Italy E-Invoicing for Foreign Companies: SDI Registration & Compliance

When Must Foreign Companies Use Italy's SDI?

Foreign companies interact with Italy's SDI system in several scenarios:

Foreign companies interact with Italy's SDI system in several scenarios:

How Do Foreign Companies Register for SDI?

Obtain an Italian VAT number — either through direct registration or via a fiscal representative (rappresentante fiscale) Access the Agenzia delle Entrate portal at ivaservizi. agenziaentrate.

1. Obtain an Italian VAT number — either through direct registration or via a fiscal representative (rappresentante fiscale)
2. Access the Agenzia delle Entrate portal at ivaservizi.agenziaentrate.gov.it
3. Register a Codice Destinatario — foreign companies typically use their invoicing software provider's code
4. Obtain a qualified digital signature — EU eIDAS-compliant certificates from Italian providers work; some accept certificates from other EU member states
5. Configure FatturaPA generation with the foreign company's details in the CedentePrestatore section

What Is a Fiscal Representative (Rappresentante Fiscale)?

A fiscal representative is an Italian-resident entity appointed by a foreign company to handle all Italian tax obligations, including SDI e-invoicing.

A fiscal representative is an Italian-resident entity appointed by a foreign company to handle all Italian tax obligations, including SDI e-invoicing. The representative:

• Issues and receives e-invoices on behalf of the foreign company
• Files periodic VAT returns (liquidazioni periodiche)
• Is jointly and severally liable for the foreign company's Italian tax obligations
• Must be approved by the Agenzia delle Entrate

What Special Rules Apply to Foreign Companies on SDI?

Country code in XML: The CedentePrestatore section must use the correct ISO country code (not IT) for the foreign company's registered address VAT number format: Uses the Italian VAT number assigned to the foreign entity (starting with IT)

• Country code in XML: The CedentePrestatore section must use the correct ISO country code (not IT) for the foreign company's registered address
• VAT number format: Uses the Italian VAT number assigned to the foreign entity (starting with IT)
• Reverse charge handling: For certain transaction types, the Italian buyer handles VAT via reverse charge (autofattura TD17/TD18/TD19)

What Are the Penalties for Foreign Companies?

Foreign companies with Italian VAT registration face the same penalties as domestic businesses:

Foreign companies with Italian VAT registration face the same penalties as domestic businesses:

• Non-issuance: 90–180% of related VAT (minimum €500)
• Late or incorrect: €250–€2,000 per invoice
• Ravvedimento operoso: Available for voluntary correction with same reduction schedule

Invoicemonk simplifies SDI compliance for foreign companies with multi-language support, automated FatturaPA generation with correct country codes, and cross-border invoicing features including multi-currency support and real-time exchange rates.