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What is self-billing?

Self-billing is a commercial arrangement between a customer and a supplier under which the customer prepares the invoice on behalf of the supplier and forwards a copy of that invoice to the supplier. The supplier remains responsible for payment of the output tax due. Self-billing is commonly used where the customer is in a better position to know what has been supplied under the contract and the tax point. A typical example is where the customer holds call off stock at its premises and raises a self-billed invoice when it removes stock from the warehouse.

A customer can issue a self-billed invoice if the following conditions are met:

1. •

   the supplier has agreed to accept self-billed invoices

2. •

   the customer and supplier have a self-billing agreement in place

3. •

   the customer using self-billing meets the conditions explained below