There are several scenarios in which it may be useful to enter into a self-billing contract with a supplier: if a supplier is no longer registered for VAT, you can continue to charge it yourself, but you cannot issue it with VAT invoices. Your self-billing agreement with this provider is no longer covered by VAT rules. If you are a supplier who receives electronic self-bills from a customer in an EU country, you need to make sure that: you can set up self-billing agreements with your suppliers as long as you are able to meet certain conditions: sometimes it would be much quicker and more efficient to enter your suppliers` invoices into your accounting system and then send them a copy of their invoice! Well, you can do it if you have a self-billing agreement with your suppliers. There are special rules if you have a self-billing agreement and are involved in transactions for which the self-granting regime applies to mobile phone and computer chip deliveries. 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 must set up a new agreement if your provider transfers its business as a current business and if you and the new owner want to continue self-billing. See also: Self-billing – Increase in vat-free self-billed bills 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. It is not necessary to obtain prior authorization from the VATman. Each company can self-reward, provided the arrangements meet the legal requirements. A self-billing contract usually lasts twelve months. Then you need to check the agreement to prove to HMRC that your supplier has agreed to accept the invoices collected on your behalf. You are still responsible for keeping these records when you outsource self-billing to a third party. Self-billing is an agreement between a supplier and a customer.