A self-invoice is a type of invoice that is prepared by the buyer and ensures that the purchase has been legal.
When there are two parties, self-billing requires prior agreement.
The term self-invoicing may catch your attention at first. After all, the prefix auto- is used to refer to actions that are carried out by oneself. Therefore, it may seem a little strange to think of self-invoicing as a one-person activity .
However, self-invoicing is a relatively common reality and must meet certain requirements that facilitate good documentation. In addition, it is an activity that is often not burkina faso email list done exclusively by one person, but may require the participation of others.
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The word self-invoicing is a colloquial term used to refer to situations in which the recipient of the operation issues an invoice .
While in a classic invoice it is the seller who issues it and it is proof of a sale, in the self-invoice it is the buyer who does so , that is, and it is proof that a purchase has been made legally.
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When is self-billing used?
The most common cases in which self-billing is used are:
An agreement between the supplier and the client for the latter to actually carry out the billing . This is perfectly possible and they could even have agreed that a third party would be the one to invoice. However, in any case, it is the supplier who is responsible for the obligation to invoice , which will be carried out in accordance with the agreed procedure.
The case of self-consumption . Here, the person who carries out an operation may also be its recipient. In a way, it is a little different, since the person who invoices is providing his own goods or services. There are not two parties. There have also been times when self-invoicing has been required by the regulations , even if there were two parties and they had not reached an agreement for the recipient to invoice . In the past , it was mandatory in order to be able to deduct VAT from certain actions , such as in intra-community operations or with reversal of the taxable person. Nowadays, this is no longer necessary.
Even if it is agreed that self-invoicing will be carried out, the supplier is still responsible for the invoice that is materially issued by the client.
What is the difference between an invoice and a self-invoice?
A self-invoice is a type of invoice . Therefore, in the case where there is a supplier and a client, the usual obligations must be fulfilled, with some differences :
In principle, in order for the client to invoice, there must be a prior agreement on which operations are to be self-invoiced . This method of invoicing must be agreed upon not only before the document is issued, but even before the operations are carried out.
Then, there must be a second agreement . In this case, it will be the one referring to the supplier acceptance protocol . Therefore, you must agree on a way in which the supplier can give his approval to what the client is going to send in the invoice.
In this case, it is the customer who sends the original to the supplier and keeps a copy of the invoice.
