The Icelandic Transport Authority: Registration plates
What can I do if the license plate has been cut off my car?
If it the license plate was cut off due to inspection, you must have the license plate sent to the vehicle inspection post/inspection station where you want to take the car/vehicle for inspection. When the car/vehicle has been inspected, the license plate will be handed over. If the license plate was cut off due to a insurance issue the car/vehicle must be insured, then the owner can retrieve the license plate where they are in storage. You just need to correct the reason why the license plate was cut off.
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