Iceland Drops BII Invoices — PEPPOL BIS 3.0 Only from July 2026
Starting July 1, 2026, the Icelandic government will only accept PEPPOL BIS 3.0 validated documents. The older BII invoice formats (BII04/BII05, also known as TS136 and TS137) will no longer be accepted.
This is a significant change — BII invoices still account for roughly 50% of all electronic invoices exchanged in Iceland today.
What’s being retired
The BII (Business Interoperability Interfaces) formats have been in use since 2013. While they served their purpose, they lack the validation depth and data richness of the newer PEPPOL BIS 3.0 standard:
| Format | Standard | Status after July 1 |
|---|---|---|
| BII04 (TS136:2013) | Invoice | No longer accepted |
| BII05 (TS137:2013) | Credit Note | No longer accepted |
| PEPPOL BIS 3.0 Invoice | EN 16931 | Required |
| PEPPOL BIS 3.0 Credit Note | EN 16931 | Required |
Why this matters
If your Business Central setup still sends BII-format invoices to government entities, those invoices will be rejected after July 1. No grace period has been announced.
The 50% figure is striking — it means half of all businesses exchanging invoices electronically in Iceland are still on the old format. Many may not be aware they need to upgrade.
Who is affected
- Any business sending electronic invoices to Icelandic government bodies, municipalities, or public institutions
- Businesses whose ERP or invoicing software defaults to BII format
- Companies using older PEPPOL Access Point configurations that haven’t been updated
What you need to do
If you’re using Centara eMessaging
Centara eMessaging always sends PEPPOL BIS 3.0 — no configuration needed. Install the extension and you’re compliant.
If you’re using another solution
- Contact your PEPPOL Access Point provider
- Ask them to confirm you’re sending BIS 3.0 format
- Request a test transmission to verify compliance
- Update before July 1 — don’t wait for rejections
The bigger picture
This is part of Iceland’s alignment with the European eInvoicing Directive (2014/55/EU). The EU has been pushing member states and EEA countries toward EN 16931 as the single standard for public procurement invoicing.
Other Nordic countries have already completed similar transitions:
- Norway mandated PEPPOL BIS 3.0 for B2G in 2019
- Denmark requires OIOUBL (aligned with EN 16931)
- Sweden mandated PEPPOL BIS 3.0 for B2G in 2019
Iceland is catching up, and B2B mandates are expected to follow — likely in 2027 or 2028.
Timeline
| Date | What happens |
|---|---|
| Now | Check your invoice format |
| April 2026 | Test with government recipients |
| July 1, 2026 | BII invoices rejected |
| 2027–2028 | B2B mandate expected |
Need help?
If you’re not sure whether your invoices are BIS 3.0 compliant, or if you need to upgrade from BII, get in touch. We can typically get you upgraded in a single day.