If one of your customers wants to set up a self-billing arrangement with you, they’ll ask you to agree to this in writing. If you agree, they’ll give you a self -billing arrangement to sign.
The terms of the agreement are a matter between you and your client , but there are certain conditions you’ll both have to meet to make sure you comply with VAT regulations.
For VAT purposes you’ll have to do all of the following:
- sign and keep a copy of the self-billing agreement.
- agree not to issue any sales invoices to your customer for any transaction during the period of the agreement.
- agree to accept the self-billing invoices that your customer issues.
- tell your customer at once if you change your VAT registration number or cancel your VAT registration.