With self-billing, you add VAT to the invoice only where the supplier is VAT-registered — using the VAT number recorded in your agreement. If the supplier isn’t VAT-registered, no VAT is shown. You can’t reclaim input VAT on a self-billed invoice raised for a supplier who isn’t VAT-registered, so keeping each supplier’s VAT status current matters.
Key points
- Show VAT only where the supplier is VAT-registered.
- Keep each supplier’s VAT number and status current.
- You can’t reclaim input VAT for a non-registered supplier.
- Standard, reduced, zero-rated and exempt treatments all apply as normal.
The VAT-registration rule
VAT can only be shown on a self-billed invoice where the supplier is VAT-registered. That’s why the self-billing agreement requires the supplier to tell you if they stop being registered or their VAT number changes — otherwise you could show VAT that isn’t due, or reclaim input tax you’re not entitled to.
Reclaiming input VAT
A VAT-registered customer normally reclaims the VAT on self-billed invoices as input tax, in the same way as any other purchase invoice. But if the supplier wasn’t VAT-registered at the time, there’s no valid VAT to reclaim.
VAT rates and treatments
Self-billed invoices use the normal VAT rates — 20% standard, 5% reduced, 0% zero-rated, or exempt — depending on the supply. In construction, the CIS domestic reverse charge changes who accounts for the VAT.
This is general information, not tax advice — confirm your own position with your accountant or HMRC (see VAT Notice 700/62 on self-billing).