VAT self-billing agreement form - signature needed?

Discussion in 'Accounts & Finance' started by neilsolaris, Jul 25, 2021.

  1. neilsolaris

    neilsolaris Contributor

    206 10
    Hi,

    I do the bookkeeping for a company, and one of my roles is getting the completed VAT self-billing forms back from the VAT registered suppliers once a year (there are about 40 of them).

    What happens is that I send them each an email attachment with their form. Most of them print it off, sign and date it, scan it (or take a photo of it with their phone) and then email it back to me.

    This kind of works ok, except that it's a lot of hassle for them. It's ok for me, I've automated the process with VBA.

    I was wondering, is there an easier way of processing this, that perhaps wouldn't require a signature from them? Maybe a check box to signify that they agree to the terms? I know when I complete my online tax forms I just click on submit.

    By the way, I use Microsoft forms for collecting data from new suppliers. But I don't know whether this would be a viable way of getting VAT agreements.

    Many thanks for any help and suggestions.
     
    Posted: Jul 25, 2021 By: neilsolaris Member since: Apr 30, 2018
    #1
  2. lesvatadvice

    lesvatadvice Contributor

    843 139
    In my opinion, you only require a supplier signature when you commence the self-billing agreement. If they return the information, I would accept that as their agreement without a signature.
    You should include in the original agreement your annual updating of information.
     
    Posted: Jul 26, 2021 By: lesvatadvice Member since: Jul 7, 2011
    #2
  3. neilsolaris

    neilsolaris Contributor

    206 10
    Thanks for that, that's useful. When you say "return the information", what does that entail in practice? You mean, just saying they consent for another year in the email body should suffice?
     
    Posted: Jul 26, 2021 By: neilsolaris Member since: Apr 30, 2018
    #3
  4. neilsolaris

    neilsolaris Contributor

    206 10
    Sorry to come back here, but I just want to make sure I 100% understood the process.

    So next time I send out self-billing agreement forms, I enter an annual update date.

    Then the following year, I email them all their forms, and ask them to email back to confirm that they are happy to remain on the self billing scheme? And I can print off their emails as proof that they have all consented? And that's it, no signature required from this date onwards?

    Thanks!
     
    Posted: Aug 7, 2021 By: neilsolaris Member since: Apr 30, 2018
    #4
  5. Spur Support Services

    Spur Support Services Full Member
    Contributor

    326 68
    In terms of the review period, whilst HMRC are happy for you to build self billing into contracts, or specify longer periods, they do expect you to review each self billing agreement periodically to ensure the requirements are still met and best practice is to perform this review every year.

    If you want to continual annual contract renewals, sign up to Docusign and get electronic signature.
     
    Posted: Aug 9, 2021 By: Spur Support Services Member since: Aug 21, 2020
    #5
  6. neilsolaris

    neilsolaris Contributor

    206 10
    Thanks for that. I was just wondering if reviewing the contracts simply means asking the suppliers if they're still happy to remain on the scheme?

    Docusign sounds like a great solution though. That will definitely be easier for them.
     
    Posted: Aug 9, 2021 By: neilsolaris Member since: Apr 30, 2018
    #6
  7. neilsolaris

    neilsolaris Contributor

    206 10
    It's getting close to me sending out the new self billing agreements, so I just wanted to outline what I'm planning to do. If if looks like I've misunderstood anything please let me know!

    I have to issue new forms this time, because I put an end date of the current forms. However, the forms I'm issuing next will have no end date (although the supplier and I will sign and date it).

    Next year I'll email everyone, attaching the form, and ask them if they are happy to remain on the scheme, and ask them to confirm that the details on the form have not changed.

    Then I'll copy all the email correspondence to a word file and keep as evidence. Also, I'll create a separate email folder and move the correspondence to there as well.

    How does that sound? Many thanks.
     
    Posted: Sep 12, 2021 By: neilsolaris Member since: Apr 30, 2018
    #7
  8. lesvatadvice

    lesvatadvice Contributor

    843 139
    I have double checked the legislation and guidance. There is no requirement to put an end date on a self-billing agreement. So, if shows no end date, it will continue until cancelled by either party.
    You might add this wording: 'This agreement continues until cancelled by either party, or until superseded by a new agreement.'
    I hope that is helpful.
     
    Posted: Sep 15, 2021 at 9:38 AM By: lesvatadvice Member since: Jul 7, 2011
    #8
  9. neilsolaris

    neilsolaris Contributor

    206 10
    Many thanks, that's what I'll do from now on, in order to save them some admin time.

    It's the term "reviewing the agreement at regular intervals" that I was slightly unsure about, but I think getting an email confirmation once a year from the suppliers to confirm that their details remain the same, and that they consent for the agreement to continue, should hopefully fulfil this requirement.

    Many thanks for your help. I feel reassured I'm doing it properly now!
     
    Posted: Sep 15, 2021 at 10:14 AM By: neilsolaris Member since: Apr 30, 2018
    #9
  10. lesvatadvice

    lesvatadvice Contributor

    843 139
    I agree. An annual confirmation is appropriate. Most users of self-billing that I come across do annual checks.
     
    Posted: Sep 15, 2021 at 10:25 AM By: lesvatadvice Member since: Jul 7, 2011
    #10