What is self-billing?
Self-billing is when a Value-Added Tax (VAT) registered customer assumes responsibility for issuing their supplier's VAT invoice. You may prepare the self-billing invoice provided:
- there is prior agreement with the supplier that you may draw up and issue the invoice
- you meet all conditions relating to the content, and the issue, of the invoice
- you have agreed procedures for the acceptance by the supplier of the validity of the invoice
- and
- you endorse the invoice with the words 'self-billing'.
A supplier is deemed to have issued an invoice under these arrangements when they accept it.
Self-billing and suppliers
If you enter into a self-billing arrangement with your customer, you are liable for the VAT. You must be registered for VAT and account for the VAT to Revenue. If you issue an invoice including VAT while not registered for VAT, you are liable to pay that VAT. This is also the case where the invoice is prepared on your behalf. In addition, you may be liable to a fixed penalty of €4,000.