Self-billing
Self-billing means the buyer creates the invoice on behalf of the supplier, so creators do not have to write an invoice themselves.
Definition
In self-billing, the two parties agree that the payer issues the invoice. The payer creates the document, often called a self-billing invoice or credit note, and sends a copy to the supplier. Many tax systems accept this if there is a prior agreement and the document contains all required invoice details.12
Why it helps creator payouts
- No chasing creators for missing or incorrect invoices
- Consistent invoice data that is ready to book
- Payouts are not blocked by paperwork
- Correct VAT treatment applied the same way for every creator
Requirements
Rules differ by country. Under EU VAT rules, typical requirements are a prior agreement (written in many countries), a procedure for the supplier to accept each invoice, sequential numbering, the correct VAT treatment and the mention "Self-billing" on the invoice.13 Check the local rules for your payees.
How Talentir helps
Talentir issues the invoices for both sides of each payout, so creators do not have to write their own. See accounting automation
Further reading
Related topics
What is a Merchant of Record?
A Merchant of Record (MoR) is the legal entity that is the counterparty to a transaction and generally carries the tax, invoicing and compliance obligations for it.
VAT reverse charge
Under the reverse charge, the business customer accounts for VAT on a cross-border B2B service instead of the supplier.
Merchant of Record vs. payment provider
A payment provider moves money on your behalf. A Merchant of Record also becomes the legal counterparty and takes on the obligations around the payment.
DAC7 (EU platform reporting)
DAC7 makes digital platforms report what their sellers earn to EU tax authorities, including platforms outside the EU with EU-resident sellers.
Sources
VAT reverse charge
Under the reverse charge, the business customer accounts for VAT on a cross-border B2B service instead of the supplier.
DAC7 (EU platform reporting)
DAC7 makes digital platforms report what their sellers earn to EU tax authorities, including platforms outside the EU with EU-resident sellers.