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 provides an overview of the main obligations of permit holders under the provisions of this act and regulation.

Identification of taxis

• 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 total price must be identified with a license sticker issued by the Icelandic Transport Authority in the taxi's windshield.

• A taxi operating from a taxi station where more than one taxi has dispatch service shall be marked with the station’s emblem low in the centre of the front windshield. In addition, the station number shall be clearly visible in the upper left corner of the rear windshield.

Price meter or pre-agreed estimated total price

Certified taximeters shall be installed in all taxis that are hired for a price based on the distance travelled or the duration of the journey (not for pre-agreed total price).

It is permitted to drive without a taximeter when a journey is sold for a pre-agreed estimated or final total price. The operating permit holder or, if applicable, the taxi driver must be able to prove that the total price was agreed upon before the journey began.

Visibility of price list and license card

When driving according to the taximeter, the price list must always be visible and accessible to customers before entering the taxi and also inside the taxi.

When a journey is sold for a pre-agreed total price, the price list and the criteria on which the agreed total price 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 booked in advance for example through a website or an app, price information must be clearly displayed before the consumer orders the taxi 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 file

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 he himself is responsible for keeping this electronic file.

• If the taxi operating permit holder is registered with a taxi station this obligation may be delegated by the permit holder to the taxi station.

• 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.