Vehicles can be registered out of circulation with a ticket, in which case a label containing the inscription "Use prohibited pasted over inspectioin sticker of the license plate". When registering a vehicle out of circulation with a ticket, it should be beared in mind that insurance will not be cancelled, as will be the case if the license plates are handed in. The Police is also allowed to cut the license plates for the vehicles that have been registered as out of circulation with a ticket if it´s on public land, on streets or in a public parking space. Application and further information can be found here: https://island.is/en/skra-okutaeki-ur-umferd