🇮🇹

Invoicing from Italy

Italian VAT (IVA) guide for service businesses

22%

Standard Rate

10%

Reduced Rate

IT

VAT Prefix

IVA

Local Name

VAT Registration in Italy

In Italy, VAT is called IVA (Imposta sul Valore Aggiunto). You register with the Agenzia delle Entrate to obtain a Partita IVA (VAT number).

Regime Forfettario (Flat-Rate Scheme)

Italy offers the regime forfettario for small businesses with revenue below €85,000. Under this scheme, you don't charge IVA but pay a flat 15% tax (5% for new businesses in first 5 years) on a percentage of revenue.

Include on invoices: "Operazione effettuata ai sensi dell'art. 1, commi da 54 a 89, L. 190/2014 - Regime forfettario."

E-Invoicing (Fatturazione Elettronica)

Italy requires mandatory e-invoicing through the SDI (Sistema di Interscambio) for B2B and B2C transactions. All invoices must be in XML format and transmitted via SDI.

VAT Rates

Rate type	Percentage
Standard	22%
Reduced	10%
Second reduced	5%
Super-reduced	4%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

Invoice Requirements (Fattura)

Italian invoices must include:

Your details

1 Business name and address

2 Partita IVA and Codice Fiscale

Client details

3 Client name, address, and tax IDs

4 Codice Destinatario or PEC (e-invoicing)

Invoice details

5 Invoice number (numero)

6 Invoice date (data)

7 Description of services

Amounts

8 Taxable amount (imponibile)

9 IVA rate and amount

10 Total amount + payment terms

Bollo (Stamp Duty)

A €2 stamp duty (bollo) is required on invoices exceeding €77.47 when the invoice is exempt from IVA (e.g., regime forfettario invoices).

Cross-Border Invoicing

To EU Businesses (B2B)

For B2B services to other EU countries, inversione contabile (reverse charge) applies. Invoice at 0% and include the client's VAT number.

Required invoice note

"Operazione non soggetta ad IVA ai sensi dell'art. 7-ter del DPR 633/72"

These invoices must still be transmitted via SDI (use Codice Destinatario XXXXXXX for EU clients).

To EU Consumers (B2C)

For most services to consumers in other EU countries, charge Italian IVA (22%). For digital services, you may need to register for OSS and charge the destination country's VAT rate.

Outside the EU

Services to clients outside the EU are non-taxable. Invoice without IVA.

Required invoice note

"Operazione non soggetta ad IVA ai sensi dell'art. 7-ter del DPR 633/72."

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. For EU B2B sales, the correct inversione contabile treatment is applied. All required invoice notes for Italian fatture are included automatically.

Learn more about reverse charge →

Partita IVA Format

Italian VAT numbers follow the format: IT + 11 digits.

Example

IT12345678901

The first 7 digits identify the taxpayer, digits 8-10 identify the province, and the last digit is a check digit.

Common questions

What is the SDI and is it mandatory? ⌄

The Sistema di Interscambio (SDI) is Italy's mandatory e-invoicing system. All B2B and B2C invoices must be transmitted in XML format through SDI. Paper and PDF invoices are not valid.

What is a Codice Destinatario? ⌄

The Codice Destinatario is a 7-character code identifying the recipient for SDI delivery. For EU clients, use XXXXXXX (seven X's). Italian businesses have their own codes.

How does the regime forfettario work? ⌄

The regime forfettario is a simplified tax regime for small businesses with revenue below €85,000. You don't charge IVA but must include the exemption note referencing Article 1, commi 54-89, L. 190/2014.

Do I need to send e-invoices to EU clients? ⌄

Yes. Even invoices to other EU countries must be transmitted via SDI using the generic Codice Destinatario XXXXXXX. The XML must still be compliant with Italian fattura elettronica specifications.

Disclaimer: This guide covers common scenarios for service businesses invoicing from Italy. For complex situations, confirm requirements with your commercialista.