Navigating Italian evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.
In the guide, we will cover:
Regulations Timeline
Italian E-invoicing Requirements (2025 Updated)
Tax Regulations
Digital Reporting
Penalties
Achieving Global Invoicing and Tax Compliance with Space Invoices
Regulations Timeline
A quick overview of all current and upcoming regulations that Italy mandates regarding e-invoicing and digital reporting. For a complete list of countries with mandatory B2B e-invoicing regulations, click here. For a comprehensive general guide to e-invoicing regulations by country, click here.
Regulations in Effect:
Mandatory e-invoicing for all B2G, B2B and B2C transactions.
Upcoming Changes to Italian E-invoicing:
From 1 April 2025: Italy is updating its e-invoicing rules with version 1.9.
From 2026: Transition to cloud fiscalization.
For more details, click here.
Italian E-invoicing Requirements (2024 Updated)
In Italy, e-invoicing is mandatory for all B2G, B2B and B2C transactions.
To support e-invoicing, Italy has implemented:
The PEPPOL network
Directive 2014/55/EU
A centralized platform known as Sistema di Interscambio (SdI).
Governmental Body Responsible for E-invoicing
The Agenzia delle Entrate is responsible for e-invoicing regulations in Italy.
Click here to visit their official website.
E-invoicing Formats
In Italy, e-invoices are typically exchanged using the XML format, usually in either FatturaPA or PEPPOL BIS Billing 3.0. Businesses connect to Sistema di Interscambio (SDI).
E-invoice Requirements
Invoices have to be issued in electronic form and must include the following components:
Unique Identification Number;
Date of issuance;
Reference number for tracking;
Identification of the Seller and the Buyer: full name, address and VAT identification number;
Tax Representative Information (if applicable): the VAT number and address, if the supplier is not based in Italy.
Information about Goods or Services Provided: description, quantity, unit price;
VAT Information: total amount excluding VAT, applicable VAT rate, different VAT rates(if they apply) and total VAT amount;
Total amount Including VAT;
Payment terms: details of the payment terms, including due date and payment method;
Regulatory Information: Any additional legal information required, such as reverse-charge transactions, exemptions, or intra-community supplies.
Certain transactions may require additional or less information:
B2C Transactions:
Simplified Invoices Include:
E-invoice Archiving
E-invoices must be archived for a minimum of ten years.
Tax Regulations
Value Added Tax (VAT)
In Italy, the standard VAT rate is 22% and applies to most goods and services.
However, Italy also enforces reduced VAT rates:
10% rate: Applies to various items, like medicines, and some tourism services;
4% rate: Applies to foodstuffs, books and others.
Corporate Tax
The standard corporate tax rate in Italy, known as IRES, is 24%. Companies in Italy are also subject to a regional tax known as IRAP with a standard rate of 3.9%, but it can vary depending on the region and specific local regulations.
VAT on Digital Services in Italy
Digital services in Italy are generally subject to an 22% VAT. However, foreign companies selling digital services to Italian consumers have some extra regulations:
EU- based businesses are required to register for VAT in Croatia or opt for the EU's One-Stop Shop (OSS) scheme, if their annual turnover from these services exceeds €10,000.
Digital services that are subject to VAT include e-books, software downloads, music, movies, games, and other electronically supplied services.
Digital Reporting
Italy has already taken major steps in digitalizing its tax and invoicing processes, with even more changes on the way:
E-invoicing is mandatory for B2G, B2B, and B2C transactions across all companies.
Electronic filing of VAT Returns and Payments through online portal Entratel/Fisconline.
Fiscalization is already mandatory, and the country is now preparing for the next phase, with Cloud Fiscalization set to roll out soon.
VAT Registration Thresholds
VAT registration threshold for domestically established businesses is €85,000.
For EU-based businesses engaged in distance selling of goods or services to Italian consumers, the threshold is €10,000.
Non-EU businesses selling into Italy have no VAT registration threshold; they are required to register for VAT immediately upon beginning sales of goods or services to Italian consumers.
VAT Returns and Payments
The reporting frequencies are as follows:
Monthly: Reports must be submitted by the 16th day of the month following the reporting period. Mandatory for businesses with a turnover exceeding €500,000 for services and €800,000 for goods.
Quarterly: Reports must be submitted by the last day of the second month following the quarter's end. Mandatory for businesses with a turnover less than €500,000 for services and €800,000 for goods.
Annually: Reports must be submitted by the 30th April of the year following the reporting year.
Penalties
If an e-invoice is sent late to the Sistema di Interscambio (SDI), penalties range from €250 to €2,000 per invoice.
For e-invoices not issued in the required XML format, the penalty can range from 90% to 180% of the VAT amount on the invoice. If a purchase invoice is issued to a client without following the mandated requirements, a penalty of 100% of the VAT amount could be imposed.
If the invoice is not correctly communicated, there is an administrative penalty ranging from €2 to €400 for each invoice. The penalty is halved if the correction is made within 15 days.
Achieving Global Invoicing and Tax Compliance with Space Invoices
One way to comply with (e-)invoicing, tax, and reporting regulations in Italy is to use a provider like Space Invoices.
You will be able to:
Have one API for current and future global tax and invoicing compliance, including Italy
Save time and money with integration that takes less than a week
Support and upsell your clients worldwide, including Italy
Ensure all documents are archived and successfully reported to responsible institutions
Become a one-stop shop for current and future clients
Streamline processes and eliminate manual errors, saving time and money
Do you have questions about achieving compliance in Italy?
We are ready to help.
The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on March 25, 2025.
Looking to automate real-time reporting and tax compliance for Italy? Let's talk