How does e-invoicing work in Italy?

Italy was the first EU country to mandate B2B e-invoicing, effective January 2019 for all businesses (with a July 2022 extension to micro-enterprises). All invoices must be submitted through the SDI (Sistema di Interscambio) platform operated by Agenzia delle Entrate. Italy uses FatturaPA as its national e-invoice format, which is NOT EN 16931-compliant — it predates the EU standard. Italy processes over 2 billion e-invoices annually, making it the largest e-invoicing market in Europe.

What e-invoice format does Italy require?

Italy requires FatturaPA (Fatturazione Elettronica verso la Pubblica Amministrazione), a proprietary XML format maintained by Agenzia delle Entrate. Unlike other EU countries that use EN 16931-based formats (UBL, CII), Italy's FatturaPA follows its own schema. All invoices must be digitally signed and submitted through the SDI platform. Invoice Navigator validates and converts between FatturaPA and EN 16931 formats for cross-border interoperability.

Countries · IT

E-invoicing in Italy

B2B mandatoryPeppol connectedUpdated January 2026Verified 17 August 2026 · automated check

1 source

Official sources we check for Italy.

Agenzia delle Entrate - Fatturazione Elettronica

Italy was the first EU country to mandate B2B e-invoicing nationwide, requiring all domestic transactions to go through the Sistema di Interscambio (SDI) since January 2019. Every invoice — B2B, B2C, and B2G — must be submitted in FatturaPA XML format through the SDI platform operated by the Agenzia delle Entrate (Italian Revenue Agency).

The mandate covers all VAT-registered entities in Italy with no revenue threshold — every business must send and receive through SDI. Cross-border transactions must also be reported electronically. Italy's early adoption has been credited with recovering over €2 billion in previously lost VAT revenue, and the model is widely referenced by other EU countries designing their own mandates.

FatturaPA uses a proprietary XML schema distinct from UBL and CII, though it maps to the EN 16931 semantic model. Validation runs through SDI's own checks plus the Agenzia delle Entrate's business rules. Invoice Navigator validates FatturaPA invoices against the full SDI ruleset and provides EN 16931 cross-mapping, helping businesses that operate across multiple EU countries maintain a single compliance pipeline.

Non-compliance results in invoice rejection by SDI, penalties from the Agenzia delle Entrate, and potential loss of VAT deduction rights. Late or missing electronic submissions can trigger fines of 90-180% of the VAT amount.

TL;DR

Italy mandates FatturaPA e-invoicing for all B2B, B2C, and B2G transactions via the SDI platform since January 2019 — the first EU-wide B2B mandate.

Mandate status

Phase	Status	Scope
B2G	Live (Jun 2014)	All public administration suppliers
B2B	Live (Jan 2019)	All domestic transactions
B2C	Live (Jan 2019)	All domestic transactions
Flat-rate taxpayers	Live (Jul 2022)	Extended to forfettari regime

Technical specifications

Validation engineSDI (Sistema di Interscambio)

Required CIUSFatturaPA 1.2.2

Government portalFatture e Corrispettivi

Routing identifierCodice Destinatario (7-char) or PEC address

PeppolYes — Peppol used for cross-border, SDI for domestic

Accepted formatsfatturapa

Rules checked98 FatturaPA 1.2.2 (SDI v1.9.1 effective May 15, 2026) rules

Common rejections

Code	Rejection	Guide
PEPPOL-SDI-01	Peppol to SDI conversion error	Fix guide
SDI-00200	Duplicate invoice number	Fix guide
IT-R-003	Natura code required for zero VAT	Fix guide
SDI-00311	Ritenuta d'acconto calculation error	Fix guide
IT-02	Italian invoices should include SDI recipient code	Fix guide

All Italy error codes

Implementation notes

Italy's SDI clearance model is the reference implementation for EU CTC systems, but it has integration patterns that differ from post-audit models.

SDI delivery lifecycle. Your system sends FatturaPA XML to SDI, which validates format and tax ID consistency, then delivers to the recipient via their Codice Destinatario or PEC address. SDI returns delivery notifications (ricevuta di consegna) or rejection notifications (notifica di scarto) — your pipeline must handle both async states. Invoices must be transmitted within 12 days of the transaction date.

FatturaPA format specifics. FatturaPA is not EN 16931 — it predates the European standard and has its own schema. CIG (Codice Identificativo Gara) and CUP codes are mandatory for B2G routing. Digital signature (XAdES or CAdES) is required on every invoice. The most common rejection: invalid Codice Fiscale or Partita IVA on either party.

Cross-border and Esterometro. Cross-border transactions must be reported via the Esterometro system (now integrated into SDI as TD17-TD19 document types). If your pipeline handles both domestic and cross-border Italian invoices, you need separate document type logic. Peppol is used for inbound cross-border, but domestic must always go through SDI.

Multi-entity considerations. Large groups often use a single Codice Destinatario for all entities. SDI supports this but your routing logic must map the Codice to the correct legal entity. The Cassetto Fiscale (tax drawer) stores all invoices — recipients have 15 days to accept or reject.

SDI v1.9.1 takes effect May 15, 2026. Three breaking changes for ERP vendors: new error code 00327 (rejects invoices where a VAT Group / Gruppo IVA tax code is incorrectly indicated — IdFiscaleIVA must carry the group's Partita IVA, not the individual entity's), expanded WS/SFTP recipient code cap (100 → 300 per accreditation, opt-in via re-accreditation), and a new ESENZSPORT Natura code for the sports-worker tax-exempt regime (≤€15K/yr). See [/blog/italy-sdi-v1-9-1-error-00327-may-2026](/blog/italy-sdi-v1-9-1-error-00327-may-2026) for the full integration breakdown.

Recent updates

2026-08-17

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