1. Purpose
This Agreement sets out the terms under which the Contractor will issue VAT invoices to itself (self-billing)
on behalf of the Subcontractor for supplies of services made by the Subcontractor to the Contractor, in
accordance with HMRC VAT self-billing rules.
2. Scope of Services
This Agreement applies to all taxable supplies of services provided by the Subcontractor to the Contractor under
any contract, purchase order, or instruction issued from time to time.
3. Self-Billing Arrangement
3.1 The Contractor will issue self-billing invoices for all services supplied by the Subcontractor that fall within the scope of this Agreement.
3.2 The Subcontractor shall not issue VAT invoices to the Contractor for supplies covered by this Agreement.
3.3 Each self-billing invoice will include all information required by VAT legislation, including:
- A unique invoice number
- The date of issue
- The Contractor’s name, address, and VAT number
- The Subcontractor’s name, address, and VAT number
- A description of the services supplied
- The net amount payable
- The VAT rate applied and the amount of VAT charged
- The statement: “VAT invoice raised by the customer under a self-billing arrangement”
4. VAT Status and Obligations
4.1 The Subcontractor confirms that it is registered for VAT and will notify the Contractor immediately if:
- Its VAT registration number changes, or
- It ceases to be VAT registered.
4.2 The Contractor agrees to:
- Verify the Subcontractor’s VAT registration before issuing self-billing invoices
- Keep appropriate records of all self-billing invoices
- Account for VAT correctly under UK VAT legislation
4.3 If the Subcontractor ceases to be VAT registered, this Agreement shall terminate immediately.
5. Payments
5.1 Payment will be made in accordance with the payment terms previously agreed between the Parties.
5.2 Payment of self-billed invoices will be made by bank transfer to the Subcontractor’s nominated bank account.
6. Duration and Termination
6.1 This Agreement shall commence on 1st January 2026 and will remain in force until terminated.
6.2 Either party may terminate this Agreement by giving not less than 30 days’ written notice.
6.3 Upon termination, the Subcontractor must resume issuing VAT invoices for any further supplies made.
7. Record Keeping
Both Parties agree to retain copies of this Agreement and all self-billing invoices for a minimum of six (6) years,
in line with HMRC requirements.
8. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of England and Wales.
9. Entire Agreement
This Agreement constitutes the entire agreement between the Parties in relation to self-billing and supersedes any
prior arrangements or understandings.
