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Self-Billing Invoice Template

Self-billing is when the customer, not the supplier, raises the invoice for a supply, usually because the customer knows the value first: a delivery firm paying owner-drivers from its own drop data, a packhouse paying growers by graded weight, a platform paying sellers from its sales report. It is only valid inside a self-billing agreement made before the first self-bill, and in the UK and EU most of the risk sits in that agreement rather than in the invoice layout. This page covers the agreement itself: what HMRC says it must contain, how long it runs, the 12-month review, what happens when the supplier deregisters, changes VAT number or sells the business, and how each invoice is issued and accepted. The download is an editable HTML self-billed invoice laid out for the customer as issuer: customer and supplier, the agreement reference and period, the supplier's VAT number, an invoice number from a separate series for that supplier, the invoice date and tax point, a line table and VAT totals. It is not created or stored by InvoiceQuickly. Fill it in your browser, then print it or save it as PDF. For the difference between a reverse invoice and the reverse charge, see the reverse invoice template.

Preview this editable document

Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.

What This Template Includes

  • SELF-BILLING reference on every invoice
  • Statement: "The VAT shown is your output tax due to HMRC" (UK)
  • Supplier's address and the customer's address
  • Agreement start date, expiry date and next review date
  • How the value was worked out (sales report, intake or delivery data)
  • Supplier's acceptance or query period under the agreement
  • Payment date and remittance reference

How to fill in this Self-Billing Invoice

  1. Download the template. It opens as an editable HTML file in your browser.
  2. Replace each bracketed field with your details. Totals are not calculated for you, so check the arithmetic.
  3. Print it or save it as a PDF from your browser. InvoiceQuickly does not create or store this document type.

Recommended Payment Terms

Self-billed invoices usually travel with the payment: the customer works out the value, issues the invoice and pays it on the cycle set in the agreement, such as weekly for owner-drivers or monthly for royalties. Because the supplier never sends a bill, the agreement should state the payment cycle, how the supplier receives each self-bill and remittance, and how long the supplier has to query a self-bill before it counts as accepted, since the EU VAT Directive allows self-billing only where a procedure exists for the supplier to accept each invoice. If the value later changes, HMRC says the customer should not net the difference off a later self-bill; it issues a debit note for the change instead.

Tax Information

United Kingdom (HMRC VAT Notice 700/62): no HMRC approval is needed, but a customer may self-bill only suppliers that have signed a written self-billing agreement, made before self-billing starts. The agreement must record the supplier's consent to the customer raising its invoices, the supplier's promise not to issue its own VAT invoices for those supplies and to accept each self-bill, start and expiry dates, the supplier's promise to say if it deregisters, sells the business as a going concern or gets a new VAT number, and any third party, such as a bureau, that will issue the self-bills. HMRC advises reviewing agreements every 12 months, and an agreement for less than 12 months does not normally need a review. The customer must not self-bill a supplier that is not VAT registered, or one that has changed its VAT number, until a new agreement is signed. Each self-bill needs every detail of a full VAT invoice (including the VAT rate per line and the VAT total in sterling) plus the reference 'SELF-BILLING', which has the force of law; HMRC also advises the line 'The VAT shown is your output tax due to HMRC'. Without a valid agreement, the self-bills are not evidence for the customer's input tax claim. European Union: Article 224 of the VAT Directive (2006/112/EC) allows customer-drawn invoices where there is a prior agreement and a procedure for the supplier to accept each invoice, and member states set the detail, so check the national tax authority. InvoiceQuickly copies saved business and client tax IDs to new invoice PDFs and has no self-billing mode. General information, not tax advice.

Industry context (2026)

Self-billing rules in the UK come from section 29 of the VAT Act 1994 and regulation 13 of the VAT Regulations 1995, explained in HMRC's VAT Notice 700/62 (Self-billing). HMRC lists the advantages as uniform purchase paperwork and easier invoicing when the customer sets the value after delivery, and the points to watch as the work of setting up and maintaining agreements and the customer's responsibility for applying the right VAT. It publishes a one-page example agreement that businesses may reproduce or adapt. In the EU, Article 224 of Council Directive 2006/112/EC permits invoices drawn up by the customer only under a prior agreement with a procedure for the supplier's acceptance of each invoice, Article 226 requires the mention 'Self-billing', and member states may add conditions. Sources checked on 28 October 2026.

Worked example

Worked example (hypothetical businesses and rates): Northway Logistics Ltd pays owner-drivers from its own delivery data, so it self-bills them. Sam Okafor, a VAT-registered sole trader, signs self-billing agreement SBA-014 on 28 March 2026. It runs from 1 April 2026 to 31 March 2027, records Sam's consent, his promise not to issue his own invoices for Northway work and to tell Northway at once about any change to his VAT registration, and gives him 7 days to query each self-bill, after which it counts as accepted. Northway checks his VAT number and adds him to its supplier list with a review date of March 2027. For the week ending 18 October 2026, Northway issues self-bill SO-0031 on 20 October, within 14 days of the work, so under HMRC's rules the invoice date is the tax point. It is marked SELF-BILLING and carries 'The VAT shown is your output tax due to HMRC'. Lines: 142 parcel drops × £2.40 = £340.80; 6 two-person heavy drops × £12.50 = £75.00; 410 miles × £0.55 = £225.50, each at 20% VAT. Net £641.30, VAT £128.26, total £769.56, paid by bank transfer on 23 October with reference SO-0031. Sam records £128.26 as output tax. On 1 December 2026 Sam moves his business into Okafor Couriers Ltd, which gets a new VAT number. Northway stops self-billing him from that date and signs a new agreement with the company before the next self-bill; for any week in between, the company invoices Northway itself.

Common mistakes to avoid

Self-billing before the agreement is signed

Invoices raised before the written agreement exists are not valid self-bills, and the customer cannot rely on them for its input tax claim. Sign first, then issue.

Letting the agreement expire

An agreement with a fixed end date stops covering self-bills on that date. Track expiry and review dates for every supplier, and renew before the next self-bill.

Missing a VAT registration change

A supplier who deregisters, incorporates or sells the business usually ends up with no VAT number or a new one. Self-bills issued after that are wrong; a new agreement is needed first.

Leaving off 'SELF-BILLING'

In the UK the reference is a legal requirement, not a courtesy. Without it the document is not a proper self-billed invoice.

Both sides invoicing

A supplier who also sends its own invoice for the same supply creates a duplicate, and the customer must not claim input tax on it. The agreement should make clear that only the customer invoices.

Invoicing Tips

  • 1Use HMRC's example agreement in VAT Notice 700/62 as a checklist even if you write your own: consent, no own invoices, acceptance, start and expiry dates, change notifications and any third-party issuer.
  • 2Keep a list of every supplier you self-bill with their name, address, VAT number and agreement expiry date. HMRC can ask to see it, and it is the easiest way to spot an agreement about to lapse.
  • 3Check each new supplier's VAT number with HMRC's Check a VAT number service before the first self-bill, and again at each review.
  • 4Number each supplier's self-bills in their own series (for example SO-0031 for one driver) so the supplier's VAT records show an unbroken sequence from you.
  • 5If you sign many agreements on the same day, HMRC suggests staggering the reviews over 6 to 12 months. Set the expiry dates to match when you sign.
  • 6Suppliers: record the VAT on a self-bill as output tax on your sales side. Treating it as input tax because the document came from a customer is a common error.

Related Resources

Frequently Asked Questions

What is a self-billing agreement?

A written agreement, on paper or electronic, in which a supplier lets its customer raise the supplier's invoices. Under HMRC's rules it must record the supplier's consent, its promise not to issue its own invoices for those supplies and to accept each self-bill, start and expiry dates, and its promise to report changes to its VAT registration. It must be in place before the first self-bill.

How often must a self-billing agreement be reviewed?

HMRC advises a review every 12 months, to confirm the supplier is still VAT registered and still agrees. An agreement that runs for less than 12 months does not normally need a review, and one written into a supply contract runs until the contract ends. You must not self-bill at any time without a current written agreement.

What happens if the supplier changes its VAT number or deregisters?

Stop self-billing. HMRC says you must not issue self-billed VAT invoices for a supplier that is not registered or has cancelled its registration, or for one that has changed its VAT number until a new agreement is signed. If the supplier sells its business as a going concern, a new agreement with the buyer is needed to carry on.

Can a supplier refuse self-billing?

Yes. HMRC will not insist that a supplier agrees, although a customer may make self-billing a condition of doing business. A supplier that cannot meet the conditions must tell the customer and issue its own invoices instead.

What must a self-billed invoice show?

In the UK, every detail of a full VAT invoice, including the supplier's name, address and VAT number, the customer's name and address, a sequential number, the tax point, descriptions, quantities, unit prices, the VAT rate per line and the VAT total in sterling, plus the reference 'SELF-BILLING'. HMRC advises adding 'The VAT shown is your output tax due to HMRC'. EU countries require the mention 'Self-billing'.

How do you correct a self-billed invoice?

Do not reduce a later self-bill to make up the difference. HMRC says the customer should issue a debit note for the amount by which the value of the supply changed, so both sides' VAT records show the correction.

Can InvoiceQuickly issue self-billed invoices?

No. InvoiceQuickly issues invoices as the seller and has no self-billing mode, so this page offers the editable download only. If you are a supplier under a self-billing agreement, do not raise your own invoices for the supplies it covers, in InvoiceQuickly or anywhere else.