Self-billing

[svanteschubert]

Background

Self-billing by the buyer

French Use Case n°19b: Self-billing

The invoice is issued by the buyer's platform.

The specific features of the data and associated management rules are :

• Invoice type (BT-3) to "389 - Self-billed".
• If the invoice is rejected, the credit note must mention :
  • Invoice type (BT-3) to "261 - Self-billed credit".
  • Reference to previous invoice (BT-25)

In order to handle other self-billing invoices, the creation of new invoice types has been requested from the standard.

In the case of a self-billed invoice that has been the subject of an assignment of receivables (factoring), the invoice type (BT- 3) to be entered is "Code to be determined - Self-billed factoring invoice". (Awaiting standard codes)

The factor must then be entered in block BG-10 (Beneficiary) with the role code "DL" in tag EXT-FR- FE-26 (Beneficiary role code).

For a self-billed down payment invoice, the invoice type (BT-3) to be entered is "Code to be determined - Self-billed down payment invoice". (Awaiting standard codes)

For a self-billed rectifying invoice, the invoice type (BT-3) to be entered is "Code to be determined - Self-billed rectifying invoice". (Awaiting standard codes)

For a self-billed, factored corrective invoice, the invoice type (BT-3) to be entered is "Code to be determined -" Self-billed factoring rectifying invoice". (Awaiting standard codes)

For a self-billed credit memo, the invoice type (BT-3) to be entered is "Code to be determined - Self-billed credit memo". (Awaiting standard codes)

Figure 22: Self-billing

The specific features of the associated life cycle or process are :

• A billing mandate must be drawn up between the two parties
• The process is "reversed": the invoice is sent by the customer to the supplier. The blocks remain the same: SELLER = supplier/service provider; BUYER = customer = invoicing party.
• Transmission of stream 1 by the buyer's platform.
• Transmission of e-reporting of payment data via the supplier's platform, where applicable (service provision).

The steps for case 19b are :

Step	Stage name	Responsible player	Description
1	Billing mandate	Supplier Buyer / Agent	The supplier and the purchaser/contractor enter into an invoicing agreement so that the purchaser/contractor can submit invoices on behalf of the supplier.
2	Invoice creation	Buyer / representative	The buyer/contractor sends a flow 2 to the supplier's PDP and in parallel with flow 1 to the PPF for transmission of billing data.
3	Receipt of invoice	Supplier	The supplier's PDP 1 receives the invoice. 2 possibilities: 1. Invoice validation / Lifecycle transmission to buyer's PDP 2 2. Rejection of invoice / transmission of life cycle to buyer's PDP 2
4	Validation	Supplier	Supplier's PDP1 transmits an invoice validation lifecycle to buyer's PDP2
4b	Refusal	Supplier	The supplier's PDP 1 transmits a rejection life cycle to the buyer's PDP 2 and to the PPF. If the invoice is rejected, the associated flow 1.
5b	Receipt of refusal	Buyer / Agent	Buyer/contractor receives invoice rejection
6b	Issuing a credit note	Buyer / Agent	Transmission of a credit note from buyer's PDP 2 to supplier's PDP 1 and in parallel with the PPF (flow 1 associated with the credit note) for transmission of billing data.
7b	Receipt of credit note	Supplier	Supplier's PDP 1 receives the credit note
5	Invoice payment and update optional/recommended status	Buyer / Agent	The buyer's PDP 2 makes the payment, and may transmit an optional "Payment transmitted" status life cycle to the supplier's PDP 1.
6	Receipt of articles of association	Supplier
7	Collection	Supplier	Supplier collects payment. The supplier's PDP 1 transmits the status "cashed" to the PPF and to the buyer's PDP 2 if the invoice is for the provision of services.
8	Go to à update at status "cashed	Supplier
9	Reception from status "cashed	Buyer / Agent

NOTE: The text/pictures of this use case no. 19b were taken from the French government site! The text was extracted from V2.3 - deepl English DOCX and any pictures were taken from V2.2 - original English PDF)

[edmundgray]

VAT Directive - Article 224 and Article 226 10a about self-billing; Section 5.2.13 in EN describes Self Billing In a self-billing process, the Buyer sends the invoice to the Seller. Both Buyer and Seller keep their responsibilities, so the invoice is still issued on behalf of the Seller. According to directive 2006/112/EC, the invoice shall be labelled as being a self-billed invoice and the requirements mentioned in article 224 of this directive shall be met.