Self-billing

Self-billing is an arrangement in which the customer, not the supplier, raises the invoice for goods or services received — then pays against it. Marketplaces use it to pay sellers, agencies to pay contractors, and platforms to settle with partners, because the customer already holds the numbers: what was sold, what was delivered, what commission applies.

How it works

• Supplier and customer agree in writing that the customer will self-bill.
• The customer issues a self-billed invoice (or payout statement) for each supply, in its own numbering series per supplier.
• The supplier accepts it and does not issue its own invoice for the same supply.
• Payment follows the self-billed document.

In the UK and the US

• UK: HMRC allows self-billing for VAT under a written self-billing agreement, usually renewed every 12 months. Self-billed invoices carry the supplier’s VAT details and the statement “The VAT shown is your output tax due to HMRC”.
• US: there is no special VAT regime; a self-billed statement is simply the payer’s record of what it owes each payee, and supports its 1099 reporting.

Why it matters

When one incoming payment belongs to several parties, each needs their own document for their own amount. Self-billing produces those documents from the data the platform already has, instead of waiting for every seller or contractor to invoice.

How Fynex does it

Fynex issues per-party statements — seller payout statements, platform commission invoices and partner referral statements — each with its own VAT treatment, and traces each back to the payment that funded it. See rebilling contractors.