Self-billing invoices

Our support department is occasionally asked why an invoice stating "invoice issued by the customer" cannot be processed as a purchase invoice. This entry concerns a self-billing invoice. The statement "invoice issued by the customer" is in accordance with the legal requirements for this type of invoice. Self-billing invoices are invoices that are drawn up by the buyer (customer) instead of the supplier. The customer therefore draws up the invoice, which the supplier enters *** as a sales invoice*** in the administration. This usually happens in long-term cooperation between parties where trust is essential. A self-billing invoice is therefore a sales invoice, on which 'purchase' or 'purchase invoice' is sometimes stated. After all, the buyer reasons towards the supplier: “you buy from me”. The result is sometimes that the self-billing invoice ends up in the flow of purchase invoices, where it is - rightly - filtered out. A self-billing invoice can and should be processed as a sales invoice by the supplying party. Please note that not every software package can read sales invoices.

More about self-billing

Why is the construction that the buyer draws up the invoice for the supplier? The answer is: efficiency. This way of working saves time for the supplier, as the buyer takes on the administrative burden. A reason to choose this construction is if the buyer has more accurate information about the transaction(s). If the customer draws up the invoice, the chance of errors is reduced. A practical example: With municipalities, you can think of a scrap dealer who has collected scrap from a municipality and weighs what falls into which category. Such a scrap dealer can send a self-billing invoice to the municipality for the collected scrap - for the removal of which the scrap dealer is paid. There are important requirements and responsibilities associated with self-billing. The supplier remains liable for the accuracy of the invoice and for the correct payment of VAT to the tax authorities. In the Netherlands, the invoice must meet all legal requirements) and explicitly state that this was issued by the customer. If the supplier does not agree with an invoice drawn up by the buyer, he must report this in a timely manner and issue a correct invoice himself. It is important that these rules are properly observed by both parties.

Self-billing invoices and Peppol

There is (yet) no separate document type on Peppol for self-billing invoices, such as for 'orders' or 'credit invoices'. However, the intention has been expressed to support the self-billing process at Peppol. More information about self-billing and the specific Dutch rules can be found on the website of the Tax Authorities.