Remember that EU countries can set their own self-billing conditions. You must therefore ensure that any agreement you make for one supplier in another country also meets these conditions. Self-billing is an agreement between a supplier and a customer. The customer and supplier must be subject to VAT. The customer sets the supplier`s invoice and sends a copy to the supplier with the payment. The terms of the agreement are a matter between you and your client, but there are certain conditions that you must both comply with to ensure that you comply with VAT rules. The number of VAT on the self-defied bill your customer sends you is your intermediate consumption tax. The date you need to take this into account in HMRC will depend on the date of delivery of goods or services to VAT. This delivery date is normally the date on which you actually deliver goods or services to your customer, so you may have to account for VAT before receiving or paying the bill yourself. If you don`t keep the required records, the invoices charged by yourself are not correct VAT bills. If an HMRC official wants to see the agreement, you have to show it to them.
Keep in mind that you do not add VAT to self-charged invoices that you issue to suppliers that are not subject to VAT. If an agency self-bills on your behalf, it`s up to you to make sure the invoices are issued correctly. The whole establishment is an agreement that has a lot of legal weight and must be agreed by your company or agency. If a supplier is no longer registered for VAT, you can continue to charge it yourself, but you cannot issue it with VAT bills. Your self-billing agreement with this provider is no longer covered by VAT rules. Suppliers may be headquartered in the UK, the European Union or third countries. Invoices cannot be issued by any supplier who has changed their VAT number unless a new agreement has been reached. Normally, the VAT delivery date is the actual date on which goods or services are made available to you, to you, to the customer. However, if you issue a self-billed invoice within 14 days of that delivery date, the date you charge will be fixed on the date of booking for VAT purposes.
A self-billing agreement is an agreement between a supplier and its customer. One of the advantages is that you don`t have to worry about writing an invoice and sending it to your customer. The invoice contains the name of the company, the address of the company and each vat number. Self-billing invoices must be labeled as “self-billing” by law. Self-billing is a quick and easy way for your customers to pay you. It also ensures that your cash flow is better and the relationship you have with your customers is also better. You can only enter into a self-billing agreement if your provider agrees to place one. If you don`t agree with your supplier, your bills billed by yourself are not valid VAT bills – and you can`t get the UPstream VAT they represent. You can set up self-billing agreements with your suppliers, as long as you are able to meet certain conditions, you must do so: if you want to set up a self-billing agreement, you do not need to inform HMRC or get permission from those providers.