Businesses Operating in Italy
How do businesses comply with Italy's SDI e-invoicing system?
Italy's Sistema di Interscambio (SDI) has operated mandatory B2B e-invoicing since January 2019, one of the earliest EU mandates. All invoices between Italian VAT-registered businesses must pass through the SDI in FatturaPA XML format. SDI validates the invoice, forwards it to the recipient, and notifies the sender of acceptance or rejection. Italy's system is a post-clearance model where invoices are delivered to buyers via SDI.
How does the Italian SDI invoice workflow operate?
The SDI operates as a central hub for all Italian B2B invoice exchange:
- Codice Destinatario: Buyer's SDI routing code (7-character alphanumeric); must be included on the invoice
- Submission: Sender submits FatturaPA XML to SDI via web service, email, or PEC (certified email)
- Validation: SDI checks XML schema conformance, fiscal codes, and data completeness
- Routing: SDI forwards to the recipient's registered routing code or PEC address
- Ricevuta di consegna: SDI issues delivery receipt to sender confirming successful delivery
- Notifica di scarto: SDI issues rejection notification with error codes if the invoice fails validation
- Storage: Agenzia delle Entrate stores all SDI invoices; accessible via the taxpayer's account
Frequently Asked Questions
- What is a codice destinatario and how do recipients get one?
- The codice destinatario is the 7-character alphanumeric address that routes SDI invoices to the correct recipient. Businesses receive their codice destinatario when they register an SDI channel via an intermediario (an accredited technical partner) or directly with Agenzia delle Entrate. Businesses not using an intermediario may use PEC (certified email) as their routing mechanism. Recipients must communicate their codice destinatario to all suppliers.
- How long does the SDI take to process an invoice?
- SDI typically processes and delivers invoices within a few minutes to a few hours. The SDI has 5 calendar days to deliver an invoice to the recipient after receiving it from the sender. If the recipient's channel is unavailable, SDI makes the invoice available in the recipient's taxpayer account area. After SDI delivery, the recipient has 15 days to accept or reject the invoice via the SDI; silence is treated as acceptance.