What Is Self-Billing?
Self-billing is a process where the buyer creates and sends the invoice on behalf of the seller. This is typically used when the buyer has better control or visibility over the transaction details—common in industries like agriculture, energy, or logistics.
Step-by-Step Process
1. Agreement Between Parties
- A formal agreement must be established between the buyer and seller.
- This agreement defines:
- The scope of self-billing
- Duration and conditions
- Legal and tax responsibilities
- It must comply with local VAT laws and EN 16931 standards.
2. Delivery of Goods or Services
- The seller delivers goods or services to the buyer.
- The buyer confirms receipt and validates the delivery details.
3. Invoice Generation by Buyer
- The buyer uses the Peppol BIS Self-Billing format to create the invoice.
- The invoice includes:
- Seller and buyer identifiers (using ISO 6523 ICD codes)
- Delivery details
- Pricing, taxes, and payment terms
- Invoice type code (e.g., self-billed invoice or credit note)
4. Transmission via Peppol Network
- The invoice is sent electronically using the Peppol eDelivery infrastructure.
- The format must be UBL-compliant and validated against Peppol Schematron rules.
5. Seller Review and Acceptance
- The seller receives the invoice and verifies its accuracy.
- If discrepancies exist, the seller can:
- Request corrections
- Issue a self-billed credit note
- If accepted, the invoice becomes legally binding.
6. Payment Execution
- The buyer initiates payment based on the agreed terms.
- Payment details are included in the invoice using standardized codes (e.g., UNCL4461 for payment means).
Key Technical Elements
| Element | Description |
|---|---|
| UBL Syntax | Uses UBL 2.1 for invoice and credit note structures |
| EN 16931 Compliance | Ensures semantic consistency across EU invoicing standards |
| Code Lists | Includes ISO 3166 (country), ISO 4217 (currency), UNCL codes for tax, etc. |
| Schematron Validation | Ensures conformance to Peppol and EU rules |
✅ Benefits of Self-Billing via Peppol
- Efficiency: Reduces manual errors and speeds up invoicing.
- Transparency: Buyer has full control over invoice content.
- Interoperability: Works across borders and systems using standardized formats.
- Auditability: Ensures traceability and compliance with tax regulations.
Source Peppol
