What is Self-Billing?
In a standard invoicing flow, the seller (you) creates and sends an invoice to the buyer (your client). With self-billing (självfakturering), this is reversed — the buyer creates the invoice and sends it to you for approval. Self-billing is regulated under Swedish VAT law (Mervärdesskattelagen) and is a legitimate invoicing method when certain conditions are met.When is Self-Billing Used?
Self-billing is common in industries where the buyer has better information about quantities, hours, or amounts:- Staffing and subcontracting — the client knows exactly how many hours you worked based on their systems
- Large enterprise procurement — corporate buyers with automated procurement systems
- Agriculture and raw materials — buyers weigh and measure goods upon delivery
- Freelance platforms — some platforms create invoices on behalf of freelancers
Requirements for Self-Billing
For a self-billing arrangement to be valid under Swedish law:1. Written Agreement
There must be a prior written agreement between buyer and seller authorizing the buyer to issue invoices on the seller’s behalf.2. Mandatory Invoice Fields
The self-billing invoice must contain all the standard invoice fields required by Swedish law:- Seller’s and buyer’s names, addresses, and organization numbers
- Invoice number (sequential)
- Invoice date
- Description of goods/services
- Amounts, VAT rate, and VAT amount
- Payment terms
3. “Självfaktura” Marking
The invoice must be clearly marked as “Självfaktura” (self-billing invoice) to distinguish it from a regular invoice.4. Seller Approval
The seller must have the opportunity to review and approve the invoiced amounts. The agreement should specify how disagreements are handled.VAT Responsibility
Important: The seller is always responsible for reporting and paying VAT, even in a self-billing arrangement.The self-billing arrangement only changes who creates the invoice document. It does not change who owes the tax. As the seller, you must:
- Include the self-billed amounts in your VAT return (momsdeklaration)
- Report the output VAT (utgående moms) as you would for any sale
- Keep the self-billing invoices as part of your bookkeeping records
Self-Billing in Aourly
When creating an invoice in Aourly, you can mark it as a self-billing invoice:- Create a new invoice as normal
- Enable the self-billing option
- Aourly adds the “Självfaktura” marking to the invoice
- The invoice layout is adjusted to reflect the self-billing arrangement
- Send or save the invoice
Tip: Self-billing in Aourly is typically used when your client has requested this arrangement. Discuss with your client whether self-billing is appropriate for your working relationship.
Self-Billing vs. Regular Invoicing
| Aspect | Regular Invoice | Self-Billing Invoice |
|---|---|---|
| Who creates the invoice | Seller | Buyer |
| Who is responsible for VAT | Seller | Seller |
| Written agreement required | No | Yes |
| Must be marked specially | No | Yes (“Självfaktura”) |
| Common for freelancers | Yes | Less common |
FAQ
Who is responsible for the VAT on a self-billing invoice? The seller is always responsible for reporting and paying VAT, even though the buyer issues the invoice. Can any business use self-billing? Self-billing requires a prior written agreement between both parties. Both must agree to the arrangement, and the seller must have the opportunity to review and approve the invoiced amounts. How do I mark a self-billing invoice in Aourly? When creating an invoice, enable the self-billing option. Aourly adds the required “Självfaktura” marking and adjusts the layout accordingly.Source: Skatteverket, Mervärdesskattelagen (ML 2023:200)
Even though the buyer issues the invoice, the seller remains responsible for reporting and paying VAT.