In Italy, electronic invoicing is part of everyday business life for almost every type of business. When getting started, you come across abbreviations such as SdI, XML, recipient code and PEC, which seem more complicated than they really are. This is a practical, jargon-free guide to understanding how the system works and what to check every time you issue an electronic invoice.
What Is an Electronic Invoice? A Simple Explanation
An electronic invoice is not a PDF. It is an XML file in a standardised format (FatturaPA), which is sent to the Exchange System (Sistema di Interscambio – SdI) operated by the Italian Revenue Agency. The SdI checks the file and forwards it to the customer. The PDF you view or print is simply a human-readable copy.
What You Need to Issue an Electronic Invoice
- Your details: VAT number, tax identification number, registered business address and tax regime.
- Your customer's details: VAT number or tax identification number and a delivery address.
- The delivery channel: the customer has either a seven-character recipient code (codice destinatario) or a PEC certified email address. If they use a PEC address, enter «0000000» in the recipient code field.
- Invoice line items with descriptions, quantities, prices and VAT rates.
- For VAT-exempt or zero-rated items: the reason (the so-called «nature of the transaction»), for example, an exempt or out-of-scope transaction. A zero VAT rate without a specified reason will result in the invoice being rejected.
When Should It Be Issued?
Invoice issuance deadlines are governed by specific rules and may change. In general, an invoice must be issued within a few days of the transaction (the standard deadline is currently twelve days), with certain exceptions for deferred invoices. Always check how the rules apply to your specific situation with your accountant.
The Most Common Mistakes
- Incorrect or missing recipient code: the invoice will still reach the customer, but it will be available in their Italian tax account («cassetto fiscale») rather than in their invoicing software.
- Invalid VAT number or tax identification number: check these details before issuing the invoice.
- Missing VAT transaction nature for zero-rated transactions.
- Gaps in invoice numbering or inconsistent dates.
- Incorrect totals (often caused by manual rounding).
This is why it is better to let your invoicing software handle calculations and validation checks rather than relying on a spreadsheet.
What Happens If the SdI Rejects the Invoice?
It happens: the file contains a formal error. The invoice is not considered issued and must be corrected and resubmitted. The rejection notification explains the reason. If the error concerns customer details (VAT number or recipient code), it is usually enough to correct them and submit the invoice again. If, on the other hand, the amounts or line items are incorrect, a different procedure is required (we cover this in our article on credit notes).
What CursusOffice Does
CursusOffice prepares the document and generates the XML file in the FatturaPA format, checking it against the official specifications before making the file available to you. It flags invalid VAT numbers and tax identification numbers, requires the VAT transaction nature when the rate is zero, and calculates totals and VAT server-side using consistent rules throughout the system. You can download the XML file for every issued invoice and submit it through the channel you already use. The courtesy PDF follows the language and template you select. Once a document has been issued, it cannot be modified: any corrections must be made using a credit note.
In Summary
- An XML file, not a PDF.
- Delivery through a recipient code or PEC.
- A specified VAT transaction nature for zero-rated items.
- Check VAT numbers and invoice numbering before issuing.
- Consult your accountant about deadlines and special cases.
