Self-Billing of Invoices
A self billing arrangement is a formal agreement between a customer and a supplier, where a VAT registered customer takes the responsibility to issue a tax invoice themselves on behalf of their supplier(vendor). Article 59(9) of the Executive Regulations allows self-billed tax invoices to be issued by a taxable customer on behalf of the supplier in relation to a taxable supply made to the customer, provided the following conditions are met:
. The Recipient (customer) of the Goods or Services is registered for VAT;
. The supplier and the customer agree in writing that the supplier shall not issue a Tax Invoice in respect of that supply;.
. The tax invoice shall contain the same details as required for a normal tax invoice together with the words “tax Invoice raised by the buyer” clearly displayed on it.
. The words “Tax Invoice raised by buyer” are clearly displayed on the Tax Invoice.
The tax mentioned in the self billed invoices will be the output VAT of the supplier and the input VAT of the self biller.Where a self-billed tax Invoice is issued by the customer in agreement with the supplier, any invoice issued by the supplier in respect of that supply will be deemed not to be a tax invoice.
Self billing is generally done in scenarios where the value of goods or services in question, is determined by the customer once it has been delivered to him. For example - royalties, scrap metal.
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