Faktúrur

Faktúrur are documents issued by a seller to request payment for goods or services supplied. They serve as a financial record for the transaction and as the basis for accounting, taxation, and cash flow planning. In Icelandic business practice, faktúrur are commonly used in both domestic and cross-border trade and may be issued in paper or electronic form.

A typical faktúra includes a unique sequential number and date; names and addresses of the supplier and customer; the supplier’s VAT number if registered; a clear description of goods or services; quantity, unit price, and net amount; VAT rate and VAT amount (when applicable); the total payable; currency; payment terms and due date; and payment instructions such as bank details and reference numbers. Additional information may include order numbers, delivery dates, and terms of delivery.

Tax and regulatory context: In Iceland, taxable invoices must show VAT amounts and VAT rate, and be compliant with VAT rules administered by the Skatturinn (Icelandic Tax Authority). Invoices are used for VAT credit and deduction. Businesses are generally required to keep copies of faktúrur for a prescribed period for audit purposes.

Practical considerations: Accuracy is essential to avoid disputes; invoicing software and electronic formats are widely used to improve reliability and record-keeping. Invoices may include late payment penalties or interest terms, and they provide an auditable trail for financial reporting.