From January 2021 onwards, we will need an invoice from you each time we report and pay royalties to you. The easiest way for this to happen, is for EmuBands to prepare these invoices on your behalf. In order to do this, however, we need your permission, and you grant us this permission through what is known as a Self-Billing Agreement.
A Self-Billing Agreement is a simple and straightforward agreement that grants us permission to prepare these invoices on your behalf (“Self-Billing Invoices”), and each Self-Billing Agreement will last for one year. At the end of each agreement period, you will be prompted to review your details and create a new agreement, but you can also amend your details and create a new agreement at any point during the year should your circumstances change (for example, if you register or de-register for VAT).
There are two types of Self-Billing Agreement – one if you are in the UK and are registered for VAT, and one for everyone else. This is because if you are in the UK and are registered for VAT, the type of Self-Billing Agreement you sign is slightly different, and we need to check and approve your VAT details before payments can be made to you.
VAT can be a complex and confusing area of tax, and should you require any specialist advice relating to your circumstances we are happy to recommend (to UK residents) The VAT Helpline Ltd (https://thevathelpline.com).
Disclaimer: This information is true as at and from 1st January 2021 onwards. Do not take any advice given here as official legal, tax or accountancy advice. Always consult a qualified expert in your own tax jurisdiction for proper advice.