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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. One of the many advantages of self-billing is that customers have the freedom to manage their self-billing. In scenarios where the supplier does not have the initiative to charge the customer, the customer now has the opportunity to draw the supplier`s attention to the invoice and speed up the transaction process. 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. All self-billed invoices must include the list: “The VAT displayed is your VAT which is due to HMRC.” If an HMRC official wants to see the agreement, you have to show it to them. 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. Customers must comply with the following conditions if they wish to comply with a self-billing agreement with suppliers: If you do not keep the necessary documents, the invoices you have made yourself are not correct VAT invoices. If one of your customers wishes to establish a self-billing agreement with you, you will be asked to accept it in writing. If you agree, you will receive a self-billing agreement that you can sign. If you want to establish a self-billing agreement, you don`t need to talk about it or get permission from HMRC. They must: while the self-billing conditions dictated by the customer and the supplier, both must be aware of compliance with certain VAT conditions.

To do this, suppliers must take the following steps: You remain responsible for keeping these records when you outsource self-billing to a third party. It`s no secret that self-billing offers compelling benefits to both the supplier and the customer. Here is the top 4: self-billing is an agreement between a supplier and a customer. The customer sets the invoices and then sends them to the supplier with the payment. In the VAT 700/62 communication, you will find out how customers and their suppliers should process VAT when using self-billing agreements. Self-billing promotes the unit of operation, which facilitates management. Since the customer provides the invoice, he will already incorporate all the necessary information into the supplier`s reference and usability invoice. 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. The number of VAT on the self-defied bill your customer sends you is your intermediate consumption tax. The date you need to take this into account in HMRC will depend on the date of delivery of goods or services to VAT.

This delivery date is normally the date on which you actually deliver goods or services to your customer, so you may have to account for VAT before receiving or paying the bill yourself. 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. In some cases, companies only charge VAT bills to customers who request them. As it can be difficult to determine whether a customer is immediately registered for VAT, this often becomes the norm. Remember. The supplier and the customer must be subject to VAT before entering into a self-billing contract. Once you have entered into a self-billing agreement with a supplier, you must, during the period of the agreement, invoiced yourself for all transactions with i