# Italy playbook: SdI e-invoicing, conservation and periodic VAT reporting

Italy has run broad domestic electronic invoicing through the Sistema di Interscambio (SdI) for years, so the question for a new entity is rarely whether to e-invoice. It is whether your ERP keeps the invoice, the SdI outcome, delivery and legal conservation as separate, traceable events, and whether the quarterly and annual VAT reporting agrees with what went through SdI.

**Data for Italy on this site:** [Italy country page](https://erplocalization.com/italy/) · [Italy × ERP e-invoicing support](https://erplocalization.com/italy/#e-invoicing) · [Italy e-invoicing status](https://erplocalization.com/e-invoicing/#status-italy)

This playbook follows the same structure as the other country playbooks: what applies, the operating model, returns, an ERP checklist, a worked example and the exceptions to plan for. The facts come from the [Italy page](https://erplocalization.com/italy/) and its official sources. ERP support is on the [Italy e-invoicing matrix](https://erplocalization.com/italy/#e-invoicing).

## What applies

- **E-invoicing.** Structured XML invoices submitted to SdI for the covered domestic business and consumer population, with separate rules for public administration, retail receipts and cross-border transactions. The authority's general guide explains the architecture but is not a complete current list of exemptions ([Revenue Agency invoicing guide](https://www1.agenziaentrate.gov.it/web_app_entrate/fatturazione_elettronica.html)).
- **Conservation.** Legal electronic conservation is a separate process from saving files in a folder ([Revenue Agency guidance on conservation](https://agenziaentrate.gov.it/portale/web/guest/aree-tematiche/fatturazione-elettronica/guida-fatturazione-elettronica/come-predisporre-inviare-ricevere-fe/come-si-conservano-fe)).
- **VAT reporting.** The periodic VAT settlement communication (LIPE) and the annual VAT return, as listed below.

*VAT returns and audit files for this country, from this site's data*

| Requirement | Type | Frequency (from the country page) | Status on this site |
|---|---|---|---|
| [Annual VAT return](https://erplocalization.com/italy/#req-it-vat-annual) | ordinary return | Annual | verified |
| [Periodic VAT settlement communication](https://erplocalization.com/italy/#req-it-vat-lipe) | ordinary return | Quarterly | verified |

The LIPE row gives the deadline as the last day of the second month after the quarter, with the fourth quarter allowed in the annual return; the annual return row gives the current filing window. Check both rows and their sources before each cycle.

## Operating model

- The ERP creates the invoice and its XML with the required tax data, document type and VAT nature codes.
- The XML is submitted to SdI through the channel you chose (directly or through an intermediary).
- SdI runs its checks and returns an outcome: rejection, or delivery-related responses.
- Routing to the customer depends on the recipient code or certified email address in the customer master.
- Conservation runs as its own process, with its own owner and evidence. 

Track creation, submission, rejection, delivery and conservation as separate statuses. A technical retry must not create a second accounting invoice.

## ERP set-up checklist

- Tax identifiers, recipient codes and certified email addresses held as controlled customer master data.
- Document types and VAT nature codes mapped and approved by the tax owner, including exempt and reverse-charge cases.
- Separate handling for domestic, foreign, public-sector and retail scenarios rather than one "Italian invoice" template.
- Submitted XML and SdI responses stored with the accounting document.
- Supplier invoices received through SdI imported once, including any invoice entered manually in the authority's portal.
- A box mapping for LIPE and the annual return; see [map tax codes to VAT return boxes](https://erplocalization.com/guides/map-tax-codes-vat-return-boxes/).

## Worked example: a rejected invoice and a credit note

The standard rate of 22% is from the [Italy page](https://erplocalization.com/italy/#vat) (source: the EU's Your Europe VAT rates page). Amounts are illustrative round numbers.

A company issues an invoice for 1,000 net. SdI rejects the first submission because the customer's tax identifier is wrong. The finance team corrects the customer master and resubmits the same document, as the tax owner's procedure prescribes; the ledger is not touched. The resubmission is accepted.

*Example entries: accepted invoice and a later credit note (EUR, illustrative)*

| Step | Account | Debit | Credit | Note |
|---|---|---:|---:|---|
| Invoice accepted by SdI | Trade receivables | 1,220.00 |  |  |
|  | Sales revenue |  | 1,000.00 |  |
|  | Output VAT |  | 220.00 | 22% |
| Credit note for 200 net, also through SdI | Sales returns | 200.00 |  |  |
|  | Output VAT | 44.00 |  |  |
|  | Trade receivables |  | 244.00 |  |

After both documents, output VAT is 176, which is what the quarter's LIPE should include for these two documents. Reconcile the SdI population (one invoice, one credit note) to the ledger before the LIPE is filed. The [e-invoice reconciliation guide](https://erplocalization.com/guides/reconcile-e-invoices-erp-tax-return/) shows the full method.

## Exceptions to plan for

- Invoices that SdI could not deliver to the customer's channel.
- Purchases that need special document handling, such as reverse-charge integration documents.
- Cross-border sales and purchases, which follow their own reporting route.
- Retail sales, which have their own receipt rules; see [retail and POS fiscalization](https://erplocalization.com/guides/retail-pos-fiscalization-erp/).
- Monthly instead of quarterly settlements; check the conditions on the Italy page and in the authority's current notice.

## Worksheet

Use the [Italy operating checklist](#template).

## Worksheet: Italy operating checklist

Copy this worksheet for each case. It records decisions and evidence; it does not determine the tax or legal treatment.
Show the worksheet

Use with the [Italy playbook](https://erplocalization.com/guides/italy-sdi-lipe-operating-playbook/).

### Scope

- Entity, VAT number and establishment:
- SdI channel (direct or intermediary) and owner:
- Conservation process and owner:
- Settlement frequency (quarterly or monthly) and source:

### Master data

- ☐ Customer tax IDs, recipient codes and certified email addresses
- ☐ Document types and VAT nature codes approved
- ☐ Supplier channel for inbound SdI invoices

### Statuses tracked separately

- ☐ Created ☐ Submitted ☐ Rejected ☐ Delivered or not deliverable ☐ Conserved

### Each quarter

| Check | Result | Owner |
|---|---|---|
| SdI population (invoices, credit notes) = ledger |  |  |
| Output and input VAT accounts = LIPE values |  |  |
| Rejected documents resolved without duplicate postings |  |  |
| LIPE filed by the date on the row; receipt stored |  |  |

### Each year

- ☐ Annual return filed in the window on the row
- ☐ Conservation complete for the year

**Sources checked:** 27 October 2026, through this site's Italy page (e-invoicing section checked 17 October 2026). Current exemptions, document codes and timing need the latest Revenue Agency provisions.

## Related guides and data

- [Reconcile invoices, e-invoice submissions, the ledger and the tax return](https://erplocalization.com/guides/reconcile-e-invoices-erp-tax-return/)
- [Map ERP tax codes to VAT return boxes and file the periodic return](https://erplocalization.com/guides/map-tax-codes-vat-return-boxes/)
- [Keep an invoice archive usable throughout daily operations](https://erplocalization.com/guides/e-invoice-archive-operations/)

**Data on this site:** [Italy country page](https://erplocalization.com/italy/) · [Italy × ERP e-invoicing support](https://erplocalization.com/italy/#e-invoicing) · [Italy e-invoicing status](https://erplocalization.com/e-invoicing/#status-italy) · [E-invoicing country × ERP matrix](https://erplocalization.com/e-invoicing/#matrix) · [VAT reporting requirements by country](https://erplocalization.com/vat-reporting/#requirements)

In [Country playbooks](https://erplocalization.com/guides/#countries): previous [Canada tax workflows: separate GST/HST, British Columbia PST and Quebec QST](https://erplocalization.com/guides/canada-gst-hst-pst-qst-workflows/) · next [Saudi Arabia playbook: Fatoora clearance, simplified-invoice reporting and VAT returns](https://erplocalization.com/guides/saudi-arabia-fatoora-operating-playbook/) · [Guides by task](https://erplocalization.com/guides/#by-task) · [All guides](https://erplocalization.com/guides/)

Vendor documentation is cited only as an example of the level of evidence to ask for; it is not a recommendation or a ranking. This guide is general information, not tax or legal advice. Checked 2026-10-27.

Related: [Glossary](https://erplocalization.com/glossary/) – abbreviations and terms used in these guides (SAF-T, Peppol, CTC, EN 16931, IFRS and more).

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