Return to mapElectronic invoicing and e-Reporting in Italy
The electronic invoicing system in Italy is called the SDI. It is the beacon of electronic invoicing in Europe, being the first country in the Union to have implemented its mass use for B2B and B2G transactions before the implementation of the European Directive 2014/55/EU which established mandatory e-invoice reception for public administrations. The electronic invoice has been mandatory for public administrations under the Fattura PA model since 2014 and became mandatory for B2B transactions. In the public health sector there also exists an additional flow regulating electronic orders through the NSO.
Features of Electronic Invoicing in Italy
Agenzia delle Entrate is the official tax authority in Italy, responsible for managing and enforcing the country's tax system. It plays a central role in administering compliance with fiscal laws, collecting taxes, and overseeing e-invoicing and reporting processes.
The Sistema di Interscambio (SdI) is Italy's centralized electronic invoicing platform, operated by the country's tax authority, Agenzia delle Entrate. It plays a critical role in the Italian e-Invoicing ecosystem by acting as an intermediary that validates, processes, and delivers invoices between suppliers and recipients.
Mandatory Use
The use of electronic invoice in Italy is mandatory for public administrations and private companies.
Public Administration (B2G)
Since March 31, 2015, electronic invoicing has been obligatory for all suppliers of goods and services to public administrations in Italy.
Public entities are required to reject invoices that are not transmitted electronically or do not comply with the prescribed format.
Private Sector (B2B and B2C)
As of January 1, 2019, e-Invoicing became mandatory for all domestic transactions between private companies (B2B) and for transactions with individual consumers (B2C). This includes both VAT-registered entities and non-VAT-registered taxpayers operating within Italy.
Cross-Border Transactions (Esterometro)
While initially excluded from the e-Invoicing mandate, cross-border transactions were subject to a separate reporting obligation via the esterometro. As of July 1, 2022, this requirement has been replaced by the submission of e-Invoices for cross-border transactions, further harmonizing compliance processes.
Exemptions
Certain categories are exempt from the mandatory e-Invoicing requirements, including micro-enterprises with an annual turnover below €25,000, healthcare providers (for transactions involving sensitive data), and non-resident companies operating in Italy without a permanent establishment.
Invoice Format
The mandatory e-Invoicing in Italy is based on the FatturaPA format, a standardized electronic invoice structure developed by the Italian government. This XML-Based format ensures uniformity, compliance, and interoperability across businesses and public administrations.
Administrative Requirements
It is necessary to register the reception method for the reception of the B2B invoice. The Codice Destinatario enables the identification of the communication channel between the SdI and the recipient.
Electronic Signature
The invoice issuance process directed to public administrations can include a qualified digital signature from a secure invoice generation device. The digital signature is not mandatory for B2B transactions.
Substitute Archiving in Italy
Substitute Archiving was established to provide Italian companies with a regulatory framework for digitizing and preserving paper documents in compliance with the Conservazione Sostitutiva law. Documents digitized and preserved under these guidelines are guaranteed legal validity.
This framework requires businesses to use document exchange platforms that facilitate electronic storage and simplify the transition from paper to digital records. All tax-relevant documents must be digitized and preserved electronically in line with these regulations.
The law ensures two key conditions for archived documents:
- Integrity: Certifies that the document has not been altered.
- Authenticity: Identifies the author of the document.
These conditions are guaranteed through processes like digital signatures and time stamping.
While Substitute Archiving revolutionized document management by enabling the digitization of paper records, the focus has shifted toward Digital Preservation or Electronic Archiving, which applies to all types of documents, whether digital or analog in origin.
Applications of electronic archiving to the norm
Digital Preservation is mandatory for documents with fiscal relevance, including electronic invoices, certified emails (PEC), contracts, digitally signed documents, and order confirmations. Below are key applications:
Preservation of Electronic Invoices
Electronic invoices and accounting records must be digitally preserved for 10 years from the date of issuance, ensuring compliance with fiscal regulations.
Preservation of Expense Notes
Expense notes and supporting documents must be stored similarly to invoices, with measures to guarantee their authenticity and integrity.
Preservation of Approval Workflows
- Documents like commercial proposals, supplier invoices, and contracts undergo approval processes involving multiple stakeholders.
- Depending on the document's importance, approvals may use advanced features like electronic signatures, certificates, or two-factor authentication.
- Preservation includes not only the final document but also the evidence of approvals, captured via time-stamped records that provide legal guarantees in case of disputes.
Preservation of Certified Digital Emails (PEC)
PEC (Posta Elettronica Certificata), Italy’s certified email system, provides legal value equivalent to registered letters. Due to their potential fiscal relevance, PEC emails must also be digitally preserved.
Key Tool: Evidence Reports
A comprehensive report tracks all steps and modifications made to a document, from its issuance to final approval. This report, signed by a trusted third party, ensures full traceability and strengthens its legal standing.
Frequently Asked Questions
Below are some of the most frequently asked questions about the electronic invoicing system in Italy.
Is our system ready to issue electronic invoices?
Companies must assess if their management system and administrative procedures are ready to adapt to the issuance of electronic invoices to the SdI. Companies need a technology supplier that can integrate with their ERP to convert data into the requires structured formats.
EDICOM can integrate with all major ERPs in the market (SAP, Microsoft, Dynamics, Sage, etc.) and can adapt itself to process data and covert it to the format required by the recipient. Our solution is cloud based and does not require any local installation for clients. All maintenance and infrastructure updates are performed by our specialized teams.
If we already issue electronic invoices, how do we adapt our current system to the public or private sector?
Companies that already Exchange electronic data with their commercial partners or with public administrations use files with a structure agreed to by both parties. In Italy the introduction of the Fattura B2B has regulated these exchanges in favor of a precise XML format, which usually differs from the many formats already used by companies.
In these scenarios it is important to assess the information required by the SdI to adapt to the new format. We can also assess your current PDF format to send it to final clients along with the regulated XML.
EDICOM can perform this assessment and prepare the structured message to guarantee compliance with the SdI mandated format and also consider any additional information requested by your trading partners.
Do we have a qualified time stamping and digital signature service to ensure the authenticity of invoices?
According to European legislation and the new eIDAS regulation that regulates electronic identification and trust services for electronic transactions in the internal market, electronic invoices must be digitally signed and accompanied by a time stamp to guarantee their authenticity and non-repudiation.
As a supplier of qualified trust services EDICOM can offer both certified services according to the eIDAS European Regulation about trust mechanisms for electronic transactions.
How can we securely Connect with the SdI to issue our invoices?
Once converted to the correct format and digitally signed and time stamped companies must send the document to the SdI using a secure channel. The Exchange system has defined entry and exit channels for B2B invoices which can be accessed through the EDICOM platform.
A secure communication channel is created Through EDICOM’s Public Administration HUB to the SdI with a communication protocol. Our PA HUB also makes it possible to Connect with any public body inside and outside the European Union.
How can we receive and integrate notifications from the SdI like those from the recipient?
To facilitate the management of invoices a notification flow has been created that gives issuers better visibility to the invoice status. The SdI issues a first notification regarding the conformity of the invoice.
To guarantee the more efficient and agile management of invoices the EDICOM platform performs a syntactic validation before sending invoices to the SdI, informing our clients of any issues at the field or digital signature level.
Our HUB also receives the status notifications issued by the SdI and by recipients to the SdI.
With EDICOM’s solution all received notifications can be integrated automatically to your ERP. If your ERP is not ready to integrate the notifications EDICOM’s platform also includes a web portal that acts as a user friendly interface to manage your invoices.
How can we comply with the e-Archiving norms regarding electronic invoices and the Conservazione sostitutiva?
Companies that issue and recieve electroniv invoices must archive these documents for a mínimum of 5 years. The Archiving must be conducted according to the the "Archiving Electrónico" specifictions which requires the signature and time stamp to be applied on archived documents to guarantee their authenticity.
EDICOM provide’s its clients with a certified long term archiving solution called EDICOMLta. Clients can archive all invoices with their respective reception notification from the SdI for the required time. Through the eIDAS certification EDICOM guarantees the integrity of electronic documents stored in its solution for an extended period using digital signatures and time stamps. EDICOM is a qualified trust service provider and gives legal and judicial value to documents, giving it the responsibility of providing legal proof that the document has not been tampered according to European Law.
Is our ERP ready to integrate received invoices?
The Exchange of B2B invoices in Italy will have a considerable impact on all Italian companies, particularly when it comes to their issuance. However, it is important to remember that invoice reception and integration is a major part of the flow. Therefore, it is important to use a solution that can facilitate integrations of sent and received invoices.
EDICOM provides solutions that facilitate the issuance and reception of electronic invoices through integrations with ERPs. EDICOM’s integrated solutions help you optimize your accounting by integrating all the data you need automatically for accounts payables and receivables, while guaranteeing the authenticity of that data through the verification of digital signatures on received invoices.
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