Italy e-Invoicing Guide

Italy requires e-invoicing for domestic B2B, B2G and B2C transactions. The Sistema di Interscambio (SDI), operated by the Agenzia delle Entrate, is the central platform through which these invoices pass before they reach the recipient.

The system uses the FatturaPA XML format. Under Italy's clearance model, an invoice counts as issued only once SDI has checked it and returned a delivery receipt or a notice of failed delivery; an invoice SDI rejects is treated as never issued.

Italy's rollout began with B2G in June 2014 for ministries, tax agencies and social security bodies, and reached every public administration on 31 March 2015. B2B e-invoicing started on 1 July 2018 for motor fuel supplies and subcontractors on public contracts, and B2B and B2C followed for VAT-registered businesses on 1 January 2019. Flat-rate taxpayers (regime forfettario) were initially exempt: those with revenue above EUR 25,000 joined on 1 July 2022 and the rest on 1 January 2024.

Version 1.9.1 of the SDI technical specifications, published on 31 March 2026, has been usable since 15 May 2026. From 1 January 2027 two consolidated codes apply: the VAT code (Legislative Decree 10/2026), whose Article 77 restates the SDI obligation, and the tax penalties code (Legislative Decree 173/2024). The EU authorisation behind Italy's mandate, Council Implementing Decision (EU) 2024/3150, runs until 31 December 2027.

VAT-registered businesses resident or established in Italy must issue electronic invoices through SDI for domestic B2B, B2G and B2C transactions, except for healthcare services to final consumers, which must not go through SDI. Invoices must be in the FatturaPA XML format and include the recipient's Codice Destinatario (7-character routing code) or PEC (certified email address) for delivery.

Cross-border transactions were historically excluded but are now subject to reporting through the Esterometro replacement (TD17-TD19 document types via SDI). Flat-rate taxpayers have been included in the mandate since January 2024. Parties the law already dispensed from invoicing, such as small agricultural producers, remain exempt.

Italy uses a centralised clearance model. The seller submits the FatturaPA XML to SDI, which validates the invoice format and data, then routes it to the recipient via their registered Codice Destinatario or PEC address. SDI sends delivery notifications back to the sender confirming receipt.

If SDI rejects an invoice due to validation errors, the sender receives a rejection notification and must correct and resubmit. The Agenzia delle Entrate uses the invoice data to prepare draft VAT registers, periodic VAT settlements and annual VAT returns for eligible VAT operators. Businesses can access their received invoices through the "Fatture e Corrispettivi" portal.

An invoice between Italian parties that is issued outside SDI counts as not issued. The supplier faces the penalty in Article 6 of Legislative Decree 471/1997, 70% of the VAT for taxable operations with a minimum of EUR 300, and the customer cannot deduct the VAT. Omitted or incorrect data on cross-border operations draws EUR 2 per invoice, up to EUR 400 a month, halved if the correct data is sent within 15 days. From 1 January 2027 the invoice penalty sits in Article 31 of the consolidated tax penalties code, at the same 70% rate and EUR 300 minimum.