Iceland (IS) Peppol E-Invoicing Guide

Overview

Iceland operates within the Peppol network for electronic invoicing, governed by the Directorate of Internal Revenue (Ríkisskattstjóri, RSK). As a member of the European Economic Area (EEA), Iceland has aligned its e-invoicing framework with EU Directive 2014/55/EU, requiring public sector buyers to receive structured electronic invoices. Suppliers transacting with Icelandic government entities must deliver invoices in a machine-readable format over the Peppol network. The Clearvo API handles format generation, endpoint resolution, and document delivery — no separate tax engine is required.

Mandate and Timeline

Iceland's B2G e-invoicing mandate requires all invoices addressed to central government contracting authorities to be submitted electronically in a structured format. This obligation has been in force for central government entities and has progressively expanded to cover regional and local authorities. Voluntary adoption is active in the B2B space, with structured invoicing increasingly expected by larger Icelandic buyers. There is currently no legislated B2B mandate, but market-driven adoption continues to grow alongside Peppol network expansion in the Nordic and EEA regions.

Format and Network

Iceland uses Peppol BIS Billing 3.0 as its standard e-invoice format, based on the EN 16931 European Norm. Documents are delivered over the 4-corner Peppol network via AS4 messaging protocol. The EAS (Electronic Address Scheme) identifier for Iceland is 0196, which maps to Icelandic kennitala (national registration numbers) used by both companies and individuals. Endpoint identifiers follow the pattern 0196:<kennitala>, where the kennitala is a 10-digit number. The standard VAT rate in Iceland is 24%, with a reduced rate of 11% applicable to specific goods and services. The functional currency is ISK (Icelandic Króna).

Required Fields

The following fields are mandatory for a valid Iceland Peppol BIS 3.0 invoice:

• Invoice number — unique identifier within the supplier's system
• Issue date and due date in ISO 8601 format (YYYY-MM-DD)
• Currency — must be ISK for domestic transactions
• Buyer reference — purchase order number or contract reference supplied by the buyer
• Supplier details — legal name, Icelandic kennitala (taxId), registered address, and Peppol endpoint (0196:<kennitala>)
• Buyer details — legal name, kennitala or buyer identifier, registered address, and Peppol endpoint (0196:<identifier>)
• Line items — each line must include a description, quantity, unit price in ISK, tax code (S for standard rate), and VAT rate (24 or 11)
• Tax totals — VAT amount and taxable base per tax category

Icelandic kennitala values are 10 digits and must be valid for both supplier and buyer where applicable.

Integration Example

Send an Iceland invoice via the Clearvo API with a single POST request:

curl -X POST https://api.clearvo.io/v1/invoices \
  -H "Authorization: Bearer $CLEARVO_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "country": "IS",
    "documentType": "invoice",
    "invoiceNumber": "IS-INV-2026-001",
    "issueDate": "2026-06-16",
    "dueDate": "2026-07-16",
    "currency": "ISK",
    "buyerReference": "PO-2026-001",
    "supplier": {
      "name": "Clearvo Technologies Ltd",
      "taxId": "5012131440",
      "taxIdCountry": "IS",
      "address": { "street": "Austurstrati 1", "city": "Reykjavik", "postalCode": "101", "country": "IS" },
      "endpointId": "0196:5012131440",
      "endpointSchemeId": "0196"
    },
    "buyer": {
      "name": "Iceland Buyer AS",
      "taxId": "BUYERIS001",
      "taxIdCountry": "IS",
      "address": { "street": "Buyer Street 1", "city": "Reykjavik", "postalCode": "101", "country": "IS" },
      "endpointId": "0196:BUYERIS001",
      "endpointSchemeId": "0196"
    },
    "lines": [
      { "description": "Software consulting services", "quantity": 5, "unitPrice": 1000, "taxCode": "S", "vatRate": 24 },
      { "description": "Platform subscription annual", "quantity": 1, "unitPrice": 3600, "taxCode": "S", "vatRate": 24 }
    ]
  }'

Clearvo resolves the buyer's Peppol endpoint via SMP lookup on 0196:BUYERIS001, generates a compliant BIS 3.0 XML document, and delivers it over AS4.

Key Rules

• EAS scheme 0196 is the only valid Peppol scheme for Iceland; do not use GLN or VAT-based schemes for Icelandic participants.
• Kennitala format: supplier kennitala must be exactly 10 digits; validate before submission to avoid SMP lookup failures.
• Currency: ISK has no decimal subdivision in practice — unit prices and totals should be whole numbers to avoid rounding issues in downstream systems.
• VAT codes: use S (standard, 24%) or AA (reduced, 11%); exempt supplies use E with a valid exemption reason code.
• B2G routing: government buyers are registered in the Peppol SMP; confirm endpoint registration before go-live by performing an SMP lookup against the production SML.
• No tax engine required: Clearvo transmits the tax values you supply — VAT calculation and rate determination remain the responsibility of the calling application.

Related country guides

• Norway — Peppol BIS 3.0, EHF B2G mandatory
• Denmark — Peppol BIS 3.0, OIOUBL B2G mandatory
• Sweden — Peppol BIS 3.0, Svefaktura B2G mandatory