„Self-invoicing is a commercial agreement between a supplier and a customer, under which the customer issues the supplier`s invoice and transmits a copy of the payment to the supplier. Can you only issue invoices to your supplier if you have accepted this accounting method? » HMRC Turnover tax 700/62 Self-invoicing agreements can be concluded with suppliers provided that the following conditions are met: you can only issue invoices yourself to suppliers with whom you have concluded formal self-billing agreements. The agreement must be concluded before the start of self-invoicing. The table below summarizes what the VAT rules say about what constitutes a valid self-invoicing agreement. You can claim input VAT on a self-invoiced invoice during the billing period in which the tax point falls (in accordance with point 5.1 above). In addition to the details of a full VAT invoice, a self-invoicing invoice to a supplier also includes that EU countries can set their own self-invoicing conditions. You must therefore ensure that any agreement you enter into for a supplier in another country satisfies these conditions. In the table below, you`ll find out what you need to keep in mind when you have self-billing agreements for deliveries of goods with non-UK businesses. The terms of the agreement are a matter between you and your customer, but there are certain conditions that you both need to meet to ensure that you comply with VAT rules. VAT invoices are usually issued by the supplier. However, in certain circumstances, the customer can prepare the invoice and send the copy to the supplier. This agreement between the customer and the supplier is called self-invoicing. Suppliers can be established in the United Kingdom, the European Union or countries outside the EU.
Invoices cannot be issued by a supplier who has changed their VAT identification number, unless a new agreement has been concluded. Once you have given your consent, paragraph 6.3 describes the main rules that apply to you as self-billing recipients. The customer will ask for your consent in writing. An example of a written agreement can be found in section 8. The agreement your customer asks you for is similar to this one. Guidelines have been added to section 3.1 to clarify the requirements for self-billing agreements. Self-billing accounts are established when the customer prepares the supplier`s invoices and sends them to the supplier for payment. In order to conclude this agreement, both the customer and the supplier must be registered for VAT purposes. Here is an example of an acceptable self-billing agreement (PDF, 172KB, 1 page) You can reproduce it if you wish, but you do not need to formulate your agreement in the same way, as long as the agreement you will use contains all the necessary information, as explained in section 3. .