SdI and FatturaPA: Italian e-invoicing for foreign companies
In Italy every domestic B2B invoice is an XML file in the FatturaPA format that passes through the Sistema di Interscambio (SdI), run by the Agenzia delle Entrate. This has applied since 2019, and since 2024 it covers flat-rate businesses too. An Italian subsidiary of a foreign group is fully covered: an invoice exists only once SdI accepts it.
SdI is a clearance hub
An Italian business does not send an invoice straight to its customer. It sends the file to SdI, which validates it, records it and forwards it to the recipient. If SdI rejects the file, no invoice exists, and the seller must correct and resubmit. Because SdI sees every invoice, the tax authority holds most of the data it needs for VAT, which is why pre-filled VAT records exist and why audits start from mismatches between SdI data and returns.
The Agenzia delle Entrate e-invoicing section publishes the technical rules. The current technical specifications, version 1.9.1, have been usable since 15 May 2026.
The FatturaPA format
FatturaPA is an Italian XML schema that predates the European standard EN 16931. Software built for UBL or CII needs a dedicated FatturaPA module. Points that trip up foreign teams:
- Recipient addressing. Each Italian business has a seven-character recipient code (codice destinatario) or a certified e-mail address (PEC) registered with SdI. If the buyer gives no code and no PEC (code 0000000), the invoice lands in their reserved area on the tax portal. A code that does not exist makes SdI reject the invoice, and a valid code of another business sends it to the wrong channel, so always confirm the code with the buyer.
- Document types and nature codes. Coded lists define the document type (invoice, credit note, self-invoice) and, for lines without VAT, a nature code explaining why. Free text is not accepted.
- Identifiers. The seller's VAT number (partita IVA) and, for individuals, the tax code (codice fiscale) are mandatory.
- VAT rates. Italy applies 22 % standard VAT and reduced rates of 10 %, 5 % and 4 %. Exempt or non-taxable lines carry a nature code instead of a rate.
Credit notes follow the same path: a FatturaPA document that references the original and goes through SdI.
Who must use SdI
📊Who issues through SdI
| Situation | Through SdI? | Note |
|---|---|---|
| Italian company or sole trader, domestic B2B | Yes | Since 1 January 2019 |
| Flat-rate regime (regime forfettario) | Yes | All of them since 1 January 2024 |
| Italian subsidiary or branch of a foreign group | Yes | It is an Italian taxpayer |
| Foreign company only VAT-registered in Italy | Generally no | Confirm establishment status with an adviser |
| Invoices to private consumers | Yes, through SdI | Consumer gets a copy, data reaches the authority |
The regime forfettario allows turnover up to EUR 85,000. Whether a foreign company is "established" in Italy is a factual tax question, so confirm it before you choose an invoicing setup.
Cross-border invoices go through SdI too
Since July 2022 Italy collects cross-border invoice data through SdI instead of the old periodic report (esterometro). An Italian business invoicing a customer in Berlin or Warsaw sends the invoice to SdI with the recipient code XXXXXXX, and delivers a readable copy to the customer separately. For purchases from foreign suppliers, the Italian buyer sends a self-invoice or integration document (types TD17, TD18 or TD19) to SdI. Before applying reverse charge, check the customer's number with a VAT ID check.
Domestic purchase invoices arrive through SdI, not by e-mail. Software either connects to SdI or downloads from the tax portal. Because the data is structured, posting is mechanical.
Practical example
A Berlin engineering firm owns an srl in Milan. The srl invoices an Italian client EUR 1,000 plus 22 % VAT, EUR 1,220 in total. The file goes to SdI with the client's recipient code and counts as issued once SdI accepts it. When the Berlin parent charges the srl EUR 3,000 for management services, the srl sends a TD17 integration document to SdI to report the reverse-charge purchase.
What foreign groups meet most often
📋Setting up an Italian entity for SdI
- Choose the issuing tool – a group ERP usually produces UBL, not FatturaPA. Use an Italian module, an intermediary that converts and transmits, or a local tool.
- Arrange digital identity – portal access and delegations need Italian credentials, which take time for a non-resident director.
- Invoice on time – an invoice exists only once SdI accepts it, so monthly batching can push invoices into the wrong VAT period.
- Plan the archive – e-invoices must be kept in a compliant digital conservation system; the Agenzia delle Entrate offers a free service, or providers offer it.
- Map the codes – document types and nature codes have Italian names; software that maps them saves the finance team time.
Where Italy is heading
SdI is stable and will not be replaced. Under ViDA, domestic systems must become compatible with the EU standard by 2035, and intra-EU digital reporting starts in July 2030. Invoices to Italian public bodies still go through SdI; Peppol is used mainly for purchase orders from the national health service via NSO. A FatturaPA setup is right today, but a tool that also understands EN 16931 will age better.
How Kontevia fits
Kontevia is in early access and ready for SdI: invoices are prepared in the FatturaPA structure with Italian document types and nature codes, incoming FatturaPA files are posted from their structured data, and Italian VAT rates are built into the country rules. A live SdI channel is not promised to every user today. See e-invoicing in Kontevia.
For anyone managing an Italian entity from abroad: SdI is not an add-on to invoicing, it is the invoicing. Plan software, credentials and archive together, before the first invoice.
Official sources
- Agenzia delle Entrate: e-invoicing section
- FatturaPA portal: format and SdI documentation
- Agenzia delle Entrate: Fatture e Corrispettivi service
This article is general information and does not replace advice from a tax adviser. Information valid as of 11 October 2026.
Frequently asked questions
- Does SdI apply to a foreign company selling into Italy?
- A foreign company without an Italian establishment is generally not required to issue invoices through SdI. An Italian subsidiary or branch is an Italian taxpayer and must use it. The Italian buyer reports invoices from foreign suppliers to SdI itself.
- What is the difference between SdI and FatturaPA?
- FatturaPA is the XML invoice format. SdI (Sistema di Interscambio) is the platform of the Agenzia delle Entrate that receives, validates and forwards those files. Every domestic FatturaPA invoice passes through SdI.
- Do businesses under the regime forfettario have to use SdI?
- Yes. Since 1 January 2024 e-invoicing through SdI applies to all taxpayers under the flat-rate regime, regardless of turnover.
- How is an invoice to a foreign customer handled in Italy?
- The Italian seller still sends the invoice to SdI, using the recipient code XXXXXXX for foreign customers, so the data reaches the tax authority. The foreign customer receives a copy, typically a PDF, by another channel.
Topics:SdIFatturaPAItalye-invoicingfattura elettronicaesterometro
Kontevia is in early access. Country-specific behaviour described here reflects the rules of each state, not a promise that every feature is live in your country today.
Bookkeeping that keeps up with EU rules
Send a receipt by chat or e-mail, and Kontevia reads it, posts it under the rules of your country and prepares VAT and the export for your accountant. Early access is open.
Related articles
ViDA explained: what changes for EU businesses by 2030 and 2035
VAT in the Digital Age (ViDA) is EU law since April 2025. It makes structured e-invoices and transaction reporting mandatory for intra-EU B2B supplies from July 2030 and lets member states mandate domestic e-invoicing on their own. Here are the dates, the national mandates already running and what a small business should do now.
Peppol for small businesses: how it works and how to get an ID
Peppol is the open network that carries structured invoices between businesses and public bodies across Europe. This guide explains the four-corner model, what a Peppol ID is, where Peppol is mandatory and how a small business gets connected in four steps.
KSeF 2026: Poland's e-invoicing mandate explained
Since 2026 Polish VAT payers issue domestic B2B invoices through KSeF, the national clearance platform. Here is who is covered from when, what the FA(3) format demands and what a small business or a foreign group with a Polish entity should have in place.