Can a buyer sign invoices for a supplier?

Yes, if the supplier grants written authority in a Self-Billing Invoice Agreement and both parties document consent. The arrangement should capture intent and attribution to meet ESIGN Act standards (15 U.S.C. ch. 96, 2000) and applicable state law such as UETA.

Does an e-signature make the agreement enforceable?

An electronic signature can be enforceable when intent to sign, consent to transact electronically, attribution to the signer, and reliable record retention are documented, consistent with ESIGN and state UETA frameworks.

Is notarization required for invoices?

Generally no. Invoices are not typically notarized. Notarization or RON is only necessary where a specific statute or counterparty requires an acknowledged or notarized instrument.

What happens if the supplier disputes an issued invoice?

Follow the agreement’s dispute-resolution clauses: document the dispute, suspend affected payment per terms, reconcile records, and escalate per the contract’s timelines and audit procedures.

How long must invoice records be kept?

Retain invoices for at least three years for tax purposes (IRC §6501(a)); retain six years for HIPAA-covered health records or longer where state law or contract requires it.

Can this arrangement be used for healthcare billing?

Yes, but protect PHI and execute a Business Associate Agreement (BAA) where required. Ensure workflows meet HIPAA security and retention obligations (45 CFR §164.530(j)). Platforms should support BAAs and appropriate controls.

Electronic Signature
Templates
Finance
Self-Billing Invoice Agreement

Self-Billing Invoice Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

SELF-BILLING INVOICE AGREEMENT

This Self-Billing Invoice Agreement ("Agreement") is entered into as of Effective Date: between Principal Name: and Supplier Name:

PARTIES' DETAILS

Principal (Buyer) Address and Contact Principal Contact Person Principal Phone / Email Supplier (Seller) Address and Contact Supplier Contact Person Supplier Phone / Email

RECITALS

WHEREAS the Principal procures goods and/or services from the Supplier and wishes to prepare invoices on behalf of the Supplier in accordance with a self-billing arrangement; and

WHEREAS the Supplier agrees to permit the Principal to issue self-billed invoices subject to the terms and conditions set out in this Agreement.

DEFINITIONS

For the purposes of this Agreement, "Self-Billed Invoice" means an invoice issued by the Principal on behalf of the Supplier that records supplies of goods and/or services supplied by the Supplier to the Principal.

SCOPE OF SELF-BILLING

The Principal shall, on the dates and in the manner set out in this Agreement, issue Self-Billed Invoices for the supplies of goods and/or services listed in Schedule of Supplies or otherwise agreed between the parties. The parties agree that Self-Billed Invoices issued by the Principal will be treated as though issued by the Supplier for all purposes, subject to the terms of this Agreement.

Supplies Covered by Self-Billing (describe)

SUPPLIER CONSENT AND RESPONSIBILITIES

The Supplier hereby consents to the Principal issuing Self-Billed Invoices on its behalf for the supplies described above and warrants that:

the Supplier is properly registered for all applicable taxes related to the supplies;
the information the Supplier supplies to the Principal for inclusion on Self-Billed Invoices will be accurate and complete;
the Supplier will notify the Principal promptly of any change in tax status, pricing, or other information material to invoicing.

Supplier VAT/GST or Tax Registration Number

Supplier consents to self-billing: I confirm consent and authority to agree

INVOICE CONTENT & ISSUE

Self-Billed Invoices will include, at minimum: date of supply, description of goods/services, quantity, unit price, net amount, applicable tax amount, total amount payable, Supplier name and tax registration number, and a unique invoice reference number. The Principal shall retain copies of all Self-Billed Invoices in accordance with record retention requirements.

Invoice Frequency Invoice Reference Prefix (if any)

PRICING, PAYMENT AND BANKING

Unless otherwise agreed in writing, the price for supplies shall be the price agreed between the parties. Payment shall be made in Currency: on these terms:

Principal Bank Details for Payment

Late payment shall incur interest at the rate of on overdue amounts from the due date until payment in full.

TAX OBLIGATIONS

The parties acknowledge that liability for remittance of applicable taxes is governed by tax law. The Principal's issuance of a Self-Billed Invoice does not relieve the Supplier from liability for correct tax treatment of supplies. Where tax is not charged in error, the Supplier will indemnify the Principal for any liability arising from incorrect tax treatment attributable to the Supplier's incorrect information.

Party Responsible for Tax Remittance (select)

RECORDS, AUDIT AND LIABILITY

Each party shall retain records relating to supplies and Self-Billed Invoices for a minimum period required by law and shall permit the other party, or an appointed auditor, to inspect such records on reasonable notice during normal business hours for the purpose of verifying compliance with this Agreement. Any overpayment or underpayment discovered by audit shall be corrected by the party responsible within thirty (30) days of written notice.

Audit Contact Name and Email

CONFIDENTIALITY & DATA PROTECTION

Each party shall keep confidential all non-public information obtained under this Agreement and shall process any personal data in accordance with applicable data protection law. Confidential information shall not be disclosed except to employees, agents or professional advisors who need access for the purpose of performing this Agreement and who are bound by obligations of confidentiality.

TERMINATION

This Agreement may be terminated by either party giving no less than days' written notice to the other party. Termination shall not affect liabilities accrued prior to termination and the parties shall cooperate to ensure an orderly transition.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction of:

AMENDMENT

No amendment to this Agreement is effective unless made in writing and signed by authorized representatives of both parties.

Additional Terms or Notes

Principal Printed Name:

By:

Date:

Supplier Printed Name:

By:

Date:

What a Self-Billing Invoice Agreement Is

Self-Billing Invoice Agreement is a bilateral contract where a buyer is authorized to issue invoices on behalf of a supplier for goods or services delivered. It defines invoicing frequency, required data elements, tax treatment, payment and dispute procedures, and correction mechanics. In the United States the arrangement affects vendor records, backup withholding exposure, and information-reporting obligations; parties should confirm the approach meets IRS recordkeeping and reporting rules. The agreement also establishes acceptance criteria, audit rights, and reconciliation responsibilities between buyer and supplier.

Why Parties Use a Self-Billing Arrangement

A Self-Billing Invoice Agreement streamlines accounts payable, reduces manual invoice handling, and clarifies which party is responsible for tax reporting and information retention, reducing disputes and improving cash-flow predictability.

Who Typically Adopts Self-Billing Agreements

Procurement and accounts payable teams commonly use Self-Billing Invoice Agreements to centralize billing for high-volume supplier relationships and reduce manual invoice processing.

Buyers (large retailers, distributors) issue standardized invoices for high-volume supplier networks.
Freelancers and service providers use agreements where buyers consolidate billing for multiple projects.
Manufacturing and logistics vendors prefer predictable billing cycles tied to goods receipt or delivery.

Smaller suppliers should weigh administrative impact and tax-reporting responsibilities before consenting to buyer-issued invoices.

Step-by-Step: How to Complete a Self-Billing Invoice Agreement

Follow these steps to complete and execute a Self-Billing Invoice Agreement accurately and maintain compliant records.

01

Prepare Documents: Gather prior invoices, purchase orders, and supplier tax ID records.
02

Draft Terms: Specify invoicing rules, tax allocation, payment terms, and dispute timelines.
03

Review with Parties: Both buyer and supplier review terms and agree in writing.
04

Sign and Distribute: Execute signatures, retain copies, and integrate invoicing with accounting systems.

Core Sections to Include in the Agreement

A professional Self-Billing Invoice Agreement clearly defines invoicing mechanics, tax allocation, payment rules, audit rights, data standards, and termination conditions.

Invoicing Rules

Specifies who issues invoices, billing frequency, required line-item detail, currency, purchase order references, and acceptable electronic formats such as PDF, DOCX, or structured XML; defines adjustments and credit-note procedures.

Tax Handling

Allocates responsibilities for sales, use, and information-reporting taxes; identifies who maintains taxpayer identification, who prepares 1099 reporting, and how backup withholding will be handled to avoid IRS penalties.

Payment Terms

Defines net payment terms, early-payment discounts, late fees, remittance instructions, and whether disputed items may be withheld from payment pending resolution.

Audit & Records

Details audit access, document retention obligations, reconciliation schedules, access controls, and procedures for corrections or retroactive adjustments.

Data & Format

Specifies required invoice fields (dates, PO numbers, descriptions, unit prices, tax amounts), acceptable file formats, electronic transmission methods, and integration points (EDI or API).

Termination

Sets notice periods, termination triggers (material breach, insolvency, repeated discrepancies), and close-out obligations including final reconciliation and settlement of outstanding balances.

Essential Data Elements for Each Invoice

Seller Legal Name: Full registered name as on W-9.

Buyer Legal Name: Full legal entity name and address.

Invoice Number: Unique sequential identifier; no duplicates.

Invoice Date: Enter as MM/DD/YYYY format.

PO/Contract Ref: Exact purchase order or contract identifier.

Line-Item Details: Description, quantity, unit price, and tax.

Configuring an Online Self-Billing Workflow

Configure platform fields and automation rules to generate, validate, and transmit buyer-issued invoices consistently and securely.

Workflow Field and Configuration Purpose	Field identifier \| How to configure field in platform
Invoice number field configuration options	Auto-generate sequential IDs; set required and read-only flags.
Effective date field requirements and validation	Validate MM/DD/YYYY format; default to goods receipt date where appropriate.
Line-item mapping and tax calculation settings	Map catalog SKUs to descriptions; apply tax rules by jurisdiction.
Transmission and integration settings	Configure API or EDI endpoints, email notifications, and archival destinations.

Where Self-Billing Invoices Are Sent and Stored

Routes depend on buyer AP processes and regulatory obligations; select delivery and archival destinations accordingly.

Accounts Payable: Send to buyer AP email or upload to AP portal for processing.
Supplier Records: Supplier receives a copy for reconciliation and tax recordkeeping.
Tax Reporting: Retain copies for 1099 reporting and potential audits.
ERP Integration: Post automatically to buyer and supplier accounting systems via API.

Technical and Security Requirements for eSubmission

Use eSignature and secure transmission channels to capture consent, preserve an audit trail, and ensure invoice integrity during transfer.

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.
Audit Trail: Timestamps, IP addresses, and action history.
Integrations: Integrates with Salesforce, NetSuite, Google Workspace.

Key Timelines, Deadlines, and Processing Expectations

Important dates include delivery of tax information, report filing deadlines, payment due dates, and statutory retention obligations for audit purposes.

Provide W-9 when requested by payer:

No statutory due date; deliver promptly to avoid backup withholding.

File 1099-NEC to recipients and IRS:

Recipient and IRS copies due Jan 31 each year for nonemployee compensation.

Tax record retention period:

IRS minimum retention three years (IRC §6501(a)) for tax records.

Contractual payment due dates:

Adhere to agreed terms such as Net 30 or Net 60 to avoid disputes.

Dispute notification window:

Agree on timeframe (commonly 30 days) for reporting invoice discrepancies.

Common Mistakes to Avoid

Failing to specify required invoice fields leads to mismatches during reconciliation and may delay payments while buyers request corrections or supporting documents.
Not addressing tax responsibilities or TIN verification can trigger backup withholding at 24% and increase administrative burden for both parties.
Using ambiguous acceptance terms or no dispute timeline causes recurrent chargebacks and difficulty resolving quantity or price disagreements.
Not integrating electronic workflows or using inconsistent file formats (scanned images without structured data) increases manual entry errors and processing time.

Penalties and Financial Risks

1099 Penalties: Late filing penalties $60–$330 per form.

Intentional Disregard: Penalty at least $660 per form, no cap.

Backup Withholding: 24% withholding on missing or incorrect TINs.

I-9 Violations: Fines $281–$2,789 per violation.

Contract Breach: Damages, termination, and potential litigation.

Audit Exposure: Increased chance of IRS or state audit.

Best Practices to Maximize Enforceability and Minimize Risk

Adopt clear procedures and document consents to reduce legal uncertainty and support enforceability under U.S. e-signature rules.

Verify e-signature legal framework and exceptions

Confirm the agreement satisfies the ESIGN Act (15 U.S.C. ch. 96, 2000) and applicable state UETA rules; identify statutory exceptions such as wills or certain court filings that may not be e-signable.

Obtain clear consent and disclosures from parties

Provide consumer-facing consent and access disclosure where required (15 U.S.C. §7001(c)), document the consent record, and make procedures for withdrawing consent readily available.

Allocate tax reporting responsibilities explicitly

State which party will prepare and file any required information returns, who maintains TIN records, and confirm backup withholding procedures to avoid IRC §6721 penalties.

Preserve an audit trail and retention policy

Capture signer attribution, timestamps, and storage controls; retain records per IRS rules (IRC §6501(a)) and HIPAA where applicable to support audits and disputes.

Pricing and Feature Comparison for eSignature Providers

Baseline pricing and capability comparison to help evaluate eSignature options for self-billing invoice workflows.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions

Answers to frequent questions about executing, signing, and maintaining Self-Billing Invoice Agreements, including e-signature validity and tax recordkeeping.

Need help? Contact support

Can a buyer sign invoices for a supplier?
Yes, if the supplier grants written authority in a Self-Billing Invoice Agreement and both parties document consent. The arrangement should capture intent and attribution to meet ESIGN Act standards (15 U.S.C. ch. 96, 2000) and applicable state law such as UETA.
Does an e-signature make the agreement enforceable?
An electronic signature can be enforceable when intent to sign, consent to transact electronically, attribution to the signer, and reliable record retention are documented, consistent with ESIGN and state UETA frameworks.
Is notarization required for invoices?
Generally no. Invoices are not typically notarized. Notarization or RON is only necessary where a specific statute or counterparty requires an acknowledged or notarized instrument.
What happens if the supplier disputes an issued invoice?
Follow the agreement’s dispute-resolution clauses: document the dispute, suspend affected payment per terms, reconcile records, and escalate per the contract’s timelines and audit procedures.
How long must invoice records be kept?
Retain invoices for at least three years for tax purposes (IRC §6501(a)); retain six years for HIPAA-covered health records or longer where state law or contract requires it.
Can this arrangement be used for healthcare billing?
Yes, but protect PHI and execute a Business Associate Agreement (BAA) where required. Ensure workflows meet HIPAA security and retention obligations (45 CFR §164.530(j)). Platforms should support BAAs and appropriate controls.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now