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. 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 registered office and a possible VAT identification number. Self-billing accounts must be legally marked by “self-billing” as a reference. 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. If an agency performs the self-billing on your behalf, it is up to you to ensure that the invoices are issued correctly. The whole setup is an agreement that has a lot of legal weight and needs to be agreed upon by your company or agency. If a supplier is no longer registered for VAT, you can continue to charge them yourself, but you cannot charge them VAT. Their self-invoicing agreement with this supplier is no longer covered by VAT rules. “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 This rule is usually governed by the tax point. The rules are described in sections 14 and 15 of the VAT 700 Communication: the VAT guide. For more information on the impact of these rules on self-billed deliveries, see section 5 of this press release. Your suppliers don`t just have to be based in the UK.
They can invoice companies located in EU countries or in countries outside the EU themselves. Verification of agreements is important, because you can confirm that your supplier is: Self-invoicing benefits hays and reduces requests and we do not have to check invoices in working time tables. If you wish, you can prepare your own agreement or be part of the contract with your supplier. If you do, add all the required information into an agreement. If you`re not sure if you want to break your suppliers yourself, section 2 will help you evaluate the pros and cons. It is unlikely that your self-calculation calculation is wrong, as it is taken from the working time table that you submitted and that the client authorized. If you have a question, please contact our call centre on 0203 727 2977. Remember that you do not add VAT on invoices you are charged to suppliers who are not registered on turnover. If you do not keep the necessary records, the invoices that you yourself invoiced are not correct VAT invoices. If you use a third party to invoice yourself on your behalf, you are nevertheless responsible for issuing the invoices. If you make invoices available to a supplier yourself for a period of less than 12 months, you normally do not need to check the agreement. There are several scenarios in which it may be useful to enter into a self-invoicing agreement with a supplier: when developing a contractor data set, the contractor`s reference number (7 digits) is associated with the self-billing number reference, and the numeric 00 number is added to form a unique nine-digit number, increased by one when a self-invoicing invoice is issued.
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