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E-Invoicing Glossary

A practical guide to Italian electronic invoicing terms and VAT codes

1. Codice Fiscale

The Codice Fiscale is Italy's tax identification code. Every individual and company in Italy has one, and it's required on every invoice sent to an Italian recipient.

  • Individuals: 16 alphanumeric characters derived from name, birth date, and birthplace (e.g., RSSMRA80A01H501U).
  • Companies: 11 numeric digits — these are the same digits as the Partita IVA (VAT number) without the country prefix.

When to use: Always fill in the Codice Fiscale when invoicing an Italian customer. For individuals, ask for their 16-char code. For companies, you can use their 11-digit VAT number.

2. Partita IVA (VAT Number)

The Partita IVA is the VAT registration number assigned to businesses and self-employed professionals. In the EU, it always starts with a two-letter country prefix.

  • Format: Country prefix + digits (e.g., IT12345678901 for Italy, DE123456789 for Germany).
  • Before invoicing EU clients: Always verify their VAT number on the VIES portal. A valid VAT number lets you apply the reverse charge mechanism (Natura N2.1) instead of charging VAT.
  • Non-EU customers: Leave the Partita IVA field blank. If they have a local tax ID, you can enter it in the Codice Fiscale field instead.

Tip: If a customer's VAT number fails VIES validation, do not apply reverse charge — charge VAT as if they were a domestic customer, and sort it out afterward.

3. Codice Destinatario (SDI Code)

The Codice Destinatario is the 7-character alphanumeric code that tells the SDI (Sistema di Interscambio) where to deliver your e-invoice. Think of it as the recipient's digital mailbox address.

  • Private businesses (B2B): Ask your customer for their 7-character code. They can find it in their Cassetto Fiscale on the Agenzia delle Entrate website, or their accountant will know it.
  • Sending via PEC instead: Use 0000000 (seven zeros) as the Codice Destinatario and fill in the customer's PEC address.
  • Public Administration (PA): PA entities use a 6-character Codice Univoco (not 7). Look it up on the IPA directory.
  • Foreign customers: Use XXXXXXX (seven X's) since SDI delivery is not applicable.

When to use: Always ask your Italian customer for this code before issuing the first invoice. Getting it wrong means the invoice won't be delivered.

4. PEC (Certified Email)

PEC (Posta Elettronica Certificata) is Italy's legally recognized certified email system. It provides proof of sending and delivery with the same legal standing as registered mail.

  • PEC is an alternative to the Codice Destinatario for e-invoice delivery. If your customer doesn't have a Codice Destinatario (or doesn't know it), they can give you their PEC address instead.
  • Priority rule: If a customer provides both a PEC and a Codice Destinatario, the SDI will always use the Codice Destinatario. The PEC is only used as a fallback.
  • Most Italian businesses have a PEC registered with the Camera di Commercio (Chamber of Commerce). You can often find it on their official business registration.

Tip: PEC addresses look like regular email but typically end in @pec.it, @legalmail.it, or similar certified providers.

5. Invoice Number Suffix

The suffix is the separator between the invoice number and the year in your invoice numbering sequence (e.g., 1/2026, 001-2026, 2026/001).

  • Most common format: / (forward slash), e.g., 1/2026, 42/2026.
  • Other valid formats: - (dash) or no separator at all.
  • Rule: Invoice numbers must be sequential within each calendar year. You can restart from 1 at the beginning of each year.

When to use: Pick a format and stick with it for the entire year. The most popular choice in Italy is the / separator. Changing format mid-year can confuse your accountant and the Agenzia delle Entrate.

6. Tipo Documento (Document Type)

The Tipo Documento tells the SDI what kind of document you're sending. Here are the ones you'll actually use:

  • TD01 — Fattura (Standard Invoice): Use this for most sales of goods and services. If you're a company selling something, this is your default.
  • TD04 — Nota di Credito (Credit Note): Use this to correct or cancel a previously issued invoice. For example, if you overcharged a customer or need to issue a refund.
  • TD06 — Parcella: Specifically for regulated professionals (lawyers, architects, consultants, accountants). If you have a professional order registration, use this instead of TD01.
  • TD24 — Fattura Differita (Deferred Invoice): Use when goods were shipped with a DDT (Documento di Trasporto) and you're invoicing later. The invoice can cover multiple shipments within the same month.
  • TD25 — Fattura Differita (Triangular): For deferred invoices involving triangular transactions between three parties. Less common but needed in specific supply chain setups.

Quick decision: Selling services or goods as a company? Use TD01. Are you a freelance professional registered with an order? Use TD06. Issuing a correction? Use TD04.

7. Esigibilità IVA (VAT Collectability)

This field determines when the VAT on your invoice becomes due to the tax authorities. It affects your VAT reporting timing.

  • Immediata (I) — Immediate: VAT is due when the invoice is issued. This is the default for most businesses. If you're unsure, use this.
  • Differita (D) — Deferred: VAT is due when payment is actually received. This applies to deferred invoices (TD24) backed by a DDT. The VAT becomes payable no later than the 15th of the month following delivery.
  • Split Payment (S): The customer pays the VAT directly to the state, not to you. You receive only the net amount. This is primarily used when invoicing public administrations (PA) and certain listed companies.

When to use: If your customer is a public administration, they will tell you to use Split Payment (S). If you're issuing a deferred invoice with a DDT, use Differita (D). In all other cases, use Immediata (I).

8. Beneficiario (Payment Beneficiary)

The Beneficiario field identifies who should receive the payment. In most cases, the payment beneficiary is the same entity issuing the invoice.

  • Leave blank in most cases. If you are both the invoicing party and the payment recipient, you do not need to fill this in.
  • When to fill it: Only when the payment should go to a different entity than the invoice issuer. For example, if a parent company issues the invoice but payment should go to a subsidiary, or if a freelancer invoices through a cooperative.

Tip: If you're a small business or freelancer invoicing directly, you will almost never need this field.

9. Istituto Finanziario (Financial Institution)

The name of your bank, included in the invoice for payment reference purposes. This makes it easier for your customer to set up a bank transfer.

  • Examples: "Intesa Sanpaolo", "UniCredit", "Banca Mediolanum", "Fineco Bank".
  • This field is optional but helpful when your customer is paying by bonifico bancario (bank transfer). It gives them an extra reference point alongside your IBAN.

When to use: Fill it in if you typically receive payment by bank transfer. It is not required for invoices paid by other methods (credit card, cash, etc.).

10. ABI Code

The ABI (Associazione Bancaria Italiana) code is a 5-digit number that identifies your bank in the Italian banking system.

  • Where to find it: It's embedded in your IBAN at positions 6–10. For example, in IBAN IT60X0306905024..., the ABI is 03069.
  • Used in the FatturaPA XML under the payment details section (DatiPagamento).
  • Optional on most invoices, but some customers or PA systems may request it.

Tip: If you already provide your full IBAN on the invoice, the ABI code is technically redundant. But filling it in keeps your invoice data complete for automated processing.

11. CAB Code

The CAB (Codice di Avviamento Bancario) is a 5-digit code identifying your specific bank branch.

  • Where to find it: Positions 11–15 of your IBAN. For example, in IBAN IT60X0306905024..., the CAB is 05024.
  • Together with the ABI code, the CAB uniquely identifies your bank branch within Italy.
  • Like ABI, it's optional but used in the FatturaPA XML for structured payment information.

When to use: Include ABI and CAB together when your customer's system requires structured bank details, or when invoicing public administrations that prefer complete payment data.

12. BIC/SWIFT Code

The BIC (Bank Identifier Code), also known as SWIFT code, is an international identifier for your bank. It's needed for cross-border payments.

  • Format: 8 or 11 characters. The 8-character version identifies the bank, while 11 characters specify a particular branch.
  • Example: BCITITMM (Intesa Sanpaolo), UNCRITMM (UniCredit).
  • Where to find it: On your bank statement, in your banking app, or by searching your bank name on the SWIFT directory.

When to use: Always include the BIC when invoicing foreign customers who will pay by international bank transfer. For domestic Italian transfers (SEPA), the IBAN alone is usually sufficient.

13. DIBA (Dichiarazione d'Intento)

A Dichiarazione d'Intento (Declaration of Intent) is a document your customer provides that allows them to purchase goods or services without paying VAT. It's used by frequent exporters (esportatori abituali) who have a special status with the Agenzia delle Entrate.

  • How it works: Your customer sends you the declaration number and the telematic receipt from the Agenzia delle Entrate. You reference this on your invoice.
  • What you enter: The protocol number and date of the declaration. This goes into the invoice's "Causale" or specific DIBA fields.
  • Without it: If a customer claims to be a frequent exporter but cannot provide a valid declaration, you must charge VAT normally. No exceptions.

When to use: Only when your customer gives you the declaration. You never generate this yourself — it's always the buyer's responsibility.

14. CIG (Codice Identificativo Gara)

The CIG (Tender Identification Code) is a unique code assigned to every public procurement tender in Italy. It's managed by ANAC (Autorità Nazionale Anticorruzione).

  • Required on ALL invoices to public administrations. Without it, the PA literally cannot process your invoice for payment.
  • Who provides it: Your customer (the PA) gives you the CIG when they award the contract or issue the purchase order. It should be in the contract documents.
  • Format: 10-character alphanumeric code (e.g., Z2A1B3C4D5).
  • For very small purchases (under €5,000), a Smart CIG may be used, which is a simplified version.

Tip: Always request the CIG before starting work for a PA. No CIG means no payment — and it's much harder to add after the fact.

15. CUP (Codice Unico Progetto)

The CUP (Unique Project Code) tracks public investment projects across Italy. It's assigned to specific funded projects and allows the government to monitor spending.

  • Required when: Your invoice relates to a publicly funded project (e.g., infrastructure, PNRR-funded initiatives, research grants).
  • Not always needed: Unlike CIG, not every PA invoice requires a CUP. It depends on whether the contract is tied to a specific funded project.
  • Who provides it: The PA provides the CUP along with the CIG. You'll typically find both in the contract or purchase order documentation.
  • Format: 15-character alphanumeric code (e.g., J31B21000000001).

When to use: If the PA mentions a project code or CUP in the contract, always include it. When in doubt, ask. Omitting a required CUP can delay payment.

16. Purchase Order Number

The Purchase Order Number (Numero Ordine d'Acquisto) is your customer's internal reference for the order. Including it on the invoice helps them match it to their procurement records.

  • Important for large companies and PAs: Organizations with structured procurement workflows rely on PO numbers to approve invoices. Without it, your invoice may sit in a queue waiting for manual matching.
  • Optional for small clients: Freelancers and small businesses usually don't issue formal purchase orders. You can leave this blank.
  • Where to find it: Your customer includes it in their order confirmation, purchase order document, or contract.

Tip: When working with large companies or PA, always ask for the PO number upfront. A missing PO number is one of the most common reasons for payment delays.

17. Codice Articolo (Item Code)

The Codice Articolo is a product or service identifier for individual line items on your invoice. It maps to the CodiceArticolo field in the FatturaPA XML.

  • What to use: Your internal SKU, EAN barcode, catalog number, or any other product identifier your customer recognizes.
  • Optional: This field is not required for a valid e-invoice. However, it's useful when your customer needs to match line items to their inventory or procurement system.
  • For services: You can use an internal service code or leave it blank. Services don't typically require item codes unless your customer specifically asks.

When to use: Include item codes if you sell physical products, have a product catalog, or your customer requests them for their procurement workflow.

18. VAT Rates & Natura Codes

This is the most important section for getting your invoices right. Italy has four VAT rates, and when VAT doesn't apply, you must specify a Natura code explaining why.

Standard VAT Rates

  • 22% — Standard rate. Applies to most goods and services. This is your default.
  • 10% — Reduced rate. Hotels, restaurants, some food products, building renovations, water supply, and passenger transport.
  • 5% — Reduced rate. Certain herbs, aromatic plants, some social and healthcare services.
  • 4% — Super-reduced rate. Essential foodstuffs (bread, milk, olive oil, fresh fruit and vegetables), first-home purchases, books, newspapers, and e-books.

Quick Decision Tree

Not sure which rate or Natura code to use? Find your situation below:

  • "I'm in regime forfettario" → Use Natura N2.2 (not subject to VAT — forfettario regime). Set VAT rate to 0%.
  • "Selling services to an EU business with a valid VAT number" → Use Natura N2.1 (reverse charge, intra-EU services). The customer accounts for VAT in their country.
  • "Selling to a non-EU customer" → Use Natura N3.1 (non-taxable export). No VAT charged.
  • "My customer sent me a dichiarazione d'intento" → Use Natura N3.5 (following declaration of intent). Reference the declaration number on the invoice.
  • "Invoicing a public administration with split payment" → Use the standard rate (22% or applicable reduced rate) with Esigibilità S (split payment). The PA pays the VAT directly to the state.
  • "Normal sale within Italy, regime ordinario" → Use the standard rate 22% (or the applicable reduced rate for your specific goods/services). No Natura code needed.

Natura Code Groups Explained

When your invoice line has 0% VAT, you must specify a Natura code to tell the SDI why no VAT is charged. Here is every group:

  • N1 — Excluded from VAT: Operations outside the scope of VAT entirely. Examples: stamp duties (bollo), government fees and taxes recharged to the customer.
  • N2.1 — Not subject, EU reverse charge: Intra-EU B2B services where the customer self-accounts for VAT under the reverse charge mechanism.
  • N2.2 — Not subject, other cases: The forfettario and minimi regimes fall here. Also applies to other situations where the operation is not subject to Italian VAT.
  • N3.1 — Non-taxable, exports outside EU: Direct exports of goods outside the European Union.
  • N3.2 — Non-taxable, intra-EU sales: Intra-community supply of goods to a VAT-registered buyer in another EU country.
  • N3.3 — Non-taxable, sales to San Marino: Specific to transactions with San Marino, which has its own rules.
  • N3.4 — Non-taxable, export-like transactions: Operations treated like exports (e.g., sales to duty-free zones, ship and aircraft provisioning).
  • N3.5 — Non-taxable, declaration of intent: Sales to frequent exporters who provided a valid dichiarazione d'intento. Reference the declaration on the invoice.
  • N3.6 — Non-taxable, other: Catch-all for non-taxable operations not covered by N3.1 through N3.5.
  • N4 — Exempt: Operations that are VAT-exempt by law. Examples: medical and healthcare services, insurance services, certain financial services, educational services.
  • N5 — Margin scheme: For sales of used goods, works of art, antiques, and collector's items under the margin scheme (regime del margine). VAT is calculated only on the profit margin, not the full price.
  • N6.1 through N6.9 — Reverse charge (domestic): Various domestic reverse charge scenarios where the buyer self-accounts for VAT:
    • N6.1 — Subcontracting in construction
    • N6.2 — Sale of buildings
    • N6.3 — Sale of mobile phones
    • N6.4 — Sale of electronic products
    • N6.5 — Construction and related services
    • N6.6 — Energy sector
    • N6.7 — Scrap and recycling
    • N6.8 — Cleaning services in buildings
    • N6.9 — Other domestic reverse charge
  • N7 — VAT paid in another EU country: When VAT is collected and remitted in a different EU member state (e.g., under the OSS — One Stop Shop scheme for e-commerce).

Key rule: If your line item has a VAT rate greater than 0%, do not set a Natura code. Natura codes are only for explaining why VAT is 0%. Setting both a rate and a Natura code will cause the SDI to reject your invoice.