Iceland

Iceland is a small but highly digital market. Its central government has required e-invoices from suppliers for many years, and the national e-invoicing infrastructure is built on Peppol, which makes it easy for both domestic and foreign suppliers to connect.

In B2B trade, e-invoicing is voluntary but widely used. Many Icelandic companies exchange structured invoices through local service providers, and the shared Peppol standard means invoices can move between businesses and the public sector in the same format.

Iceland is not an EU member, so the ViDA package does not apply to it directly. As an EEA member, however, it follows EU rules on public procurement, and its businesses trade closely with Nordic and EU partners that are moving towards structured e-invoicing

Suppliers to Icelandic central government bodies must send e-invoices, including foreign suppliers. Other public bodies must be able to receive e-invoices under the EEA rules, and many also ask suppliers to send them.

There is no legal obligation for businesses to issue e-invoices in B2B trade. In practice, many large Icelandic buyers prefer or require structured invoices from their suppliers.

Invoices to central government must be structured and meet the European standard EN 16931. They must include the buyer's reference details, and they must be sent over Peppol or through a service provider that can reach the government's receiving address. Paper and PDF invoices can be rejected.

For B2B invoices, the general Icelandic VAT rules on invoice content apply. Businesses that choose to send e-invoices need the recipient's Peppol ID or e-invoicing address.

The standard format is Peppol BIS Billing 3.0, used for both public-sector and B2B invoicing. Iceland has its own national specification aligned with Peppol.

Invoices are exchanged over the Peppol network through certified Access Points, and Icelandic service providers connect businesses to the network. This lets foreign suppliers reach Icelandic buyers without a local operator.

HubBroker connects your ERP to Peppol so you can invoice Icelandic public and private buyers in Peppol BIS 3.0. We map your invoice data, add the required references and validate every invoice before sending.

Inbound invoices from Icelandic suppliers arrive in your ERP as structured data, ready to post, and HubBroker's IDP converts any PDF invoices.

For Nordic groups, the same HubBroker connection covers Denmark, Norway, Sweden and Finland, giving you one e-invoicing setup across the region