Invoice Public Administration (PA)
When issuing an invoice to an Italian public entity (Municipality, Health Authority, Ministry, School, University, etc.), you must follow specific rules different from B2B invoicing. This guide explains everything you need to know to correctly invoice the PA.
Before You Start
To issue invoices to Public Administration you need:
- An active and configured FatturaSmart account
- The Unique Code of the destination PA office (6 characters)
- CIG and/or CUP codes if required by the contract
- Understanding of split payment (scissione pagamenti)
What’s Different from B2B Invoicing?
| Aspect | Invoice to Private (B2B) | Invoice to PA |
|---|---|---|
| Recipient Code | 7 characters | 6 characters |
| VAT | You charge VAT to the customer | Often with split payment |
| Mandatory codes | None | CIG and/or CUP (when required) |
| VAT payment | Customer pays VAT to you | PA pays VAT directly to the State |
Part 1: Finding the Entity’s Unique Code
The Unique Code (also called “PA Recipient Code” or “IPA Code”) identifies the Public Administration office to which the invoice should be addressed. It consists of 6 alphanumeric characters.
How to Find the Unique Code
- Ask the public entity: The safest way is to request the Unique Code directly from the office that commissioned the work
- Check the order or contract: Often the Unique Code is indicated in the order document
- Search on IndicePA: Go to indicepa.gov.it and search for the entity by name
Warning: Each entity may have multiple Unique Codes for different offices. Make sure to use the correct one for the invoiced service.
Examples of Unique Codes
| Entity | Possible Code |
|---|---|
| Municipality | UF1A2B |
| Health Authority | 3C4D5E |
| University | 6F7G8H |
Part 2: Understanding CIG and CUP
When working for PA, you often need to include contract identification codes in the invoice.
CIG Code (Gara Identification Code)
The CIG (Codice Identificativo di Gara) identifies the procurement procedure (tender, direct award, etc.) and is used for financial flow traceability. It consists of 10 alphanumeric characters.
When is it mandatory?
- For public contracts above threshold
- For direct awards (often with simplified CIG called “SmartCIG”)
Where to find it?
- In the signed contract or order
- In the award determination
- Request it from the office that commissioned the work
CUP Code (Unique Project Code)
The CUP (Codice Unico di Progetto) identifies a public investment project. It consists of 15 alphanumeric characters.
When is it mandatory?
- For works, services, or supplies related to public investment projects
- For PNRR funding, European funds, or other monitored projects
Where to find it?
- In the contract or engagement document
- In the project documentation
Important: If the entity has communicated CIG and/or CUP codes, you must include them in the invoice. An invoice without the required codes will be rejected.
Part 3: Split Payment
Split payment (scissione dei pagamenti) is a mechanism where the PA pays VAT directly to the State instead of to you.
How It Works
When you issue an invoice for 1,000 euros + VAT (220 euros) to PA:
| Without Split Payment | With Split Payment |
|---|---|
| You receive €1,220 from customer | You receive only €1,000 from PA |
| You pay €220 VAT to the State | PA pays €220 VAT to the State |
When It Applies
Split payment applies to most public entities:
- Ministries and central administrations
- Regions, Provinces, Municipalities
- Public health authorities and hospitals
- State universities
- Public economic entities
- Companies controlled by PA
Exception: If you’re a flat-rate taxpayer or VAT exempt, split payment doesn’t apply because you don’t charge VAT.
Part 4: Creating a PA Invoice in FatturaSmart
Step 1: Start a New Invoice
- From the sidebar menu, click on Invoices
- Click the New Invoice button
Step 2: Enter the PA Customer
- Click on Customer at the top
- Search for an existing customer or click Create new customer
- Fill in the entity’s details:
| Field | What to Enter |
|---|---|
| Company Name | Entity name (e.g., “Municipality of Rome”) |
| VAT ID | The public entity’s VAT number |
| Fiscal Code | The entity’s fiscal code (often same as VAT ID) |
| Address | Legal address of the entity |
| Recipient Code | The 6-character Unique Code |
- Save the customer
Step 3: Enable PA Mode
After selecting the customer, in the customer data section:
- Look for the Public Administration checkbox
- Check the box to indicate this is a PA invoice
What happens? The system changes validation rules: the Recipient Code must be 6 characters instead of 7.
Step 4: Add CIG and CUP Codes (if required)
- In the invoice menu, click on Add (or the + button)
- Select Purchase Order Data
- Fill in the fields:
| Field | Description |
|---|---|
| CIG Code | The tender identification code (10 characters) |
| CUP Code | The unique project code (15 characters) |
| Contract/Convention code | Optional agreement code |
| Order number | Reference to the order or determination |
| Order date | Date of the order document |
- Click Confirm to save
Tip: If you have multiple lines referring to different orders, you can specify which lines the order data refers to.
Step 5: Set Split Payment
If the entity applies split payment:
- Go to Document Settings (the gear icon)
- In the VAT Collectability field, select Split payment
The system will automatically calculate:
- Taxable base: The amount for your services/products
- VAT: Calculated but not collected by you
- Total to pay: Only the taxable base (PA pays VAT to the State)
Step 6: Add Line Items
Fill in the invoice lines as usual:
| Field | Description |
|---|---|
| Description | The service or product provided |
| Quantity | Number of units |
| Unit price | Price per unit |
| VAT rate | Select the correct rate (e.g., 22%) |
Step 7: Verify the Summary
Check that:
- The Recipient Code is 6 characters
- CIG and/or CUP codes are entered (if required)
- VAT collectability is set correctly (split payment if necessary)
- The total amount matches what was agreed
Step 8: Send to SDI
- Click Send to SDI
- Confirm the submission
The invoice will be transmitted to the Exchange System (SDI), which will deliver it to the public entity.
Part 5: After Sending
Monitor the Status
After sending, the invoice can have these statuses:
| Status | Meaning |
|---|---|
| Sent | Being processed by SDI |
| Delivered | Received by the PA entity |
| Accepted | The entity has accepted the invoice |
| Rejected | The entity has rejected the invoice (see reason) |
| Deadline expiry | 15 days passed without response (equivalent to acceptance) |
If the Invoice Is Rejected
The most common reasons for rejection are:
- Missing or incorrect CIG/CUP → Verify the codes with the entity and reissue
- Incorrect Unique Code → Ask for the correct code from the competent office
- Non-conforming amount → Verify the contract or order
- Incorrect fiscal data → Check the entity’s VAT ID and company name
To correct, issue a new invoice with the correct data.
Practical Example
Situation: You provided consulting services to the Municipality of Rome for 2,000 euros + VAT, with CIG 1234567890.
- Create the invoice and select Municipality of Rome as customer
- Check the “Public Administration” checkbox
- Verify that the Recipient Code is 6 characters
- Add Purchase Order Data with CIG “1234567890”
- Set VAT collectability to “Split payment”
- Add line item: “Professional consulting - Project XYZ”, 2,000 euros, VAT 22%
- Verify the total:
- Taxable base: 2,000 euros
- VAT (22%): 440 euros (paid by PA to the State)
- Total to collect: 2,000 euros
- Send to SDI
Frequently Asked Questions
Is CIG always mandatory?
No, but almost always yes for PA contracts. There are some exceptions for very low amounts or specific types of purchases. If unsure, ask the entity before invoicing.
What happens if I enter the wrong Unique Code?
The invoice may not be delivered correctly or may be rejected. You’ll need to issue a new invoice with the correct code.
How do I know if I should apply split payment?
The general rule is: if the public entity is on the list of subjects required to use split payment, you must apply it. When in doubt, ask the entity or your accountant.
I’m a flat-rate taxpayer, should I use split payment?
No. If you’re in the flat-rate regime, your invoices are VAT exempt, so split payment doesn’t apply.
How long does the PA have to pay?
By law, PA must pay within 30 days of receiving the invoice (60 days for health entities). You can verify the receipt date from the “Delivered” status in FatturaSmart.
Can I invoice PA if I’m a private individual without VAT ID?
No. To invoice, you need a VAT ID and SDI registration. If you’re a private individual, you can only issue occasional services with withholding tax (but not through PA electronic invoicing).
Final Checklist
Before sending a PA invoice, verify:
- Customer set as “Public Administration”
- 6-character Recipient Code
- CIG entered (if required)
- CUP entered (if required)
- Split payment enabled (if applicable)
- Amounts correct as per contract/order
- Reference to purchase order (number and date)
Need Help?
PA invoicing can seem complex, but FatturaSmart makes it simple. If you have questions:
- WhatsApp: Click the icon at the bottom right
- Email: support@fatturasmart.com
Related guides:
- Set Purchase Order Data → - Detailed guide to CIG, CUP, and order references
- Create an Invoice as a Flat-Rate Taxpayer →
- Configure Your Company →
