the MyInvois platform, businesses must submit invoices for real-time validation by the tax authority, ensuring legal compliance before issuance. To stay ahead, companies should ensure their systems are ready to meet Malaysia’s structured e-invoicing requirements.

Country Situation

General Description

Iceland has implemented e-invoicing in full alignment with EU Directive 2014/55/EU, making B2G e-invoicing mandatory for all central and sub-central public authorities since 1 January 2020. The initiative is overseen by the Ministry of Finance and Economic Affairs and operationally supported by the Icelandic accounting authority (FJS). Iceland applies its own national extension, TS-236, based on Peppol BIS Billing 3.0, ensuring compliance with the European Norm (EN 16931) while accommodating local requirements.

While B2B and B2C e-invoicing are not yet compulsory, the same infrastructure is available for voluntary use, supporting broader digitalisation across the economy.

FAQs

Is e-invoicing mandatory in Iceland?

Yes. Since 1 January 2020, all Icelandic central and sub-central public authorities are required to receive and process structured e-invoices. For suppliers, it is mandatory to issue e-invoices when invoicing the public sector. Paper or PDF invoices are not accepted for public procurement.

Who manages e-invoicing in Iceland?

The Ministry of Finance and Economic Affairs oversees e-invoicing policy, while the Icelandic accounting authority (FJS) is responsible for its operational implementation in the public sector. In addition, Icelandic Standards (IST) manages national standardisation and the Icelandic CIUS (TS-236) for Peppol BIS Billing 3.0.

What were the key deadlines for e-invoicing in Iceland?

The City of Reykjavík introduced mandatory electronic invoicing for suppliers on 1 January 2015, requiring compliance with Peppol/TS-236. From 1 January 2020, this mandate was extended to cover all central and sub-central public authorities, making B2G e-invoicing compulsory nationwide.

Which transactions are covered by the mandate in Iceland?

The mandate applies to all B2G transactions, meaning suppliers to Icelandic contracting authorities must issue invoices electronically. B2B and B2C transactions are not currently mandated, but businesses may voluntarily adopt e-invoicing via Peppol.

How does cross-border e-invoicing work in Iceland?

Cross-border suppliers to Icelandic public authorities must also submit structured electronic invoices. Icelandic public entities are required to receive these invoices via Peppol, ensuring compliance with EN 16931 and TS-236. For cross-border B2B and B2C transactions, e-invoicing is not mandated, but can be used voluntarily if agreed by trading partners.

How long must invoices be archived?

Invoices must be stored for at least seven years. Archiving may take place within Iceland, anywhere in the EU, or in a country with which Iceland has a mutual administrative tax agreement.

Does Iceland use a national platform for e-invoicing?

Iceland does not operate a single national e-invoicing platform. Instead, all transactions are processed through the Peppol network. Suppliers can connect via an accredited access point, or use the e-invoicing portal provided by the Icelandic accounting authority (FJS).

Country Specs

Mandate Status	Mandatory
Mandate Scope	B2G
Model Type	Interoperability / Post-Audit
Government Entity	The Ministry of Finance and Economic Affairs
Formats	UBL 2.1, CII (Cross Industry Invoice)
Infrastructure / Platform	Peppol
E-signature Required	No
Key Deadlines	1 Jan 2015: City of Reykjavík mandated the use of structured e-invoices compliant with Peppol/TS-236. 1 Jan 2020: Full B2G receiving mandate introduced for all central and sub-central authorities, based on Regulation 44/2019 and the FJS declaration.
AR Mandatory	B2G: Yes. All suppliers to public authorities must issue e-invoices. B2B: No
AP Mandatory	B2G: Yes. Mandatory for contracting authorities. B2B: No
Peppol Available	Yes
Domestic Transactions	B2B: No B2G: Yes
Cross-border Transactions	B2B: No B2G: Yes
Archiving Period	7 Years
Archiving Abroad	Yes. This is allowed under certain conditions.

Contact an expert

Feeling lost or need more info about this e-invoicing mandate? ecosio can help!

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