Italy e-Invoicing Guide

Italy was the first EU member state to mandate e-invoicing for all domestic transactions, covering B2B, B2G, and B2C. The Sistema di Interscambio (SDI), operated by the Agenzia delle Entrate, is the central platform through which every invoice must pass before it reaches the recipient.

The system uses the FatturaPA XML format. Italy's clearance model means no invoice is legally valid until it has been accepted by SDI. This gives the Italian tax authority real-time visibility into all invoicing activity across the economy.

Italy's rollout began with B2G in March 2015. B2B and B2C followed in January 2019 for all VAT-registered businesses. Initially, flat-rate taxpayers (regime forfettario) were exempt, but this exemption was removed in January 2024. Italy now has one of the most mature and broadly applied e-invoicing systems in the world.

All VAT-registered businesses in Italy must issue electronic invoices through SDI for domestic B2B, B2G, and B2C transactions. 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. There are very few remaining exemptions.

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. All invoices processed by SDI are automatically available to the Agenzia delle Entrate for pre-filled VAT returns. Businesses can access their received invoices through the "Fatture e Corrispettivi" portal.

Italy applies penalties based on the VAT amount of the non-compliant invoice. Fines for failure to issue or non-compliant format range from 90% to 180% of the VAT amount. Late submissions attract a fixed penalty of EUR 2 per invoice, capped at EUR 400 per month. Invoices not submitted through SDI are considered not issued, which triggers additional penalties and loss of deduction rights.