With ordinary purchase invoicing you record an invoice the supplier sent you. With self-billing you create that purchase invoice yourself, on the supplier’s behalf, under an agreement. Both end up as a purchase in your VAT records, but self-billing puts you in control of when and how the invoice is raised.
Key points
- Purchase invoicing = record what the supplier sent.
- Self-billing = you create the purchase invoice yourself.
- Both become a purchase in your VAT records.
- Self-billing needs a written agreement; purchase invoicing doesn’t.
The document’s origin
The only real difference is who authors the invoice. In self-billing it’s you, the customer, which is why an agreement and the self-billing markings are required.
This is general information, not tax advice — confirm your own position with your accountant or HMRC.