Glossary ยท Self-billing

VAT (Value Added Tax)

A tax charged on most goods and services in the UK, currently at a standard rate of 20%.

VAT-registered businesses charge VAT on their sales (output tax) and reclaim VAT on their purchases (input tax), paying the difference to HMRC on a VAT return.

General information, not tax advice โ€” confirm your own position with your accountant or HMRC.

Related terms

Ready to self-bill your suppliers?

Raise your first compliant self-billed invoice today โ€” free to start.

Get started