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HMRC internal manual

VAT Time of supply

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HM Revenue & Customs
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Legislation: UK primary law (VAT Act 1994): Paragraphs 2B(3) and (4) of schedule 11 Self-billed invoices

Law

(3) For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier.

(4) For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier. .

In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier.

Commentary

Paragraph 2B(3) and (4) defines the extent to which a self-billed invoice (that is an invoice issued by the customer), may nevertheless be treated as issued by the supplier for time of supply purposes. This is significant where the issue of a VAT invoice (by the supplier) can create a tax point. So, under 2B(3), a self-billed invoice issued in advance of a basic tax point is not treated as issued by the supplier and so does not create a tax point.

On the other hand, paragraph 2B(4) treats the invoice as having been issued by the supplier for the purposes of the 14 day rule (section 6(5) of the Act - see VATTOS2230) or any longer period where this has been allowed under section 6(6) of the Act - see VATTOS2235. Similarly, the customer can be regarded as the supplier for the purposes of opting out of the effects of the 14 day rule or in requesting an extension to the 14 day period.

Similar provision is made for tax points created under secondary legist ion by regulation 13(3F) of the VAT Regulations 1995 (see VATTOS2310).

For further information about self-billing and time of supply see VATTOS5225 and for self-billing more generally see the manual covering records.