There is no shortage of benefits of self-billing agreements. Unfortunately, the same is true for potential obstacles. As long as the customer and supplier take the necessary steps to ensure accuracy and compliance, this type of financial agreement is of great use. If you don`t keep the required records, the invoices charged by yourself are not correct VAT bills. For all bookings with the supplier mentioned in the document, you must increase the invoices charged yourself for up to twelve months (or the duration of the contract). You must complete self-billed documents with the supplier`s name, address and VAT identification number, as well as any other details that make up a full VAT invoice. Remember to keep all these details and be able to produce them for inspection by the VATman if necessary. 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. 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-counting naturally gives the customer more responsibility – they are the only ones who can establish and issue a self-count. Whether your role is the customer or the supplier, both parties must agree to the terms of the contract. While the self-billing conditions dictated by the customer and the supplier, both must be aware of the compliance with specific VAT conditions. To do this, suppliers must take the following steps: HMRC proposes the following model for a self-billing agreement. If you are a supplier who receives self-billed electronic invoices from a customer in an EU country, you need to make sure that: After confirmation of the agreement, customers now have long-term responsibility for invoices for each transaction until the contract expires. The self-billing count must contain the supplier`s name, address and VAT identification number. In addition, the list „The VAT displayed is your VAT due to HMRC“ should be included in each invoice. 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. Typically, the VAT bill is issued by the supplier, but in certain circumstances the customer prepares the invoice and gives a copy to the supplier.