B2B electronic invoicing in Italy: What it is and how it works

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  1. Introduction
  2. What is B2B electronic invoicing, and does it work?
    1. How to fill in a B2B electronic invoice
    2. Sending to the SdI
    3. Storing B2B electronic invoices digitally
  3. What are the benefits of B2B electronic invoicing?
  4. What are B2B e-invoicing deadlines and penalties for late or omitted invoices?
  5. What is the path toward European B2B electronic invoicing?

Legislative Decree No. 52 of 21 March 2014 introduced electronic invoicing in Italy. Initially, this obligation applied only to invoicing for public entities. However, as of 1 January 2019, Budget Law 2018 also made B2B electronic invoicing mandatory.

Until 2023, certain categories of taxpayers were still exempt. However, Decree Law 36/2022, which implements measures for the National Recovery and Resilience Plan (PNRR), made electronic invoicing mandatory for those under the minimum and flat-rate tax regimes as well as amateur sports associations. As of 2024, electronic invoicing is mandatory for almost all value-added tax (VAT) holders.

In this article, we explore B2B e-invoicing in Italy, how to issue a B2B e-invoice, and the requirements and deadlines to avoid penalties.

What’s in this article?

  • What is B2B electronic invoicing, and how does it work?
  • What are the benefits of B2B electronic invoicing?
  • What are B2B e-invoicing deadlines and penalties for late or omitted invoices?
  • What is the path toward European B2B electronic invoicing?

What is B2B electronic invoicing, and does it work?

B2B electronic invoicing applies to transactions between VAT-registered businesses and professionals. It differs from public administration (PA) e-invoicing directed at public entities and B2C e-invoicing for individuals without a VAT number.

The B2B electronic invoicing process consists of three steps:

  1. Creation of the invoice in extensible markup language (XML) format using B2B electronic invoicing software
  2. Transmission of the invoice to the Agenzia delle Entrate’s Exchange System (SdI)
  3. Digital storage in compliance with regulations
B2B electronic invoicing process in Italy - The steps involved in the B2B electronic invoicing process in Italy, including creating, transmitting, and storing invoices.

How to fill in a B2B electronic invoice

To complete a B2B e-invoice, you must include the customer’s details, information about the products or services provided, and amounts. Additionally, you will need to enter the recipient code or the customer’s certified email (PEC) address.

The recipient code – also called the “SdI code” or “SdI recipient code” – is a 7-digit alphanumeric code linked to the SdI. Its purpose is to ensure the correct delivery of an electronic invoice to a business or professional by identifying the software or web tool the invoice recipient uses. This enables the recipient to receive invoices directly into their B2B electronic invoicing software.

Alternatively, you can use the customer’s PEC address to ensure proper delivery of the electronic invoice. If you don’t have it available, you can use the National Index of Certified Electronic Mail Addresses (INI-PEC) portal to trace the PEC address of companies and professionals by entering other known information about your client.

Sending to the SdI

The SdI verifies that the invoice contains all required tax information and checks the validity of the supplier’s and customer’s VAT numbers. After passing these checks, the SdI sends the invoice to the customer and issues a delivery receipt to the supplier.

You can only consider an invoice issued upon its transmission to the SdI. If it’s not transmitted, it is not issued.

Storing B2B electronic invoices digitally

You must store B2B electronic invoices for a minimum of 10 years using “substitute storage” (as they replace paper invoices). This is a specific procedure which law (i.e. Digital Administration Code [CAD]) regulates; therefore, it’s not sufficient to simply save the document on an electronic device.

For archiving, taxpayers can use the systems from the Agenzia delle Entrate through the Invoices and Receipts portal or opt for B2B e-invoicing software that includes regulation-compliant preservation functionality.

What are the benefits of B2B electronic invoicing?

The introduction of B2B electronic invoicing has brought several benefits. Here are the most important:

  • Simplified tax authority controls: This leads to a more effective fight against tax evasion.

  • Digitisation: Electronic invoicing is part of a broader trend of digitisation and streamlining of business processes, which helps increase competitiveness with businesses in both European and non-European countries.

  • Decreased costs: E-invoicing limits overhead costs because businesses no longer have to print and mail invoices.

  • Process optimisation: Using e-invoices reduces errors (by eliminating manual data entry), shortens payment times, and prevents lost invoices.

What are B2B e-invoicing deadlines and penalties for late or omitted invoices?

Deadlines for issuing electronic invoices depend on whether they are immediate or deferred invoices:

  • For immediate invoices: 12 days from the date of the transaction
  • For deferred invoices: By the 15th day of the following month

In the event of failing to issue or issuing an electronic invoice late, penalties apply as regulated by Legislative Decree No. 471 of 18 December 1997, later amended by Articles 2 and 3 of Legislative Decree No. 87 of 14 June 2024, which took effect on 1 September 2024. These are:

Penalties for missing or late invoices | Stripe - Penalties for electronic invoices omitted, late, or with errors.

If penalties are applicable, you can use the voluntary correction process to obtain a reduction in penalties, which vary depending on how promptly you correct errors or omissions.

Managing the invoicing process for businesses can become complex, especially as your business grows. Some tools, such as Stripe Invoicing, a comprehensive and scalable platform, can help automate this process. With Invoicing, you can create and send invoices for both one-off and recurring payments without needing to write any code. With Invoicing, you can save time and receive payments more quickly, as users are able to collect on 87% of Stripe invoices within 24 hours. Additionally, through collaboration with third-party partners, you can use Invoicing for electronic invoicing as well.

What is the path toward European B2B electronic invoicing?

Italy was the first country in Europe to introduce mandatory B2B e-invoicing, followed by Romania in 2024. Other countries, such as Germany, will implement mandatory B2B e-invoicing in 2025.

Currently, individual European countries determine their own e-invoicing legislation, but a common approach has emerged that will gradually lead to mandatory B2B e-invoicing across the EU. In fact, on 5 November 2024, the Economic and Financial Affairs Council (ECOFIN) reached an agreement on the VAT in the Digital Age (ViDA) package, which governs the current application of VAT in Europe. In practice, mandatory B2B electronic invoicing for intra-EU transactions starts on 1 July 2030.

For Italy, there should be no significant impact until 2030, as the SdI can handle electronic invoices that comply with European standards. However, if you have a business in Italy that trades with other EU countries, you will need to stay updated on changes in regulations regarding B2B electronic invoicing in the countries where your trading partners are located.

The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.

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