Trade between Italy and Germany grew by 1.2% in 2025, reaching a value of €157.8 billion. This makes Italy one of the most important European trade partners for German business. However, any business that sells goods or services to Italy must observe particular requirements when it comes to invoicing. Tax and formal regulations differ depending on the type of sale.

In this article, you’ll learn what regulations German businesses must observe when issuing invoices to Italy. We’ll also explain when German businesses have to charge Italian VAT, and what differences exist between sales to businesses and those to private individuals, as well as between the supply of goods and the supply of services.

Key takeaways

• An invoice sent to Italy must contain the mandatory invoice details as stipulated by law, and must indicate either German VAT, Italian VAT, or no VAT, depending on the sale.
  
• The B2B supply of goods to Italy might qualify as a tax-exempt intracommunity supply.
  
• For B2B services, the reverse charge procedure often applies, meaning the Italian customer is liable for the VAT.
  
• For the B2C supply of goods, Italian VAT might apply, particularly in the case of intracommunity distance sales.
  
• For B2C services, German VAT is often charged, although different rules apply to certain services.
  

What are the regulations for invoicing Italy as a German business?

There are a number of different national and EU regulations that German businesses must observe when issuing invoices to customers in Italy. Below, we provide an overview of the most important ones.

Invoice details

An invoice sent to Italy must contain the mandatory invoice details stipulated under Section 14, Paragraph 4 of the German VAT Act (UStG). These include:

• Full name and address of the company supplying the goods or services
  
• Full name and address of the recipient of the product or service
  
• Issue date of the invoice
  
• Date of delivery or supply of service (i.e., the performance period)
  
• The tax number issued to the seller by the tax office or the VAT identification number (VAT ID) issued by the Federal Central Tax Office
  
• A sequential, unique invoice number
  
• Quantity and type of products supplied or the scope and type of service rendered
  
• The total price (net price), broken down according to tax rates and tax exemptions
  
• The applicable tax rate and the corresponding tax amount or, in the case of a tax exemption, a note indicating the tax exemption
  

Cross-border B2B transactions within the EU often require additional information. For example, if the German business does not show VAT, then the invoice must contain a corresponding note. For certain cross-border B2B sales, especially the intracommunity supply of goods and certain services, the invoice must include the VAT IDs of both businesses.

Invoice language

German businesses can issue invoices in German or another language. For international sales, it can be a good idea to prepare invoices in English so they’re easier for foreign business partners to understand. The Italian tax authorities might require an Italian translation for sales that are taxable in Italy. Businesses in Germany should therefore check whether their invoice processes meet this requirement.

Electronic invoices (e-invoices)

Italy has a comprehensive e-invoicing system. The Sistema di Interscambio (SdI), managed by the Italian tax authorities, is a centralized platform for sending and receiving e-invoices. E-invoicing became mandatory in 2019 for businesses domiciled in Italy or those with a permanent establishment in the country; invoices are sent and received via the SdI in the structured XML format FatturaPA.

German businesses without a registered office or permanent establishment in Italy are generally exempt from this Italian e-invoicing mandate. However, they might be subject to special reporting or notification obligations in regard to certain transactions.

When do German businesses have to charge Italian VAT?

In addition to the formal requirements for invoicing Italy, German businesses must also consider how to handle VAT on each transaction. Italian VAT is known locally as IVA (Imposta sul Valore Aggiunto). It’s essentially the equivalent of German VAT and is levied on the sale of goods and services.

Whether a German business must charge German VAT, Italian VAT, or no VAT depends on the transaction in question—and, most importantly, on which country the transaction is assigned to for VAT purposes. In addition, a distinction must be made between whether the customer is a business or a private individual and whether the transaction involves the supply of goods or the supply of services.

Stripe Invoicing can help businesses in Germany prepare legally compliant invoices containing all necessary details and efficiently manage payment processes. Depending on the business model, Stripe Invoicing can create one-time or recurring invoices and process payments using a variety of different methods.

What are the VAT rules on invoices issued to Italian businesses?

When invoicing a business in Italy, German companies must make a distinction between invoices for the supply of goods and those for the supply of services. Each of these scenarios is subject to its own set of rules on VAT treatment and invoice format.

Supply of goods

According to Section 4, No. 1 of the UStG in conjunction with Section 6a of the UStG, a B2B supply of goods from Germany to Italy could qualify as a tax-exempt intracommunity supply (ICS). In this case, German VAT is not shown on the invoice. Instead, the German company should indicate that the transaction is a tax-exempt ICS. The invoice must also contain valid VAT IDs for both the German and Italian businesses. One of the requirements for this tax exemption is that the goods are actually transported or dispatched to Italy.

Supply of services

In many cases, German businesses do not charge German VAT on services performed for Italian businesses. For services performed for businesses in other EU member states, the “place of supply” principle under Section 3a, Paragraph 2 of the UStG generally applies. According to this principle, the place of supply is where the Italian business customer conducts its business.

In such cases, the reverse charge procedure typically applies. The tax liability shifts from the German seller to the Italian buyer. Therefore, the German business does not show German VAT on the invoice. Instead, the invoice must include a note indicating the transfer of tax liability.

However, this rule does not apply to every service. Certain services are subject to special rules on determining the place of supply, according to Sections 3a to 3g of the UStG. These services include, among others, those related to real estate, passenger transportation, and cultural and sporting events. Different rules might also apply to short-term vehicle rentals.

What are the VAT rules on invoices issued to private individuals in Italy?

Sales to private individuals in Italy are subject to different VAT rules than sales to Italian businesses. As with B2B sales, the rules differ for the supply of goods and the supply of services.

Supply of goods

If a German business sells goods to a private individual in Italy and ships those goods to Italy, this might constitute an intracommunity distance sale. According to Section 3c, Paragraph 1 of the UStG, the place of supply is where the dispatch or transport ends. This means that Italian VAT must generally be charged.

However, there are regulatory simplifications that apply to certain cross-border distance sales. If the total value of certain intracommunity distance sales and electronically supplied services provided to private individuals in other EU member states does not exceed €10,000 in both the current and preceding calendar year, then German VAT law still applies. That said, a business can voluntarily opt to be taxed in the respective destination country.

If a business exceeds the threshold or opts to be taxed in the destination country, then Italian VAT must generally be charged on any distance sale to Italy. Pursuant to Section 18j of the UStG, businesses can use the One Stop Shop (OSS) to handle this VAT, provided they fulfill certain eligibility criteria. In this case, German businesses can report relevant sales and remit any VAT due centrally via the Federal Central Tax Office (BZSt). This means they do not have to register for VAT in Italy.

Supply of services

Many services performed for private individuals in Italy are subject to the “place of supply” principle. According to Section 3a, Paragraph 1 of the UStG, the place of supply is generally where the German business has its registered office. Therefore, German VAT is due on many B2C services and must be indicated on corresponding invoices. However, as with B2B transactions, there are different regulations for sales of certain B2C services. In such cases, the place of supply would be in Italy, and thus Italian VAT would apply.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

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Learn more about how Stripe can simplify your accounts receivable process, or get started today.

FAQs about invoicing Italy