In traditional invoicing the supplier raises and sends the invoice; in self-billing the customer does it on the supplier’s behalf. Self-billing wins where the customer holds the underlying data and pays many suppliers — it’s faster and more consistent — while traditional invoicing suits one-off or supplier-led supplies.
Key points
- Traditional = supplier-led; self-billing = customer-led.
- Self-billing is faster and more consistent at volume.
- Both keep the same money flow: customer pays supplier.
Who raises the invoice
The core difference is direction: traditional invoicing is supplier-led, self-billing is customer-led. In both, the customer pays the supplier.
Speed and consistency
With self-billing you don’t wait on supplier invoices, and every document follows the same compliant format — a big advantage when you pay hundreds of subcontractors, drivers or affiliates each period.
When traditional invoicing is better
Where the supplier holds the pricing, the supply is one-off, or there’s no ongoing relationship, traditional invoicing is simpler. Self-billing pays off with volume and a standing agreement.
This is general information, not tax advice — confirm your own position with your accountant or HMRC (see VAT Notice 700/62 on self-billing).