e-Invoicing in Italy: Timeline, Guidelines, Process, and Steps for Implementation

Italy has been at the forefront of digitalising invoicing through a structured and centralised e-invoice system. Since 2019, e-invoicing has been compulsory for transactions in both the public and private sectors, including B2G and B2B transactions. The system is based on the FatturaPA format, which ensures compliance with EU standards, and all invoices must be transmitted through the government-run platform, Sistema di Interscambio (SDI). The Italian Ministry of Economy and Finances and Revenue Agency is responsible for managing and monitoring the system’s use across sectors.

By 2025, electronic invoicing has become the standard practice in Italy, with most transactions conducted digitally. Several technical channels are available for submitting invoices, and public authorities are required to receive and process them digitally. To help businesses meet the legal requirements and avoid issues with compliance, this guide outlines the key timeline, e-invoice guidelines, and the steps needed for the smooth e-invoicing implementation in Italy.

What is e-Invoicing in Italy?

In Italy, digital invoicing involves exchanging invoices through a structured system known as FatturaPA. It is a legal requirement for both public and private sector transactions. All e-invoices must be created in XML format and sent through the government’s Sistema di Interscambio (SDI) platform, which checks, validates, and forwards them to the recipient. This system ensures transparency, reduces tax evasion, and simplifies recordkeeping for businesses and authorities.

e-Invoice Implementation Timeline

The e-invoicing implementation in Italy follows a well-structured timeline, ensuring smooth adoption across various sectors.

e-Invoicing Process in Italy

All e-invoices in Italy are exchanged via the Sistema di Interscambio (SDI), the government’s central platform that validates and forwards e-invoices between senders and recipients.

1. Create the e-Invoice: Use the standard FatturaPA format (XML) for B2G, B2B, or B2C invoices.
2. Validate Invoice Details: Ensure mandatory fields are completed (e.g., VAT number, unique office code, taxable amount).
3. Choose Transmission Method: Submit the invoice to SDI using any of the platforms such as Certified Electronic Mail (CEM), Revenue Agency Web Portal, SDICoop (Web Service), or SDIFTP (File Transfer Protocol). 
4. Submit the Invoice to SDI: Send the invoice via the selected method. SDI performs formal checks only (not financial validation).
5. Receive Status Notification: SDI returns a delivery confirmation, rejection notice, or error message after validation.
6. Forwarding by SDI: Once validated, SDI routes the invoice to the buyer (public or private entity) using CEM, SDICoop (Reception), SDIFTP, or SPCoop (Reception). 
7. Invoice Receipt and Processing: Buyers receive and process the e-Invoice using their internal or outsourced accounting systems.
8. Digital Archiving: Recipients must store e-Invoices digitally for 10 years. SDI does not retain any invoices.

e-Invoicing Compliance Guidelines

To remain compliant with national regulations, Italian companies must follow specific e-invoicing rules.

• Format requirement: Businesses must use FatturaPA, the designated XML format (InvoicePA), for sending and receiving electronic invoices.
• Digital Signature: All e-invoices must be digitally signed using either CAdES-BES or XAdES-BES formats.
• CAdES-BES: This is the most frequently used electronic signature in Italy, which includes the signed content, identity of the signer, timestamp, and verification data.
• XAdES-BES: An XML-based advanced signature offering a higher level of integrity for e-invoice transactions.
• Signature Generation: The digital signature must be created using a secure signature generation device provided by a certified provider.
• Archiving: Businesses must retain e-invoices in a compliant digital format for 10 years, ensuring they remain secure, unaltered, and accessible.

Who Needs to Comply with e-Invoicing in Italy?

In Italy, all businesses that engage in B2B and B2C transactions, as well as public authorities and central administrations, must comply with Italy's e-invoicing requirements. This includes both government entities and private sector businesses, except medical professionals. 

Benefits of e-Invoicing in Italy

E-invoicing offers several practical advantages for businesses in Italy:

• Reduces the risk of human errors by automating the invoicing process
• Speeds up cash flow with faster payment processing
• Saves on costs related to paper, postage, and administrative work
• Enhances compliance with regulations and provides real-time tracking of invoices
• Supports sustainability by reducing paper usage
• Simplifies archiving with digital storage

e-Invoices Italy Penalty 

The Italian government enforces strict penalties for e-invoicing non-compliance. Here are the key penalties:

• Late submission of an electronic invoice to the SDI may result in fines from €250 to €2,000 per invoice.
• If an e-invoice is submitted late to the SDI, penalties can range from €250 to €2,000 per document. 
• Immediate invoices must be submitted within 12 days, while deferred invoices are due within 15 days after the relevant month ends.
• If the invoice is corrected and submitted within 15 days, the penalty is reduced by half.

How can ClearTax help a business with e-Invoicing in Italy?

ClearTax makes e-invoicing in Italy easier for businesses with a complete solution:

• Easy ERP & POS Integration: Automatically creates and sends invoices in the FatturaPA format, ensuring compliance with Italian e-invoicing standards.
• Instant Validation: Checks invoices for compliance with Italian VAT rules, ensuring accurate submissions.
• Secure Cloud Storage: Stores e-invoices for the required 10 years, making retrieval simple and safe.
• Compliance Alerts: Helps businesses meet deadlines and avoid errors, ensuring full compliance with Italy’s e-invoicing regulations.

Conclusion

Italy's e-invoicing system is essential for ensuring compliance with tax laws and making invoicing more efficient. Businesses must follow specific steps, from using the FatturaPA format to submitting invoices through the Sistema di Interscambio. Compliance is mandatory, and there are penalties for delays or errors. ClearTax can support businesses by simplifying the e-invoicing process through easy integration with ERP and POS systems, real-time validation of invoices, secure cloud storage for compliance, and monitoring to ensure deadlines are met, all while reducing the risk of penalties.