Croatia were hit with the sanction on Wednesday following alleged incidents of racism during the 5-1 victory against Norway in Zagreb on March 28.
Fans also set off fireworks and threw missiles during the encounter at the Stadion Maksimir.
The fixture against Italy will take place in a different venue at the Stadion Poljud in Split, a move described as a "responsible decision" by HNS president Davor Suker.
However, the HNS believes that UEFA's punishment is excessive and has subsequently challenged the decision.
"Our chances [of winning the appeal] are slim," Suker said. "But we have a respectable world reputation.
"We were all shocked with the UEFA decision and we feel bad about it, but we have to work together to rectify the mistakes."
‘The pure simplicity of the way Slot has managed the squad is probably the biggest thing I could say about him. It’s not broken, so let’s get on with it’: Liverpool legend full of admiration for Jurgen Klopp's successor at Anfield
‘I trained at Spurs and thought they’d give me a chance. But I received a letter thanking me but saying they didn’t think I was good enough – I was gutted’: How Tottenham missed out on signing Wales legend John Toshack
