PEPPOL IN EUROPE
E-Invoicing in Italy
B2G e-invoicing is mandatory in Italy for all central administrations under the European Directive 2014/55/EU. They have been introduced gradually since 2014 when the obligation to use electronic documents rested solely with ministries, tax offices, and national security agencies. A year later, in 2015, all public entities in the country were obliged to do so. Italy is also the first EU country to mandate national B2B and B2C e-invoicing. The obligation entered into force on January 1, 2019.
Since January 1, 2024, even micro-enterprises with annual revenues or fees up to EUR 25,000 have been required to issue and settle e-invoices.
Italy uses the clearance model system for e-invoices. In the CTC model, companies issue structured invoices in the Tax Authority’s XML Schema format, called FatturaPA. In B2G transactions, companies are required to submit a qualified electronic signature. All electronic invoices in Italy must be sent to Sistema di Interscambio (SDI). SDI is a nationwide internet hub that provides a portal for sending and receiving e-invoices.
Since June 1, 2022, all cross-border invoices (export, import, intra-community, etc.) have to be sent to SDI on a transactional basis. Because all foreign transactions (including intra-community ones) are reported in SDI, report Esterometro is withdrawn. Invoices not submitted through the SDI system attract penalties of between 90% and 180% of the VAT due. Penalties for the non-declaration of invoices in the ‘cross-border communication’ will be EUR 2 per invoice up to a ceiling of EUR 400 per month.
The European Union Council has granted Italy an extension for its mandatory electronic invoicing system until December 31, 2027. This derogation remains in effect unless a new EU-wide electronic invoicing system is implemented under Article 113 of the Treaty on the Functioning of the European Union.
On June 4, 2025, the Council of Ministers approved a legislative decree that modifies tax compliance requirements. This decree includes a permanent ban on electronic invoicing through the SDI for healthcare services provided to individuals, in order to protect the confidentiality of healthcare data in B2C relations.
