Electronic invoicing: the essential glossary for understanding the operational cycle

01

The four phases of the cycle

The electronic invoicing cycle in Italy includes four phases: preparation, sending, receiving and archiving. Since 1 January 2019 the obligation covers all invoices between parties resident or established in Italy, for both B2B and B2C transactions, alongside the obligation toward Public Administration already in force since 31 March 2015. For transactions with foreign parties, issuance is optional, but data must be transmitted through the esterometro, with exceptions for customs declarations and purchases not exceeding 5,000 euros.

02

The technical rules behind the glossary

The technical rules for preparing, transmitting, receiving and archiving electronic invoices between private parties are set out in Measure No. 433608 of 24 November 2022 by the Revenue Agency. For invoices to Public Administration, the rules of Ministerial Decree No. 55/2013 and the guidance on fatturapa.gov.it remain valid. The invoice file must be in XML format compliant with the specifications attached to the measure, and every invoice must pass through the Exchange System (SdI): without this step the invoice is considered not issued.

03

The operational sequence step by step

Steps

1. Prepare the XML file using software or the free services from the Revenue Agency (web procedure, desktop software or FatturAE App).
2. Verify the minimum mandatory data required by Article 21 of Presidential Decree 633/1972 before sending.
3. Transmit the XML file to the customer through the SdI, using the portal, certified email (PEC) or an activated SFTP/Web Service channel.
4. Receive outcome notifications from the SdI and correct any rejections due to non-existent tax identifiers.
5. Archive the invoices in a compliant, secure and unalterable way over time.

04

A hypothetical compilation example

Hypothetical example: a company uses the free web procedure from the Revenue Agency to compile an ordinary invoice. On first use it verifies its own supplier data, automatically retrieved from the Tax Registry, and enters the customer's data. If the customer's VAT number does not appear in the Tax Registry, the procedure flags the error, and the invoice, if transmitted, would be rejected by the SdI.

05

Checks before sending

• Is the file in XML format compliant with the specifications of the measure of 24 November 2022?
• Are the minimum mandatory data required by Article 21 of Presidential Decree 633/1972 complete?
• Can the customer's VAT number or tax code be verified in the Tax Registry?
• Is the chosen sending channel (portal, PEC, SFTP/Web Service) correctly configured for the SdI?
• Does the invoice to Public Administration follow the rules of Ministerial Decree 55/2013 and fatturapa.gov.it?

06

Organizing the cycle with a software partner

To manage this cycle, a company can ask its software partner to track each phase distinctly: who prepares the XML file, who verifies the customer's data, who sends it via the chosen channel and who checks the SdI outcome notifications. Assigning specific roles to each step, and keeping a record of who validated the minimum mandatory data before sending, makes the process verifiable in case of rejection or correction. This is a suggested operational choice, not a legal requirement.

07

Quick clarifications on the glossary

• The glossary of the cycle distinguishes preparation, sending, receiving and archiving as separate but connected phases.
• Transactions with foreign parties remain optional for electronic invoicing but still require data through the esterometro.
• Every invoice must pass through the Exchange System, otherwise it is considered not issued.

08

A practical next step

A good next step is to map, for each invoice issued in the last quarter, which sending channel was used and whether any SdI rejections were recorded. This mapping helps identify where customer data verification or compliant archiving needs strengthening.