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SDI: All you need to know about the Italian cross-border e-invoicing mandate

January 19, 2022

Written by: Nazar Paradivskyy

Real-time reporting of e-invoices via Italy’s interchange system (SDI) will become required for cross-border transactions in July 2022.

In July 2022, the Esterometro will be abolished in Italy. Real-time reporting of e-invoices via Italy’s interchange system (SDI), already mandatory within Italy, will also become required for cross-border transactions. Here, we answer some frequently asked questions and tell you how your business can prepare.

E-Invoicing in Italy: SDI and Esterometro

In January 2019, Italy was the first country in Europe to have implemented countrywide mandatory B2B e-invoicing. While all domestic invoices must be sent to the Italian Revenue Agency through Sistema di Interscambio (SDI), cross-border invoices have been sent via the periodic tax reporting scheme, Esterometro, (previously, Spesometro).

Italy plans to abolish Esterometro by July 2022 and make real-time reporting via SDI mandatory for cross-border transactions as well.

What does cross-border mean?

Cross-border transactions are those that involve the supply of goods and services to or from parties outside Italy.

What will the cross-border e-invoice format be?

All cross-border invoices (both sales and purchase), similarly to domestic ones, must be submitted by Italian taxpayers to SDI in the FatturaPA format. We previously published information about the XML requirement for FatturaPA that has been mandatory since 2021.

Are there any penalties regarding the cross-border mandate?

A penalty of EUR 2 per invoice and up to a maximum of EUR 400 per month is applicable to transactions carried out in the wrong format starting 1 July 2022.

The penalty is reduced by half, up to a maximum of EUR 200 per month, if the transmission is made within 15 days of the deadline or if the data is correctly transmitted within the same deadline.

Read the full version of Budget Law no. 178/2020 in Italian.

How do you know if your business is ready to face the new cross-border mandate?

It is important that an audit is carried out on these aspects:

You are up to date with changing laws and regulations
You have the necessary information to adapt in a timely manner
Your existing system can ensure connectivity with different government platforms
The system you are using guarantees the support of all possible business document types and formats, which often differ from country to country
You can manage the complexity and multiplicity of solutions and providers

Take the next steps with Pagero

Pagero provides e-invoicing solutions that make it easy to comply with e-invoicing and tax requirements in Italy. We can help you send and receive all your domestic and cross-border invoices to and from SDI Italy. With a single connection, you can not only monitor the status of sending and receiving invoices in real time, but also archive all invoices in the electronic format required by law.