Italy

Italy was the first EU country to make B2B e-invoicing mandatory for almost every business, starting in January 2019. Today every domestic invoice is a structured XML file that passes through the national exchange hub, the Sistema di Interscambio (SdI), run by the tax authority.

Italy uses a clearance model. SdI checks each invoice before passing it to the recipient, and an invoice that has not been accepted by SdI has not been legally issued. This gives the tax authority full visibility of domestic transactions and has made a major contribution to reducing the VAT gap.

Over time, Italy has extended the system to cross-border reporting and to smaller businesses. As a result, e-invoicing is part of everyday business, and any company with an Italian VAT registration needs a working SdI connection

The obligation applies to businesses established or identified for VAT in Italy, for domestic B2B and B2C transactions. Since 2024 this includes businesses under the flat-rate regime. The scope therefore covers practically every Italian business.

Cross-border transactions are also in the system. Invoices issued to or received from foreign businesses must be reported through SdI. Foreign companies with an Italian VAT number, or with an Italian subsidiary, need a solution for issuing, receiving and reporting through SdI.

Every in-scope invoice must be created in FatturaPA XML format and sent through SdI, which checks it and delivers it to the recipient. The recipient is identified by a sevencharacter codice destinatario or a certified email address (PEC). SdI sends delivery and rejection receipts, and the issuer must monitor them.

Businesses must also store invoices in a compliant digital archive (conservazione) for the legal retention period, normally ten years. Cross-border transactions must be reported through SdI within the deadlines that apply. For B2G orders, the national order system (NSO) applies to public healthcare purchasing

The mandatory format is FatturaPA, a national XML format with its own structure and validation rules. Invoices are digitally signed for B2G, and signing is optional for B2B. SdI is the single hub for every invoice. Businesses or their service providers connect to SdI through web services, SFTP or PEC. Public-sector orders through NSO use Peppol-based messaging standards.

HubBroker converts invoice data from your ERP into FatturaPA XML and validates it against the SdI rules before sending, which reduces rejections. We connect to SdI through an accredited channel (verify), track the SdI receipts and report the status back to your ERP.

Inbound FatturaPA invoices from Italian suppliers are collected and delivered to your ERP as structured data, ready to post. Cross-border reporting can be handled through the same connection. For international groups with Italian entities, this means Italy no longer needs a separate local system. Your Italian invoicing runs from the ERP the rest of the group already uses, and HubBroker handles the Italian specifics.