E-Invoicing in Italy: Complete Guide to FatturaPA and SDI
Italy has been mandatory for B2B e-invoicing since 2019 — the first EU country to do so. Here's exactly how the system works, what the SDI is, and what businesses need to do today.
E-Invoicing in Italy: Complete Guide to FatturaPA and SDI
Italy didn't wait for the EU to mandate e-invoicing. It went first, and it went all the way.
Since 1 January 2019, every VAT-registered business in Italy has been legally required to issue and receive invoices electronically through the SDI — the Sistema di Interscambio (Electronic Exchange System). Not recommended. Not phased. Mandatory for everyone.
If you're an Italian business, a foreign company trading with Italian partners, or an EU compliance professional trying to understand what Italy did that others are now copying — this guide covers it all.
The Short Version
- FatturaPA is the XML format. Every invoice must be in this format.
- SDI is the government hub that routes invoices between sender and recipient.
- You cannot send invoices directly. All invoices must go through SDI.
- Paper invoices are not valid for B2B transactions between Italian VAT payers.
- Storage must be electronic and certified for 10 years (conservazione sostitutiva).
What is the SDI?
The Sistema di Interscambio is the Italian tax authority's electronic routing and validation platform. Think of it as a postal hub that sits between every invoice sender and recipient in the country.
When you issue an invoice in Italy, this is what happens:
- Your software generates a FatturaPA XML file
- The file is transmitted to SDI (either directly or via a certified intermediary)
- SDI validates the XML structure and checks the recipient's tax code (VAT number or Codice Fiscale)
- SDI delivers the invoice to the recipient's receiving channel (SDI address, PEC, or web service)
- SDI sends back a receipt confirming delivery or a rejection notice
- The invoice is legally valid only from the moment SDI confirms delivery
This is fundamentally different from, say, Germany's approach where XRechnung invoices can be sent directly. In Italy, SDI is the mandatory intermediary — every single invoice, no exceptions.
FatturaPA: The Format
FatturaPA stands for Fattura della Pubblica Amministrazione — it was originally designed for B2G invoicing with government bodies, then extended to B2B and B2C.
It's an XML schema defined by the Agenzia delle Entrate. The current version is 1.3.2, released in 2020 to support new tax scenarios introduced post-pandemic.
Key fields that differ from other EU formats:
| Field | Italian Specificity |
|---|---|
| CodiceDestinatario | 7-character SDI routing code (like a postal code for your SDI inbox) |
| PECDestinatario | Certified email (PEC) as an alternative routing channel |
| CodiceFiscale | Italian tax code — mandatory for all parties |
| RegimeFiscale | Tax regime code — identifies forfettari, ordinario, agevolato, etc. |
| TipoDocumento | Document type: TD01 (standard invoice), TD04 (credit note), TD24 (deferred invoice), and more |
| Natura | VAT exemption code — required when VAT isn't charged |
The full schema is publicly available at www.fatturapa.gov.it. It's well-documented, and most Italian accounting software generates it automatically.
Who Is Obligated?
Mandatory since 2019-01-01:
- All businesses registered for VAT in Italy (partita IVA)
- All transactions: B2B, B2G, and B2C (for B2C, the consumer receives a courtesy copy)
- Domestic transactions only — cross-border invoicing follows different rules (see below)
Extended to forfettari:
Italy's regime forfettario (simplified flat-rate scheme for small sole traders) was originally exempt. The mandate was extended in stages:
- July 2022 — forfettari with annual revenue above €25,000
- January 2024 — all forfettari, regardless of income
If you're a freelancer under the flat-rate scheme (regime forfettario) in Italy, you have been required to issue FatturaPA since 2024 at the latest.
Still exempt:
- Cross-border transactions with non-Italian entities (handled separately via esterometro reporting, which was abolished and replaced with real-time SDI transmission)
- Invoices to private consumers resident outside Italy
- Some very specific micro-exemptions in healthcare and agriculture
Cross-Border Invoicing: The Esterometro Is Dead
Until 2022, Italian businesses used to file a quarterly report called the esterometro listing all cross-border transactions not going through SDI. That's gone.
Since 1 July 2022, cross-border invoices (both sent to foreign customers and received from foreign suppliers) must also be communicated via SDI, using specific document type codes:
- TD17 — Self-billing for services received from abroad
- TD18 — Self-billing for goods purchased intra-EU (triangle transactions)
- TD19 — Self-billing for goods purchased from non-EU suppliers with Italian VAT due
- TD28 — Invoices issued to foreign customers (customers outside Italy)
If you're a foreign company receiving invoices from Italian suppliers, your Italian partner will need to have your Codice Fiscale or VAT number correctly configured in the SDI address book.
How to Receive Invoices in Italy
Every business must have at least one way for SDI to deliver invoices to them. The options:
1. CodiceDestinatario (SDI Code)
A 7-character alphanumeric code assigned by your e-invoicing intermediary. This is the preferred method — reliable, fast, and keeps invoices in your system automatically.
2. PEC (Posta Elettronica Certificata)
Italy's certified email system. You can register a PEC address with Agenzia delle Entrate as your receiving channel. It works, but it's less automated than using a CodiceDestinatario.
3. Agenzia delle Entrate Web Portal
If you don't have either of the above, invoices pile up in your taxpayer area on the Agenzia delle Entrate's website. You have to check and download them manually. Not ideal for any business processing more than a handful of invoices per month.
The practical advice: Get a proper e-invoicing intermediary and a CodiceDestinatario. It costs a few euros per month and saves significant manual work.
Legal Storage: Conservazione Sostitutiva
Italian law requires that FatturaPA invoices be stored electronically for 10 years in a certified format called conservazione sostitutiva (substitute preservation). This is different from simply keeping files on your computer.
Conservazione sostitutiva must:
- Be performed by an accredited Responsabile della Conservazione (storage manager)
- Generate a preservation index file signed with a qualified electronic signature
- Ensure authenticity, integrity, and readability for the full 10-year period
Most e-invoicing platforms (Aruba, TeamSystem, Fattura24) include this as part of their service. If yours doesn't, you need to add it — using a conservazione provider that is listed on the AgID (Agenzia per l'Italia Digitale) register.
Printing your FatturaPA invoices as PDFs and filing them in a folder does not constitute valid conservazione sostitutiva.
Penalties for Non-Compliance
The Italian tax authority takes e-invoicing compliance seriously. Penalties for non-compliant invoicing:
| Violation | Fine |
|---|---|
| Issuing a paper invoice instead of FatturaPA | 90%–180% of the VAT amount shown on the invoice |
| Missing or delayed SDI transmission | Same as above — from 90% of VAT |
| Late or missing conservazione sostitutiva | Administrative fine, case-by-case |
| Fraudulent alteration of FatturaPA data | Criminal penalties possible |
The SDI system also creates a full audit trail visible to Agenzia delle Entrate. There is very little room to claim "I didn't know" — the system records everything.
How to Get Compliant: 5 Steps
Step 1: Register a CodiceDestinatario or PEC with Agenzia delle Entrate
Log in to your area on ivaservizi.agenziaentrate.gov.it and register your SDI receiving channel. You only need to do this once.
Step 2: Choose Your E-Invoicing Software
You need software that can generate valid FatturaPA XML, transmit it to SDI, track the delivery status, and handle the responses. See our Italy software comparison for a breakdown of the main options.
Step 3: Configure Your Tax Data Correctly
Make sure your software has your partita IVA, codice fiscale, fiscal regime code, and the correct CodiceDestinatario for your customers. Errors here cause SDI to reject invoices.
Step 4: Set Up Conservazione Sostitutiva
Most reputable e-invoicing providers include conservazione in their service. Confirm this before signing up — otherwise you're compliant at transmission but non-compliant at storage.
Step 5: Test with a Real Invoice
Before going live, send a test invoice to your own SDI address and verify the delivery receipt. Some providers have sandbox environments; use them.
Common Questions
Q: I'm a foreign company selling services to an Italian business. Do I need to use SDI? A: No — foreign businesses are not required to use SDI. Your Italian customer will self-bill using TD17 via SDI. However, if you're VAT-registered in Italy (not just your home country), you are subject to the Italian e-invoicing requirements.
Q: Can I still send PDF invoices alongside FatturaPA? A: You can send a PDF as a courtesy copy for readability, but it has no legal value. The FatturaPA file transmitted via SDI is the only legally valid invoice.
Q: What if SDI rejects my invoice? A: You have 5 days to correct the error and resubmit. After that, you need to issue a credit note for the original and send a new corrected invoice.
Q: Is SDI the same as Peppol? A: No, they're separate networks. SDI is Italy's domestic system. Peppol operates internationally. Italy is a member of the Peppol network and Italian businesses can use Peppol for cross-border transactions, but domestic B2B invoices must go through SDI specifically.
Last updated: April 2026. Sources: Agenzia delle Entrate, fatturapa.gov.it, Legislative Decree 127/2015.