- Self-billing is an arrangement where a customer bills on behalf of a supplier.
- It is used between VAT registered parties and requires a formal agreement.
- Benefits include saving time and money, easier invoicing, and better cash flow forecasts.
- Disadvantages include potential VAT issues and the supplier’s liability for output tax.
- Proper adherence to regulations is crucial to avoid invalid VAT invoices.
Source: mha.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
