Compare · Peppol vs SDI (FatturaPA)
Peppol vs Italy’s SDI: Federated Network vs Centralized System
Italy’s Sistema di Interscambio (SDI) is a centralized government hub that processes every domestic e-invoice. Peppol is a federated network where certified Access Points route invoices directly between businesses. They represent fundamentally different approaches to e-invoicing infrastructure — and for businesses trading with Italy, understanding both is essential.
TL;DR
- Use Peppol if: For cross-border EU e-invoicing, Belgian B2B, German B2B, and any multi-country invoicing. Peppol is the pan-European standard.
- Use SDI (FatturaPA) if: For all domestic Italian B2B and B2G invoicing. SDI is mandatory — every invoice to or from an Italian business must pass through it.
- Use both if: When invoicing Italian businesses from other EU countries. The invoice may travel via Peppol cross-border but must interface with SDI for Italian delivery.
| Feature | Peppol | SDI (FatturaPA) |
|---|---|---|
| Architecture | Federated — many Access Points, no central hub | Centralized — all invoices pass through one government hub |
| Scope | 39+ countries | Italy only |
| Invoice format | Peppol BIS 3.0 (UBL 2.1) | FatturaPA 1.2 (Italy-specific XML) |
| Standard base | EN 16931 + Peppol CIUS | Italian-specific schema (not directly EN 16931) |
| Transport | AS4 between Access Points | HTTPS upload to SDI or PEC (certified email) |
| Government visibility | No — invoices travel point-to-point | Yes — tax authority sees every invoice in real time |
| Validation | Sender-side + receiver-side validation | SDI validates centrally before delivery |
| Delivery confirmation | Access Point receipts (MLR) | SDI issues acceptance/rejection notifications |
| Tax reporting | Separate from invoicing | Integrated — SDI data feeds directly to tax authority |
| Cross-border | Native — designed for multi-country | Limited — domestic focus, Peppol growing for cross-border |
Peppol is a federated network where certified Access Points route invoices between businesses without a central hub. Each Access Point is independently certified and handles its own message routing, validation, and delivery. No single entity sees all invoices — the network is decentralized by design.
Peppol uses the BIS Billing 3.0 format (UBL 2.1 based, EN 16931 compliant) and the AS4 transport protocol. It operates in 39+ countries with 300,000+ registered participants.
Italy’s Sistema di Interscambio (SDI) is a centralized clearinghouse operated by the Agenzia delle Entrate (Italian Revenue Agency). Every e-invoice between Italian businesses must pass through SDI. The system validates the invoice, delivers it to the recipient, and simultaneously feeds the data to tax authorities for real-time VAT reporting.
SDI uses the FatturaPA 1.2 format — an Italy-specific XML schema that predates EN 16931. Invoices are submitted via HTTPS or PEC (Italy’s certified email system). SDI has been mandatory for all Italian B2B since January 2019, making Italy one of the earliest and most complete e-invoicing mandates in the EU.
Centralized vs. federated
Format differences
Tax integration
Peppol
- Cross-border EU invoicing to or from Italy
- Multi-country B2B where Italy is one of several markets
- Belgian, German, Dutch, or other EU domestic invoicing
- When you want a single network integration for multiple countries
SDI (FatturaPA)
- All domestic Italian B2B invoicing (mandatory)
- All Italian B2G invoicing (mandatory since 2014)
- When an Italian buyer requires FatturaPA format
- When you need integrated Italian tax compliance
For cross-border invoicing involving Italy, you may need both systems. An invoice from a Belgian company to an Italian buyer might originate on Peppol but needs to reach SDI for Italian delivery. Access Points and intermediaries handle this bridge — converting between Peppol BIS and FatturaPA formats and routing between the two networks. Italy is actively expanding Peppol support for cross-border use alongside SDI for domestic transactions.
Check Peppol BIS, EN 16931, and country-specific rules in one pass.
Checking is free. The first verified download every 30 days is free. After that €1.90 per invoice, or €9 a month for all of them.
Frequently Asked Questions
- Is SDI mandatory for all Italian businesses?
- Yes. Since January 2019, all B2B invoices between Italian VAT-registered businesses must pass through SDI. B2G invoicing via SDI has been mandatory since 2014. There are very limited exemptions (some micro-businesses in specific regimes).
- Can I send a Peppol invoice to an Italian business?
- Not directly to SDI — SDI requires FatturaPA format. However, Access Points and intermediaries can bridge the two systems: accepting a Peppol BIS invoice, converting it to FatturaPA, and submitting it to SDI on your behalf.
- Is Italy moving to Peppol?
- Italy is expanding Peppol adoption for cross-border invoicing while keeping SDI for domestic transactions. The EU’s ViDA directive may eventually push toward greater Peppol integration, but SDI remains the domestic standard for the foreseeable future.
- What format does SDI use?
- FatturaPA version 1.2 — an Italy-specific XML format maintained by the Agenzia delle Entrate. It predates EN 16931 and has its own structure, field names, and validation rules that differ significantly from UBL-based formats.
- How does ViDA affect Peppol vs SDI?
- The EU’s VAT in the Digital Age (ViDA) directive promotes cross-border e-invoicing standardization. It may create requirements for interoperability between national systems (like SDI) and pan-European networks (like Peppol). The full impact depends on final implementation timelines.