E-invoicing in Iceland: Peppol as standard, kennitala identifier and how eConnect supports you.
Iceland is not an EU member, but as a member of the European Economic Area (EEA), the country follows EU Directive 2014/55/EU on e-invoicing for public procurement. E-invoicing to Icelandic government bodies runs through the Peppol network, with the kennitala as an optional identifier. There is no B2B mandate.
Iceland has its own Peppol Authority: the Fjársýsla Íslands (FJS), the Financial Management Authority of the Icelandic government. Since 2022, Iceland has had an approved PASR (Peppol Authority Specific Requirements), although it is the lightest of all Peppol countries.
The PASR contains only one specific requirement: Icelandic end users may use the kennitala (national registration number) as a Peppol identifier under scheme 0196. This is optional, not mandatory. There are no additional requirements for information security, reporting, centralised services, or Service Provider accreditation.
The kennitala is Iceland's equivalent of a company registration number. It is a unique identification number for businesses and individuals, verifiable through the Icelandic Company Registry of the tax authority (skatturinn.is/fyrirtaekjaskra/). When invoicing an Icelandic recipient via Peppol, the kennitala is used as the Participant ID under EAS 0196.
Although Iceland is not an EU member, it is bound through the EEA Agreement to EU Directive 2014/55/EU, which mandates electronic invoicing for public procurement. This means Icelandic government bodies must be able to receive structured e-invoices conforming to European standard EN 16931.
Iceland is fully supported through the Peppol network:
Want to learn more about invoicing to Iceland through eConnect? Get in touch with our team.
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