Self-billing-AP

Self-billing is an agreement between a vendor and a customer. The customer prepares the vendor’s invoice and sends a copy to the vendor with the payment. Both customer and vendor must be VAT-registered.

Bahrain specifics

In certain cases, the issue of a tax invoice by a taxable supplier is not practical. The taxable customer may issue a tax invoice on behalf of their taxable supplier subject to these conditions:

  • An agreement in writing between both parties allowing the issue of tax invoices by the customer
  • The supplier undertakes not to issue any tax invoice when a transaction is subject to self-invoicing
  • A mechanism exists, whereby the supplier can approve every tax invoice that is issued by the customer on their behalf
  • The tax invoice clearly states that the invoice is issued by the customer on behalf of the supplier
  • The customer retains a copy of every tax invoice that is issued on behalf of the supplier
  • The invoice that is issued by the customer on behalf of the supplier meets all conditions to qualify as a tax invoice

Where self-invoicing is used, the taxable supplier is responsible for the tax invoice that is issued by the taxable customer.

How Infor meets this requirement

For setup information, see the Financials Setup and Administration Guide.

For information about ERS invoice creation, see the Payables User Guide.