Italy

Implementation of mandatory e-invoicing in Italy

• Since 2019, all B2B and B2C transactions must be e-invoiced through the Sistema di Interscambio (SDI), a government-run clearance platform. Paper invoices are not allowed for most cases.
• In 2022, the scope expanded to include cross-border transactions, small businesses, and VAT-exempt professionals (e.g. doctors, lawyers).

Who needs e-invoices in Italy?

• 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

Key Features of Italy’s e-invoicing system

• 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

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

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

• 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.