Rules about taxis

Taxi driving is permit required activity and is subject to the Taxi Driving Act no. 120/2022 and taxi driving regulation no. 324/2023. The following is a discussion of the main obligations of licensees under their provisions.

Taxi identification

• Taxis must always be clearly identified so that there is no doubt that it is a taxi.

• A taxi that is driven according to a meter must be identified by a roof light.

• A taxi that is driven according to a pre-agreed estimated or final total fee must be identified with a license sticker issued by the Icelandic Transport Authority in the vehicle's windshield.

• A taxi operated from a taxi station where more than one vehicle is available must be identified with the station's logo in the lower center of the windshield and the station number, prominently, on the upper left side of the vehicle's rear window.

Fee meter or pre-agreed estimated total fee

Certified toll meters must be in all taxis that are driving for a fee that takes into account the distance traveled or the time the journey takes.

It is permitted to drive without a meter when a trip is sold for a pre-agreed estimated or final total fee. The taxi operating permit holder or, as the case may be, the taxi driver permit holder bears the burden of proof that an agreement has been reached regarding the total fee for the trip before it began.

Visibility of price list and license card

When driving according to the price meter, the price list must always be visible and accessible to customers before entering the vehicle.

When a trip is sold for a pre-agreed estimated or final total fee, the price list and the criteria on which the agreed total fee is based must be accessible to the customer so that it is clear how the pricing is determined. For example, when the service of a taxi is offered by order, e.g. on a website or in an applet, price information must be clearly displayed before the consumer orders a service.

The license card of the taxi operating permit holder or the taxi driver permit holder must always be visible in the taxi.

Obligation to keep an electronic record

An electronic file must be kept with satellite information about the starting and ending point of each sold trip by taxi.

• If the taxi operating permit holder works independently and does not drive for another taxi station, he himself is responsible for keeping this electronic file.

• This duty may be delegated by the permit holder to a taxi stand.

• An electronic file shall only be kept for the purpose of ensuring security and promoting consumer protection, and to monitor compliance with the law.

• It is not permitted to process location information for other incompatible purposes.

• The location information shall be encrypted and retained for 60 days from the date of the trip.

Taxi equipment

A taxi must meet the general requirements for cars according to traffic laws and regulations.

• A three-point seat belt must be worn in all seats of a taxi.

• A taxi must be equipped with a fire extinguisher and a first aid kit.

Registration of a taxi in the vehicle register

A taxi must be registered as such in the vehicle register.
The taxi operator permit holder must be the registered owner or occupier of the taxi.

Good business practices

The taxi operating permit holder is responsible for operating a taxi in accordance with good business practices.