A self-billing agreement is a written agreement between the customer and each supplier that must be in place before any self-billed invoice is raised. It records that the supplier accepts self-billed invoices, won’t raise their own for those supplies, and will notify the customer of any change to their VAT registration. It also has an expiry or review date — typically reviewed at least every 12 months.
Key points
- Must be in writing and in place before self-billing starts.
- Records that the supplier accepts self-billed invoices and won’t raise their own.
- The supplier must notify you of any VAT-registration change.
- Reviewed regularly — commonly at least every 12 months.
What the agreement must contain
Under HMRC’s rules, a self-billing agreement should record the supplier’s agreement to accept invoices the customer raises on their behalf; that the supplier will not issue their own VAT invoices for those supplies; that the supplier will tell the customer if they stop being VAT-registered or if their VAT number changes; and an expiry date for the agreement.
How long does it last?
A self-billing agreement runs for the period you both agree, but it should be reviewed regularly — commonly at least once every 12 months — to confirm the supplier still accepts self-billing and their VAT details are current. If the supplier changes or their VAT status changes, the agreement should be updated.
Keeping records
You must keep a record of each supplier who has agreed to self-billing, including their name, address and VAT number. Apex Billing keeps these details per supplier and flags when an agreement is due for review.
This is general information, not tax advice — confirm your own position with your accountant or HMRC (see VAT Notice 700/62 on self-billing).