Key takeaways
- Self-billing means the buyer prepares the invoice for a purchase, in the supplier's name, and sends it to the supplier.
- It needs a written agreement between the parties, and tax rules in many countries require one.
- It is common for contractors, farm produce and supply arrangements where the buyer measures the quantity.
- Check your country's rules on who may issue the invoice and what it must say.
Free PDF and Excel: Self-billing agreement outline and compliance check. Get it below
What self-billing is
A self-billing invoice is an invoice prepared by the customer on behalf of the supplier, based on the goods or services received, and issued in the supplier's name.
Normally the supplier invoices. In self-billing the buyer already has the data, such as the weight delivered at a weighbridge or the hours worked, so it calculates the invoice itself. It is also called evaluated receipt settlement, or ERS, in some supply chains.
A food processor weighs every delivery of produce at its gate. Rather than wait for 200 farmers to send invoices, it prepares a weekly self-billing invoice for each, using the weights and an agreed price list, and pays on the due date.
The farmers sign a self-billing agreement once. They may dispute any invoice within a stated number of days.
What the agreement should cover
| Field | What goes in it | Why it matters |
|---|---|---|
| Parties and tax details | Names, addresses and tax registrations. | Needed on the invoice. |
| Scope | Which goods or services. | Avoids use for other supplies. |
| Pricing | How prices are set. | Basis for calculation. |
| Invoice delivery | How the supplier receives it. | Proof of issue. |
| Dispute window | Days to challenge an invoice. | Closes errors. |
| Numbering | Series used by the buyer for the supplier. | Avoids duplicates. |
| Term and withdrawal | How either side ends it. | Clear exit. |
Free PDF and Excel
Self-billing agreement outline and compliance check
An outline of the clauses a self-billing agreement needs, with a compliance check list.
- Agreement outline
- Compliance check list
- Dispute log
- Excel invoice register
Tax points
- UK VAT: HMRC allows self-billing with an agreement and specific conditions. See the GOV.UK guidance.
- India GST: the law has provisions on invoices issued by the recipient in certain cases, such as reverse charge supplies from unregistered persons. Check with a CA.
- Many other countries allow it with a written agreement. Confirm yours.
See the tax pages for general rules: UK VAT invoice and GST tax invoice.
- A signed agreement is in place.
- Tax rules allow it for these supplies.
- Numbering is separate and sequential.
- Suppliers can see and dispute invoices.
- Prices and quantities are reconciled.
Last checked: 19 October 2026. General summary. Self-billing rules are country specific. Confirm against current tax guidance.
Frequently asked questions
What is a self-billing invoice?
An invoice prepared by the buyer on behalf of the supplier and issued in the supplier's name.
Is self-billing legal?
In many countries yes, with a written agreement and compliance with tax rules. Check your own.
Who is responsible for the tax on a self-billed invoice?
The rules differ. In general the supplier remains the taxable person, but the buyer must follow the invoice rules.
What is evaluated receipt settlement?
A self-billing system where the buyer pays on the basis of its own receipt records, without waiting for an invoice.
Do I need the supplier's consent?
Yes, normally in the form of a self-billing agreement.