Billing Agreement Invoice

You remain responsible for retaining these records when you subcontract self-billing to a third party. You can only issue invoices yourself to suppliers with whom you have 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. A customer who wishes to proceed with self-invoicing at the end of the contract period must verify the agreement and obtain proof that the supplier has agreed to continue self-billing for another specified period. In any case, it is advisable to carry out a check every 12 months to confirm that the supplier is still registered for VAT purposes and is ready to continue with the self-invoicing agreement. This is an obligation for the supplier to issue a VAT invoice to the registered CUSTOMER for VAT, regardless of the current rate of your goods or services. Instead of providing your own invoices, you can use self-billing accounts as part of your limited liability company`s accounting documents. This is what HMRC accepts for VAT purposes.

However, we recognize that you may have your own billing system. If you wish to continue to do so, we advise you to present your invoice to yourself, but not to send it to us. Instead, hang it on the self-calculation bill. Since the self-declaration rules are not clearly defined, consult a qualified tax specialist if you want to enter into an agreement with the suppliers. Remember that you do not add VAT on invoices you are charged to suppliers who are not registered on turnover. Self-billing is a financial agreement between a customer and a supplier. In most cases, the customer must prepare the invoice and send it to the supplier at the same time as the payment. This type of financial agreement brings the facility it desperately needs in transactions and virtually relieves the supplier of the responsibility of writing an invoice and sending it to its customer. Self-invoicing ensures that cash flows are always consistent and fluid.

You need to create a new agreement if your supplier transfers its activities as a continued business and you and the new business owner want to continue with self-billing. .