The invoice is the most common tax document used across all types and sizes of businesses—from freelancers, to sole proprietorships, to large companies. In Italy, the regulatory basis for invoicing the sales of goods and services is the value-added tax (VAT) legislation, specifically Article 21 of Presidential Decree No. 633/1972. There are different types of invoices, each designed for specific situations based on their features.

Understanding the differences between the various types of invoices is key to comply with current regulations, and to effectively manage relationships with customers and suppliers. Among the different types of invoices in Italy, the most common are the immediate invoice and the deferred invoice.

In this article, we will explain what immediate and deferred invoices are, when to issue each type, the main differences between them, and their advantages.

What’s in this article?

• What is an immediate invoice?
  
• What is a deferred invoice?
  
• What are the differences between immediate and deferred invoices?
  
• What are the advantages of an immediate invoice?
  
• What are the advantages of a deferred invoice?
  

What is an immediate invoice?

The immediate invoice is the most common type of invoice; in fact, it’s referred to simply as an “invoice” in the specifications for electronic invoices established by Italy’s tax agency, the Agenzia delle Entrate. These types of invoices must be issued immediately upon completion of a business transaction. If several transactions are made on the same day to the same person, only one invoice needs to be issued.

An immediate invoice can be issued without a delivery note (DDT, from the Italian “Documento di trasporto”) accompanying the goods, but only if it’s issued on the same day that the service described in the invoice or the sale of the goods takes place.

With the introduction of electronic invoicing, the system allows more flexibility for issuing immediate invoices, extending the time frame to within 12 days of providing services or selling goods.

The template for an immediate invoice should include the following information:

• The date of the sale of the goods or the provision of the service
  
• The invoice number in sequential order
  
• The method of payment
  
• The total amount of the goods or services
  
• The VAT (if using the ordinary regime)
  
• Statutory costs or fees where applicable
  

One of the required elements of an invoice is the issue date, and according to Agenzia delle Entrate Circular 14/E/2019, there are three scenarios for immediate invoices:

• The invoice is issued by midnight on the day of the sale, so the transaction date and issue date are the same.
  
• The invoice is generated the day after the transaction and transmitted to the Exchange System (SDI, from the Italian Sistema di Interscambio) within the following 12 days.*
  
• The invoice is generated and sent to the SDI within the issuance deadline.
  

In all three cases, the date of the transaction (sale of goods or provision of services) must be entered into the immediate invoice template.

(*) Note that the original deadline from Circular 14/E/2019 for issuing immediate invoices was established at 10 days, but this was increased to 12 days per Legislative Decree Growth no. 34/2019.

What is a deferred invoice?

A deferred invoice is a tax document issued on a date different from the actual date of sale of goods or provision of services. It allows all transactions made in the same month with the same customer or supplier to be included in a single invoice.

Even in the case of electronic invoicing, deferred electronic invoices must be sent to the Exchange System by the 15th day of the month following the month in which the transactions took place, as provided for in Article 21(4)(a) of Presidential Decree no. 633/1972. In this case, the “Date” field must be filled with the date of the last delivery or the date of the last transaction.

Note that while the deferred invoice is issued after the date of the transactions, the VAT must be paid immediately.

It’s also important to distinguish between a deferred invoice for the supply of goods and a deferred invoice for the supply of services. For the supply of goods, the following information is required:

• Deferred invoice code
  
• Date of issue
  
• DDT (delivery note)
  

When a deferred invoice is issued for the provision of services, instead of a DDT, a set of documents that verify the delivery of the service must be attached. These documents may include proof of payment of the fee, the contract, or a letter of assignment.

As of 2021, to simplify the electronic compilation of deferred invoices, the Agenzia delle Entrate’s SDI has introduced a specific TD (document type) code. Codes for deferred invoices are as follows:

• TD24: This code denotes the supply of goods with a DDT. Additionally, it can be used to indicate the successful delivery of services.

• TD25: This code is only for deferred electronic invoices involving the supply of goods made by the company to a third party through its own supplier (these transactions are called triangular trade). For this type of invoice, also known as a super-deferred invoice, the issuing deadline for the invoice is the end of the month following the month of delivery.

Electronic invoices

As of January 1, 2019, mandatory electronic invoicing was introduced under Article 1, paragraph 916, of Law No. 205 dated December 27, 2017. An electronic invoice is a commercial document that must be generated according to the FatturaPA layout: structured data in digital format written in XML. Therefore, “digital” doesn’t mean a computerized representation (i.e., a scan) of a paper invoice. The electronic document must be created digitally from scratch. In order to be considered issued, electronic invoices must always be transmitted to their recipients through the Agenzia delle Entrate’s SDI—otherwise they are not considered issued. As of January 1, 2024, electronic invoicing will be mandatory for almost all types of businesses, with the following exceptions:

• Individuals who issue invoices to individuals who are not residents or fiscally established in Italy, specifically to foreign countries
  
• Health care providers who submit data to the Sistema Tessera Sanitaria (health card system) and who provide services to individuals throughout 2024
  

Note that, for electronic invoices, the “date of issue” refers to the date of transmission to the SDI of the Agenzia delle Entrate.

What are the differences between immediate and deferred invoices?

Now that we have reviewed the main characteristics of immediate and deferred invoices, let’s summarize the main differences between them.

As mentioned earlier, the main difference between immediate and deferred invoices is that immediate invoices are issued on the date the service is provided or the goods are sold, while deferred invoices can consolidate multiple transactions with the same customer within the same month. There are also differences in the timing of e-invoicing:

• Immediate invoice: Within 12 days from the date of the transaction
  
• Deferred invoice: By the 15th day of the month following the date of the transaction
  

What date should I indicate on the invoice?

Another difference between an immediate invoice and a deferred invoice is the date that should appear on the invoice.

For example, for an immediate invoice, let’s say you sell a product on June 22, 2024:

You can submit the electronic invoice through SDI on the same day as the transaction.

• Transaction date: 06/22/2024
  
• Issue date: 06/22/2024
  
• Invoice number and date: Invoice # x dated 06/22/2024
  
• “Date” field in the “General Data” section of the electronic invoice file: 06/22/2024
  

Alternatively, you can generate the e-invoice on the day of the transaction (in this case, June 22) and submit it via SDI within the next 12 days.

• Transaction date: 06/22/2024
  
• Issue date: By 07/04/2024
  
• Invoice number and date: Invoice # x dated 06/22/2024
  
• “Date” field in the “General Data” section of the electronic invoice file: 06/22/2024
  

You can also create and submit the invoice through the SDI on any day between June 22 and July 4. In this case, the dates are the same as in the previous scenario.

For deferred invoices, Agenzia delle Entrate Circular 14/E/2019 specifies that you can indicate the date of the last transaction as the date of the document. However, this approach can lead to errors in the sequential numbering of invoices. For example, in the case of deferred invoices, this could lead to the issuance of invoice number 100 with the last delivery on June 30 and invoice number 101 with the last delivery on June 25. The Agenzia delle Entrate later clarified that for deferred invoices, the date of at least one transaction should be indicated, preferably that of the last transaction of the month. Alternatively, it is acceptable to indicate the end of the month as the date that represents when the transactions were made.

Managing debits and accounting can become challenging for businesses as they grow. To handle this complexity, you might want to consider using dedicated accounting services. Stripe Billing, for example, can support you in managing recurring fees—whether they are simple pay-as-you-go charges or customized plans negotiated directly by the sales team.

What are the advantages of an immediate invoice?

The advantages of an immediate invoice include:

• Simplified billing procedures: Immediate invoices eliminate the need to issue invoices periodically, such as at the end of each month.
  
• Improved liquidity: Immediate invoices enable businesses to receive payments more quickly, allowing them to reinvest funds in activities aimed at growth.
  

What are the advantages of a deferred invoice?

Deferred invoices can also have several advantages, including:

• Simplified administrative procedures: With consolidated deferred invoices, the number of invoices issued is reduced, thereby streamlining administrative tasks.
  
• Improved cash flow management: Deferred invoices allow businesses to consolidate billing transactions into a single document.
  
• Improved customer relationships: Deferred invoices can help businesses retain existing customers and attract new ones by offering more flexible payment terms and customizing the invoicing process to meet customer needs.