Mesut Ozil broke the deadlock in the second half but the Germans’ lead lasted few minutes as Jerome Boateng’s handball in the box gave Italy a penalty which was well converted by Leonardo Bonucci.
The quality of their penalties were, however, not particularly good.
Thomas Mueller, Mesut Oezil and Bastian Schweinsteiger all missed for Germany while Simone Zaza, Graziano Pelle, Leonardo Bonucci and Matteo Darmian missed for Italy.
Germany goalkeeper, Manuel Neuer, who was voted Man of the Match, said; “I have never experienced a shoot-out like this. I think most of the Italians just aimed into the middle.
“The 1-1 score we conceded during regular time was a bit unlucky. But I believe we were the better side and are deservedly through to the semi-finals.”
The total of 18 penalties ties the record for most penalties taken in a Euro penalty shootout.
The record was set in 1980 when Italy also lost 8-9 to Czechoslovakia in the 3rd place play-off.