If you are a supplier who receives electronic self-billing invoices from a customer in an EU country, you need to make sure that: 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. 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. HM Revenue – Customers (HMRC). The rules are set out in the VAT 700/62 communication. You can find it on the HMRC website. Look for the “self-bill.” Self-billing agreements can be entered into with suppliers as long as the following conditions are met: self-billing has no influence on your contractual or commercial agreements between Catch and your Limited Company and has absolutely no impact on IR35 considerations. 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.
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. You are still responsible for keeping these records when you outsource self-billing to a third party. Please accept this electronic submission of the form as acceptance of the agreement. If the company has changed its name but retains the same VAT number, send us a copy of the name change certificate issued by the Registrar of Companies. There is no need to sign a new self-billing agreement. However, if the name and VAT number have changed, you will also need a new self-billing agreement. E-Mailemail@example.com to request a new form. Normally, you don`t need to review an agreement if you provide a provider with self-billed invoices for less than 12 months. Be careful not to consider self-charged invoices as purchase invoices and to recover VAT upstream. If you misrepresent VAT as an upstream tax, you must correct the error.
If your business opts out, you must inform us and enter into a new self-billing contract. You can only collect tax on invoices charged by yourself if you have met all the requirements of registration. A VAT invoice contains specific information about the goods or services you provide. All your customers need VAT invoices as proof of the VAT you have charged them. If you provide goods or services valued at zero for VAT, you are not required to charge VAT.