Invoice Requirements in Italy: Legal Rules for 2026

TL;DR: Italy mandates electronic invoicing (Fattura Elettronica) through the SDI system in XML format for most B2B and B2C domestic transactions. Invoices must include Partita IVA, Codice Fiscale, and IVA at 22%, 10%, 5%, or 4% -- retain SDI XML and delivery receipts for at least ten years.

Italy is distinctive because B2B and most B2C domestic flows typically require electronic invoicing through the Sistema di Interscambio (SDI) in XML formats—not optional PDFs for many traders. IVA treatment, split payment in public-sector-like cases, and withholding (ritenuta) lines make Italian invoices dense compared with simpler VAT regimes. This overview targets 2026 practice for mainstream resident suppliers; it is not legal advice. Validate intra-EU, export, agricultural, and special sectors with your commercialista. Public administration (PA) customers often require CIG/CUP and split payment mechanics that consumer templates omit—map procurement data before you automate sends.

Required fields

Electronic invoices carry structured fields including supplier and customer identifiers (including Codice Fiscale / Partita IVA as applicable), document type, number and date, payment terms, line descriptions, taxable amounts, IVA rates (for example 22%, 10%, 5%, 4%, or Natura codes for exempt lines), withholdings where due, and totals. Cross-references to orders, contracts, or CIG/CUP may be required for public administration customers. Credit notes use defined document types and must chain to the original fattura.

Tax rules (VAT/GST/sales tax rates)

The ordinary IVA rate is 22%. Reduced rates apply to enumerated categories; zero-rated exports and qualifying intra-EU supplies depend on evidence and VIES-consistent VAT IDs. Exempt supplies use Natura codes rather than headline rates. Reverse charge and split payment scenarios must be declared consistently in XML and VAT ledgers.

Language requirements

Italian is the operational norm—SDI XML descriptions are typically Italian, and tax codes assume Italian semantics. English summaries may appear for foreign parents but should not contradict coded tax lines.

Digital invoicing rules

Certified invoicing software or service providers submit FatturaPA / FPR XML to SDI, which returns delivery outcomes you should archive. PDF copies are secondary to XML for legal evidence in many audits. Retention expectations are long—treat SDI metadata as part of your record bundle. Certified software updates can change XML schemas—schedule regression tests whenever your provider ships mandatory upgrades. Archive SDI receipt ACKs beside customer PDFs so disputes about delivery timestamps close quickly.

Invoice numbering rules

Italian invoices must carry a unique sequential number (numero progressivo) that identifies the document within the calendar year or another chosen period. You may use multiple numbering series with prefixes (such as FE/2026/0001 for electronic invoices, NC/2026/0001 for credit notes), but each series must be internally sequential. The SDI validates the document type (TipoDocumento) and number fields -- while it does not enforce sequential numbering itself, the Agenzia delle Entrate expects unbroken sequences during audits. Credit notes (note di credito) use document type TD04 and should reference the original invoice. At the start of a new year, you may restart numbering (common practice) or continue from the prior year. Voided invoice numbers should be recorded with an explanation. For public administration (PA) invoices, the CIG (Codice Identificativo di Gara) and CUP (Codice Unico di Progetto) must be included in structured XML fields in addition to the invoice number.

Common exemptions and special cases

The regime forfettario (flat-rate regime) is available to individuals and sole proprietors with revenue up to EUR 85,000 per year. Participants do not charge IVA on their invoices and must include the statement "Operazione effettuata ai sensi dell'articolo 1, commi da 54 a 89, della Legge n. 190/2014" (or updated references). They are still required to issue e-invoices through SDI. Reverse charge (inversione contabile) applies to many cross-border B2B transactions and specific domestic sectors including construction subcontracting, cleaning services, and energy trading -- the invoice must cite the relevant article and not show IVA. Split payment (scissione dei pagamenti) requires certain public-sector and public-utility buyers to pay the IVA portion directly to the treasury rather than to the supplier -- your invoice must flag this mechanism in the XML. Intra-Community supplies are non-taxable under article 41 of DL 331/1993 with valid VIES-verified VAT IDs. Small-value invoices do not have a simplified threshold as generous as some EU peers -- Italy generally requires full e-invoice content through SDI regardless of amount. The Natura codes (N1 through N7) classify non-standard IVA treatments in the XML and must match the legal basis for exemption, non-taxability, or reverse charge.

Record retention requirements

Italian law requires retention of invoices and accounting records for ten years from the date of the last entry, in line with article 2220 of the Codice Civile. For tax purposes, records must be retained until the statute of limitations for the relevant tax year expires (generally five years from the filing date, extended to seven years in cases of non-filing). The SDI XML is the legal document -- PDF renditions are supplementary. The Agenzia delle Entrate offers a free conservation service through the Fatture e Corrispettivi portal, which provides legally compliant archiving of e-invoices for ten years. Alternatively, you may use a certified digital preservation service (conservazione sostitutiva) that meets the requirements of the Codice dell'Amministrazione Digitale (CAD). SDI delivery receipts (ricevute di consegna) should be archived alongside the invoice XML as evidence that the document was successfully transmitted and accepted by the recipient's SDI channel. Paper invoices (rare now for domestic B2B) must be stored with the same retention periods.

E-invoicing status

Italy has been a European pioneer in mandatory e-invoicing. Since 1 January 2019, all domestic B2B and B2C invoices must be transmitted through the Sistema di Interscambio (SDI) in FatturaPA/FPR XML format. As of 1 January 2024, the e-invoicing mandate was extended to all taxpayers, including those in the flat-rate regime who were previously exempt. The SDI acts as a clearance hub: invoices are submitted to SDI, which validates the XML, routes it to the recipient (via PEC, SDI channel code, or the Agenzia portal), and returns delivery receipts. The system supports document types for invoices, credit notes, self-invoices, advance payments, and more. For cross-border transactions, the esterometro reporting requirement was replaced by mandatory SDI transmission of self-invoices (autofatture, document types TD17-TD19) for purchases from foreign suppliers. Italy's e-invoicing infrastructure is considered one of the most mature in the world and has served as a model for other EU countries designing their own mandates. Businesses must use certified software or a certified intermediary to submit XML to SDI.

Penalties

Agenzia delle Entrate may levy sanctions for late or invalid e-invoices, mismatched VAT, and incorrect XML. For failure to issue an e-invoice or issuing one outside SDI when the mandate applies, the penalty is 90% to 180% of the IVA related to the transaction (with a minimum of EUR 500 per invoice). For late issuance, penalties are reduced if the invoice is transmitted within the subsequent settlement period. Registration irregularities (errors in IVA ledgers) carry penalties of EUR 1,000 to EUR 8,000 per quarter. Incorrect IVA on invoices triggers penalties of 90% to 180% of the difference between the correct and declared tax. For the buyer, failure to regularize a missing or irregular invoice (by issuing a self-invoice and paying the IVA) within four months triggers a penalty of 100% of the undeducted IVA. Voluntary regularization (ravvedimento operoso) allows significant penalty reductions -- for example, correcting within 90 days can reduce penalties to one-ninth of the minimum. Customers may reject payments when SDI status is not accepted, creating cash-flow risk beyond pure tax fines. Ritenuta lines that drift from contract withholding percentages trigger double corrections -- sync legal and finance before month-end closes.

Finance and IT should co-own the SDI integration runbook: who monitors schema upgrades, who tests credit notes, and who archives delivery acknowledgements. Maintain a living data dictionary that maps each product SKU to SDI tax codes and Natura values so new catalogue launches do not require emergency fixes.

FAQ

Do I need to use SDI for invoices to foreign customers? For invoices to non-Italian customers, you are not required to transmit the sales invoice through SDI (though you may do so with recipient code XXXXXXX). However, since the elimination of the esterometro, you must transmit self-invoices (autofatture) through SDI for purchases from foreign suppliers using document types TD17, TD18, or TD19. Many businesses choose to transmit all invoices through SDI for consistency.

What is the difference between FatturaPA and FPR format? FatturaPA is the XML format required for invoices to public administration (PA) entities. FPR12 (Fattura Privati) is the format for B2B and B2C invoices. Both use the same underlying XML schema but differ in required fields -- PA invoices must include CIG, CUP, and split-payment indicators. Your software should select the correct format based on the recipient type.

How does split payment (scissione dei pagamenti) work? Under split payment, certain buyers (mainly public bodies and listed companies) pay the net amount to you and remit the IVA directly to the treasury. Your invoice shows IVA normally but flags the split-payment mechanism in the XML. The practical effect is that you do not receive the IVA portion -- it goes straight to the state. This affects your cash flow and your ability to offset input IVA against output IVA in the same period.

Can I correct an e-invoice after it has been accepted by SDI? You cannot modify an invoice once accepted by SDI. To correct errors, you must issue a credit note (nota di credito, TD04) referencing the original invoice and then issue a new correct invoice. For minor errors that do not affect the tax base or IVA amount, some practitioners use the flexibility of the XML format, but the safest approach for audit purposes is the credit note / new invoice workflow.

Template link

Use our Italian invoice template to align human-readable layouts with SDI-style data you will still need in XML. Read the invoice tax compliance guide and tax rate lookup tool. Official references include Agenzia delle Entrate and Electronic invoicing. Join InvoiceQuickly early access to coordinate Italian e-invoicing with your global billing.