Country Guide

How to invoice in Italy

Italy was the first EU country to mandate e-invoicing for all B2B and B2C transactions. Every invoice must pass through the SDI (Sistema di Interscambio). This guide covers everything you need to invoice correctly in Italy.

Why Italian invoicing rules matter

Italy has one of the most regulated invoicing systems in Europe. Since January 2019, all invoices between Italian businesses (and since 2024, also for flat-rate taxpayers) must be transmitted electronically through the SDI. Paper invoices are only valid for a handful of exceptions. The Agenzia delle Entrate (Revenue Agency) uses SDI data for real-time tax compliance monitoring, which means errors get flagged fast. If you sell to Italian businesses or consumers, understanding the FatturaPA format and IVA rules is not optional. It is a prerequisite for getting paid.

Key tax and invoicing facts

IVA rates
Standard rate is 22%. The 10% rate covers tourism, certain food products, and energy. The 5% rate applies to specific health and social services. The 4% super-reduced rate covers essential food items, newspapers, and medical devices.
Tax identification
Italian businesses have two identifiers: the Partita IVA (11-digit VAT number) and the Codice Fiscale (alphanumeric tax code for individuals, numeric for companies). Both are required on invoices. For EU cross-border sales, the Partita IVA with IT prefix serves as the EU VAT ID.
SDI mandatory e-invoicing
Since 2019, all B2B and B2C invoices must be transmitted through the SDI in FatturaPA XML format. The SDI validates, routes, and stores every invoice. Invoices not sent through SDI are considered non-existent for tax purposes. This applies to all taxpayers since 2024.
Immediate invoices vs. deferred
Italy distinguishes between fattura immediata (issued within 12 days of the transaction) and fattura differita (issued by the 15th of the following month for multiple deliveries). The type must be indicated in the FatturaPA document type code.
Common payment methods
Bank transfer (bonifico bancario) is standard for B2B. Ri.Ba. (Ricevuta Bancaria) is a widely used collection instrument. SEPA direct debit is growing for recurring payments. Consumer payments lean toward cards, Satispay, and cash (though cash is limited to 5,000 EUR per transaction).
Currency
Euro (EUR). Domestic invoices must be in EUR. Invoices in foreign currencies are allowed for cross-border transactions, but IVA amounts must be converted to EUR using the exchange rate on the transaction date.

Required invoice fields in Italy

  • Full name/company name and address of the supplier
  • Full name/company name and address of the customer
  • Supplier's Partita IVA (VAT number)
  • Supplier's Codice Fiscale (tax code)
  • Customer's Partita IVA or Codice Fiscale
  • Customer's SDI code (Codice Destinatario) or certified email (PEC)
  • A unique, sequential invoice number (reset annually or continuous)
  • Invoice issue date
  • Date of supply or service completion (if different from issue date)
  • Detailed description of goods or services
  • Quantity and unit price (net) per line item
  • Applicable IVA rate per line item (22%, 10%, 5%, or 4%)
  • Net amount, IVA amount, and gross total
  • Any applicable IVA exemption code (Natura codes N1-N7)
  • Payment terms, method, and bank details (IBAN)
  • Bollo virtuale (2 EUR digital stamp) if the invoice is IVA-exempt and exceeds 77.47 EUR

Questions

Do I need to use SDI for all invoices in Italy?

Yes. Since January 2024, all Italian taxpayers, including flat-rate (forfettario) regime businesses, must issue invoices through the SDI. The only exceptions are invoices to certain international organizations and to non-resident individuals with no Italian tax ID. Cross-border invoices to non-Italian recipients must still be reported through SDI via the esterometro integration.

What is the FatturaPA format?

FatturaPA is the mandatory XML format for Italian electronic invoices. It has a defined schema maintained by the Agenzia delle Entrate. The format includes all invoice data, supplier/customer details, line items, tax codes, and payment information. Invoices must be digitally signed (XAdES or CAdES) before submission to SDI.

What is the Codice Destinatario?

The Codice Destinatario is a 7-character alphanumeric code that identifies the recipient's SDI channel. Businesses register their preferred SDI channel (their own or a service provider's) to receive e-invoices. If the code is unknown, you can use '0000000' and the invoice will be available in the recipient's tax drawer (cassetto fiscale).

How does the regime forfettario work?

The flat-rate regime (regime forfettario) is available to individuals and sole proprietors with annual revenue up to 85,000 EUR. You pay a 15% flat substitute tax (5% for the first 5 years of new businesses) instead of regular IVA and IRPEF. Since 2024, forfettario taxpayers must also use SDI e-invoicing.

How long must I keep invoices in Italy?

10 years for civil law purposes and until the tax assessment period expires (typically 5 years, extended to 7 in cases of non-filing). Since all SDI invoices are stored by the Agenzia delle Entrate for 15 years, many businesses rely on this as their digital archive. However, maintaining your own copies is strongly recommended.

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