Italy e-invoicing: Guide for UK Business

Planning to do business in Italy? If you’re a UK company selling to or working with Italian clients, you’re going to need to know about e-invoicing. It’s mandatory for B2B transactions in Italy, so it’s essential to get to grips with it.

In this guide, we’ll run through everything you need to know about Italy e-invoicing requirements. This includes what the invoicing system is in Italy and how it works, plus the answers to some commonly asked questions about it.

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Italy e-invoicing - An overview

Electronic invoicing (e-invoicing) is the exchange of a digital invoice document between supplier and purchaser. In this system, everything is done through automatic and electronic processing, in contrast to paper-based invoicing.

In Italy, e-invoicing is mandatory for B2B transactions between private businesses.¹ This means it may apply to you if your company is trading with an Italian business.

The legislation was introduced by the Italian tax authorities in 2014, initially only for sales to government bodies. The requirement was extended to other businesses and transactions as of 2018.¹

All e-invoices must be submitted to the Sistema di Interscambio (SdI) digital platform, so that taxable transactions can be verified by the Italian tax authorities in real time.¹

There are penalties for non-compliance with the new system, so businesses could have to pay anywhere between 90% and 180% of the VAT due.¹

What is SdI Italy e-invoicing?

If a business is required to submit electronic invoices, they must issue them through the Sistema di Interscambio (SdI) e-invoicing platform. Invoices must be submitted in XML format, and can contain a digital signature for extra authenticity. The SdI system then approves the invoice and submits it to the customer.²

To use the system, it’s necessary to be registered with the FatturaPA web interface. You can do this if you have an Italian branch of your company (an employee there can register on behalf of the company) or you can use an access point provider to submit invoices through the system.²

UK companies e-invoicing Italy

The e-invoicing system in Italy primarily applies to VAT-registered businesses which are based in the country and trade with each other. So if your company has a branch or subsidiary in Italy, you’ll need to comply.

However, it could also affect UK-based businesses who sell goods and services to Italy.

New rules came into force in July 2022 making it mandatory for international companies to comply with e-invoicing rules if they carry out cross-border transactions with an Italian-registered company.²

This means that if you want to trade with your Italian clients, you’ll need to get to grips with the SdI system. You’ll also need to submit invoices in the FatturaPA (XML) format.

Italy e-invoicing requirements

Here’s a quick checklist of key requirements relating to Italy’s e-invoicing system:

• You must register with the FatturaPA web interface, or use an access point provider of Enterprise Resource Planning (ERP) software
• Invoices must be submitted to the SdI system, not sent directly to the client
• Invoices must be in XML format
• Digital signatures can be in either of these two formats: CAdES-BES (CMS Advanced Electronic Signatures) and XAdES-BES (XML Advanced Electronic Signatures)²

You can find full details of what else is required on the Fattura PA website.

e-invoicing Italy - FAQs

Still have questions about Italy e-invoicing rules and requirements? Take a look below.

Is electronic invoice mandatory?

Electronic invoicing for businesses became mandatory in Italy in 2019. The rules were expanded to include international companies trading with Italian-registered businesses in 2022.

Country-specific rules like this were prompted by the European Union (EU) introducing its own legislation in 2014 - called ‘Directive 2014/55/EU on electronic invoicing in public procurement’.³

What is the format of e-invoicing in Italy?

All electronic invoices in Italy must be submitted in the appropriate XML format, as specified by the FatturaPA requirements. A digital signature should also be provided to guarantee the authenticity of origin.⁴

What is the EU e-invoicing mandate?

The ‘Directive 2014/55/EU on electronic invoicing in public procurement’ was introduced by the EU in 2014. It required all public sector bodies within member states of the EU to accept e-invoices. It also stipulated that e-invoices should comply with certain standards, including the use of electronic signatures.³

What is the difference between an e-invoice and a normal invoice?

An e-invoice is a digital version of an invoice document, which is submitted and processed electronically. A standard invoice is usually in paper form, and requires manual processing and filing.

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After reading this guide, you should have a better idea of what to expect when invoicing a client in Italy from the UK.

We’ve looked at the rules and requirements for e-invoicing in Italy, including what you need to do as an international business trading with an Italian business.

The difficult part will be to get registered and learn how to use the SdI system. But after that, you may find e-invoicing to be simpler, faster and more efficient than traditional invoicing methods.

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Sources used for this article:

1. Avalara - Italy Sistema di Interscambio (SdI) real-time e-invoices
2. Storecove - E-Invoicing Requirements in Italy (Easy Checklist)
3. European Commission - European legislation on eInvoicing
4. FatturaPA - What FatturaPA is

Sources checked on 29-04-2024.