Self Billing Agreement

[solarsavings]

A vat registered customer has been asked by eon to sign this and asked me what it means. I have no idea and would appreciate some help.

Name of Company:
Company VAT number:
By entering into a self-billing agreement with E.ON, you agree to
the following:
 I agree to accept invoices raised by E.ON on my behalf in
respect of any FIT Tariff Payments received.
 I agree not to raise sales invoices for any FIT Tariff Payments
received.
 I agree to notify E.ON immediately if I change my VAT
registration number or stop being VAT registered.
Signature: Date:
Print Name:
Position in Company:

 

[TedM]

The export element of the FiT is VATable for a VAT registered business, so E.ON will pay the 4p (or whatever) standard export rate plus VAT. The recipient will have to hand that over to HMRC via their VAT return.

 

[solarsavings]

Thank you Ted you're a star

 

[solarsavings]

Ted, this concerns a village hall installation and the clerk is saying while they claim vat back they do not charge it for renting out the hall etc. Would they still need to sign/charge vat to eon?

 

[TedM]

Yes, the electricity they are selling to E.ON, via export, is VATable. Whether or not they charge VAT on any other business activity is not really a factor. Just the fact that they are registered for VAT means that they, and E.ON, have to account for VAT on the export.

It's covered by HMRC in the second paragraph here: VATSC05224 - Further guidance for identifying supply: supplies of goods for consideration: Feed-in Tariffs: basic arrangements

 

[solarsavings]

Thanks again Ted.