Any UK business can use self-billing with a supplier, provided both sign a written self-billing agreement and follow the VAT invoice rules. It’s most useful to customers who hold the data invoices are based on and who pay many suppliers regularly. The supplier must agree, and if VAT is to be shown, be VAT-registered.
Key points
- Any UK business can self-bill with a written agreement.
- No minimum size — sole traders to large firms.
- Suppliers must agree and notify VAT changes.
The customer’s side
The customer must have a written agreement with each supplier, raise correctly formatted invoices, and keep records of who has agreed to self-billing. There’s no size threshold — sole traders through to large firms can self-bill.
The supplier’s side
The supplier must agree to accept self-billed invoices, stop issuing their own for those supplies, and tell the customer of any VAT-registration change. Suppliers don’t need to be VAT-registered, but VAT can only be shown if they are.
This is general information, not tax advice — confirm your own position with your accountant or HMRC (see VAT Notice 700/62 on self-billing).