Educational guide
How to Invoice in Italy
Electronic invoicing through the Sistema di Interscambio is mandatory for most B2B and B2C relationships.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
Invoicing in Italy is built around mandatory electronic invoicing through the Sistema di Interscambio (SdI). Since January 2019, all domestic B2B and B2C invoices must be transmitted in FatturaPA XML format through SdI, which validates each document before forwarding it to the recipient. Paper or PDF invoices are not legally valid for Italian domestic transactions — the XML file processed by SdI is the only legally recognized invoice.
The standard IVA (Imposta sul Valore Aggiunto) rate is 22%, with reduced rates of 10% for hospitality and renovation services, 5% for certain food and medical supplies, and 4% for basic food staples and first-home purchases. Every invoice must include the seller's Partita IVA (11-digit VAT number) and Codice Fiscale, the buyer's identification details including their Codice SDI (7-character recipient code) or PEC (certified email) for e-invoice delivery, and a complete IVA breakdown with exemption codes (N1 through N7) where applicable.
Italy's split payment mechanism (scissione dei pagamenti) applies to invoices directed at public administration and certain large entities, where the buyer pays IVA directly to the Treasury instead of the seller. Businesses operating under the regime forfettario (flat-tax regime for small businesses) do not charge IVA but must still issue e-invoices through SdI since January 2024. Payment by bonifico bancario (SEPA bank transfer) is the standard B2B method, and Italian AP cycles commonly run on 60 or 90 days fine mese (end of month). All invoice records must be retained for 10 years in digital format, and the bollo virtuale (€2 revenue stamp) must be applied on invoices over €77.47 when IVA is not charged.
Invoice checklist: common fields in Italy
What buyers, auditors, and tax authorities often expect to see on a commercial invoice. “Required” reflects typical compliance expectations for registered businesses—not every sole trader scenario.
Seller Name & Address
Usually requiredRagione sociale, sede legale, and Partita IVA as registered with Agenzia delle Entrate. Include the Codice Fiscale and, for companies, the Registro Imprese (business register) number.
Buyer Name & Address
Usually requiredFull legal name, address, Partita IVA, and Codice SDI (7-character recipient code) or PEC address for SdI e-invoice delivery. For individuals, include the Codice Fiscale instead of Partita IVA.
Invoice Number
Usually requiredSequential number within the calendar year, and each numbering series must be unbroken. Multiple series are permitted if each maintains independent sequential integrity throughout the year.
Invoice Date
Usually requiredDate of issue (data emissione). Invoices must be transmitted to SdI within 12 days of the date of supply. The SdI timestamp confirms official receipt and validation.
Partita IVA / Codice Fiscale
Usually required11-digit Partita IVA for businesses and 16-character Codice Fiscale for individuals. Both are mandatory identifiers in the FatturaPA XML schema and are validated by SdI.
Tax Breakdown
Usually requiredImponibile (taxable base), aliquota IVA (rate), and imposta (IVA amount) per line. When IVA is not charged, the appropriate exemption code (N1 through N7) and legal reference must be cited.
Currency
Usually requiredEUR is required for SdI transmission as the legally recognized currency. Foreign currency amounts can be shown alongside for reference, but all IVA calculations must be in EUR.
Payment Terms
Often optionalCommon terms are 30, 60, or 90 days fine mese (end of month). D.Lgs. 231/2002 governs late payment interest for commercial transactions and provides for automatic penalties.
Bollo Virtuale
Usually requiredA virtual revenue stamp of €2 must be applied on invoices exceeding €77.47 when IVA is not charged. The bollo is declared and paid quarterly through the Agenzia delle Entrate portal.
Tax and regulatory themes in Italy
IVA (VAT)
Standard 22%, reduced 10% (hospitality, renovations), 5% (certain food, medical), and super-reduced 4% (basic food, first-home purchases). Regime forfettario exempts small businesses from charging IVA.
Mandatory E-Invoicing (SdI)
All domestic invoices must pass through the Sistema di Interscambio in FatturaPA XML format. SdI validates, assigns a unique ID, and delivers to the recipient via Codice SDI or PEC.
Split Payment
When invoicing public administration and certain entities, IVA is paid directly to the Treasury by the buyer instead of the seller. The invoice shows IVA but marks it as 'scissione dei pagamenti.'
Popular payment methods in Italy
Methods commonly used for B2B and freelance payments. Availability depends on banks, platforms, and contract terms.
- Bonifico bancario (SEPA bank transfer)
- Carta di credito/debito
- SDD (SEPA direct debit)
- Satispay (mobile payments)
- Assegno bancario (declining)
Business and cultural tips for Italy
- All domestic invoices must go through SdI — emailing a PDF is not legally valid. Make sure you have your client's Codice SDI or PEC address.
- Italian AP cycles often work on 60 or 90 days fine mese (end of month). Negotiate terms clearly upfront.
- Include the bollo virtuale (€2 revenue stamp) on invoices over €77.47 when IVA is not charged — it's legally required.
- Forfettario (flat-tax regime) businesses do not charge IVA and must state the exemption reference on every invoice.
- Always obtain the buyer's Codice SDI before issuing the first invoice. Using the wrong code causes SdI to reject or misdeliver the document.
- Italian businesses value personal relationships — a courtesy phone call or email confirming invoice receipt can accelerate payment processing.
- Transmit invoices to SdI within 12 days of the supply date. Late transmission triggers automatic penalties calculated on the IVA amount.
- When invoicing public administration, confirm whether split payment applies. Under scissione dei pagamenti, you receive only the net amount while IVA goes directly to the Treasury.
Invoicing in Italy: common questions
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for Italy.
Start Invoicing in Italy
When your process is clear, tools help you stay consistent. Billed supports professional invoices, payment links, and records—use alongside advice from your local professional.
No credit card required. Cancel anytime.