Italy

Provinces

General

Provinces

General

About

General

About

General

Italy’s e-invoicing system is driven by the government’s efforts to combat VAT fraud and streamline business processes. Implemented through the Sistema di Interscambio (SDI) platform, ensuring compliance and efficient communication.

Implementation Timeline

Date	Requirement	Details
January, 2019	Mandatory for Domestic Transactions	All B2B and B2C transactions involving VAT-registered businesses in Italy are required to issue e-invoices via the SDI platform
July 1, 2020 January 1, 2021	Extension to Cross-Border Transactions	Businesses are required to report cross-border invoices to the Agenzia delle Entrate using the Esterometro format if not processed through the SDI
July 1, 2022	MicroBusinesses Included	Businesses with revenue below €65,000 are required to adopt e-invoicing
January, 2024	Full Adoption of E-Invoicing	Mandatory for all taxpayers, including cross-border transactions processed exclusively through the SDI platform

Who Needs E-Invoices?

Large Enterprises: Complying since 2019 for all domestic transactions.
Small and Medium Enterprises (SMEs): Required to issue e-invoices through the SDI platform.
Micro-Businesses: Included since 2022 for issuing all invoices electronically.
Non-Resident Businesses: Must comply for transactions with Italian VAT-registered entities and report others through Esterometro (until 2024).

E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	VAT compliance, regulated by SDI	Billing and payments, customer-focused
Format	Via SDI with compliance checks	Not validated
Usage	Digitally stored for 10+ years	Optional

Key Features

Submission Platform: All invoices must be submitted via the SDI for validation.
Compliance Checks: SDI validates invoice format, VAT details, and compliance requirements.
Archiving: Digital storage for 10 years is mandatory.

E-Invoicing Dataset

Buyer/Seller IDs: VAT identification numbers.
Invoice Details: Number, date, and payment terms.
Goods and Services: Descriptions, quantities, and pricing.
Taxes: VAT rates and amounts.
Transaction Info: Total payable amount and payment method.

E-Invoicing Across Transaction Types

B2B Transactions:

Mandatory via SDI to ensure compliance and accurate tax reporting.
Facilitates faster payments and reduces errors.

B2C Transactions.

Mandatory for VAT-registered businesses, providing simplified digital invoices or receipts.

B2G Transactions

Required for all transactions with government entities to ensure transparency in public procurement.

Penalties for Non-Compliance

Finess: Up to 100% of the VAT amount, with a minimum of €500 per invoice.
Operational Delays: Rejected invoices can disrupt payments and operations.
Legal Risks: Potential audits and investigations due to noncompliance.

April 15, 2025 8