The Icelandic Transport Authority: Registration plates
When do you need to use a spare number when towing a trailer?
Towing another vehicle that is not obligated to registration and that overshadows the towing vehicle's license plate, must be marked at the rear with an additional license plate that has the same color as the towing vehicle's license plate. The same applies if equipment on the back of a vehicle obliged to registration that is being driven obscures its license plate.
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