GST on Self-Billing
1. Explanation
123. Generally, a tax invoice is issued by a supplier. However, in cases where the value at the time of supply is unknown to the supplier, a self-billed invoice may be allowed to be issued by a customer (recipient) with the approval of the Director General. For example, a publisher can adopt a self-billing arrangement when paying royalties to taxable authors.
124. The issuance of this self-billed invoice by the recipient to himself shall be subject to the following conditions:
(a) the value at the time of supply is not known by the supplier;
(b) the recipient and the supplier are both registered persons;
(c) the recipient and the supplier agree in writing to a self-billed invoice; and
(d) the supplier and the recipient agree that the supplier shall not issue a tax invoice.
125. Any recipient approved by the Director General to issue self-billed invoice, shall be subject to the following conditions:
(a) the document may, with the prior approval of the Director General, be treated as a tax invoice;
(b) a copy of any self-billed invoice is provided to the supplier and another copy is retained by the recipient; and
(c) in the case where the self-billed invoice is issued before the time of removal of such goods, or before the time the goods are made available, or before the time the services are performed, the self-billed invoice shall be issued with payment
2. Guide
Step 1 : Supplier > Maintenance > Create / Edit Supplier, setup the Billing Details- Billing Type = Self Billing
- Self Billing Approval Number = approval number given by Director General of Royal Custom
- Self Billing Approval Date = date of approval by Director General of Royal Custom
- the GRN / SINV created will have the word "Self-Billed"
- From here, you can list all self-billed SINV
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