The Icelandic Transport Authority: Registration plates
How do I register a car/vehicle out of circulation without handing in the license plates?
Cars/Vehicles may be temporarily withdrawn from circulation with a ticket, in which case a label bearing the words Notkun bönnuð (Use prohibited) is taped over the inspection label on the license plate, please see: https://island.is/en/skra-okutaeki-ur-umferd
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