eInvoicing Documentation

eInvoicing in Iceland

Responsible	Ministry of Finance and Economic Affairs
Legislation	Regulation 505/2013 on electronic billing, electronic accounting, messaging, message services, storage of electronic data and minimum requirements for electronic accounting and accounting systems. Regulation 44/2019 on electronic billing in public procurement. Mandating public authorities to accept invoices compliant to EN 16931. Declaration by city of Reykjavík. As of 1 January 2015, the City of Reykjavík, including all its organizations, will only accept invoices that are in electronic format compliant to an EN 16931 CIUS (TS-236). Declaration by Icelandic Accounting Authority (FJS). As of 1 January 2020, the Icelandic Government, including all its organizations, will only accept invoices that are in electronic format compliant to an EN 16931 CIUS (TS-236).
Transposed the Directive 2014/55/EU	YES
Mandatory for	Receiving and processing: Central, regional and local contracting authorities Submitting: Economic operators
B2B mandate	NO
Monitoring mechanism	NO
Standard(s)	The European standard on eInvoicing is fully implemented under UBL 2.1 and CII.
Platform	Peppol eDelivery Network
Use of CIUS and Extensions	YES Peppol BIS Billing 3.0 (includes seller country rules relevant for Iceland)

Legislation

In January 2020, the Icelandic Ministry of Finance and Economics transposed EU Directive EU/55/2014 through Regulation 44/2019 by requiring all public entities on national and sub-central levels to be able and willing to receive and process electronic invoices (eInvoices) based on Technical Specification TS-236 published by Icelandic Standards, which implements the Peppol BIS Billing 3.0 in Iceland.

National regulation 505/2013 stipulates the requirements for content and transmission of eInvoices to ensure the authenticity and traceability required by tax and accounting legislation. The regulation also defines the framework for establishing eInvoicing exchange between trading parties. The regulation applies to invoices in any digital format for both public and private organisations.

eInvoicing platform and eInvoicing management solutions

Since 2020, Iceland is a Peppol Authority represented by the Icelandic Accounting Authority (FJS) on behalf of the Ministry of Finance and Economic affairs.

The eInvoicing platform used in Iceland is the Peppol eDelivery Network.

Approach for receiving and processing eInvoices

There is a distinction made between the central and the sub-central levels. All public authorities have to follow the guidelines of the Regulation 44/2019. Within the B2G context, all public contracting authorities are mandated to receive and issue electronic XML invoices. In 2022, about 92% of B2G received invoices were electronic and in XML format, as the law allows certain industries to use paper invoices. All issued invoices were electronic. There is no plan to make electronic invoicing mandatory for B2B and B2C, but the usage of eInvoices is widespread in B2B and B2C procurement. Within the B2B environment, the buyer’s consent is needed for receiving eInvoices.

eInvoicing implementation in sub-central level contracting authorities

eInvoicing has not been implemented at the sub-central level.

Status on the implementation of the European Standard on eInvoicing (EN)

The EN is fully implemented through the usage of Peppol BIS Billing 3.0, which contains additional country rules applicable to domestic trade.

Use of Core Invoicing Usage Specifications (CIUS) at national level

TS-236 is the technical specification that implements Peppol BIS Billing 3.0 in Iceland. TS-236 is published by Icelandic Standards, which defines the Peppol BIS Billing 3.0 as the relevant CIUS for compliance to the EN 16931 in Iceland. The Peppol BIS Billing 3.0 CIUS as published by Peppol contains conditional rules that only apply for domestic sellers or when both seller and buyer are located in Iceland.

Digital reporting requirements

In Iceland, eInvoicing is not currently used for Valued Added Tax (VAT) digital reporting. TS-236 contains national specifications that support Icelandic VAT invoice legislation and other national business practices.

Additional information

There is no specific national eInvoicing strategy but the digital strategy for Iceland includes as policy objective the ‘increased competitiveness with emphasis on that public sector data be accessible and in usable format’[1]. In addition, the strategy for sustainable procurement emphasises the advantage of the use of data for contracting. eInvoice data is collectively used by the Central Procurement Agency for analysis and preparation of procurement contracting.

The B2G invoice data is published on the website ‘Government Invoice Open Data’, where certain data is published and downloadable.

[1] (Digital policy, 2023)

Are you aware of further developments on eInvoicing B2G in this country? Contact us via email EC-DIGITAL-BUILDING-BLOCKS@ec.europa.eu.

You can also access the 2016, 2017, 2018, 2019, 2020, 2021 and 2023 eInvoicing Country Sheets via the eInvoicing User Community.

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Last updated: Jun 28, 2024 18:12

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