What is self-billing?

Updated on February 8, 2022

Self-billing is when a customer who is registered for Value-Added Tax (VAT) takes charge of issuing their supplier’s VAT invoice. You can make a self-billing invoice if you follow these steps:

There is an agreement with the supplier that you can draw up and send the invoice to them.

You meet all of the requirements for the content of and the way the invoice is made.

You and the supplier have agreed on how the supplier will know that the invoice is legitimate.

You sign off on the invoice with the words “self-billing.”

This means that when a supplier accepts an invoice under these rules, it is considered to have been sent.

Charging VAT

Adding VAT to things
Information about how to charge VAT, mixed goods, vouchers, deposits, and bad debts.

On what amount do you charge VAT?

Most of the time, Value-Added Tax (VAT) will be added to the total sum paid or owed to the person who provided the goods or service. There are a lot of different things:

taxes \scommissions \scosts \scharges.
It doesn’t include the tax that will be charged on the sale.

The following are examples of when this is true:

Giving or getting goods or services, getting services from outside the EU, and getting goods from other EU Member States.
Value added tax (VAT) is charged on the Customs value of goods when they come into the country.

This means that VAT is charged on more than just the cost of the goods or services. It also includes extra costs that the supplier has to pay that are passed on to the customer.

Example
A consultant’s fee for a service might include costs and expenses like this:

Calculation of VAT that must be paid
Description
Amount
It costs €4,000 for a professional to do work for you.
Allowance for travel and food costs is €2,000.
Hotel rooms cost about $800.
The cost of postage and stationery is about €100.
Photocopying €50
Total €6,850
VAT is charged on the amount of money that costs €6.850. VAT at 23% costs €1,575.50.
The total cost to the customer is €8,425.50.

In that case, what will happen?
Credit card payments are taxed at the full amount charged to the customer. Credit card companies withhold money from the settlements they make with the businesses they work with. This money is part of the amount that is taxed.

When you don’t pay with money.
When you buy or use something, you can think about it in a number of ways. Examples of this are cash and payments in kind, as well. Payments in kind can be:

The exchange of goods or services as payment for the release of an individual from a duty
VAT is charged on the value of goods or services that are paid for with money from customers. This is called the open market or arm’s length value.

VAT rates

V.A.T. rates
Information about the rates of VAT and a way to look up the prices of different goods and services with the help of a search tool.

Search VAT rates

Overview

Many goods and services are listed in the Value-Added Tax (VAT) rates database. You can look at them, use the A to Z links, or search for them using the search box.

There is a list of the VAT rates in the database that show what people are doing right now. Each time new information comes out, we make sure the information is up to date.

If you want to know more about the law, you should read the law.

When goods and services are taxed, the Value-Added Tax Consolidation Act of 2010 is the law that says how they are taxed.