Introduction of invoice system under the Consumption Tax Law
- 2023.09.20
- Non-residents of Japan, Qualified invoices Description, qualified invoicing business, Special exception for obtaining a registration number
1. Introduction of the invoice system = Becoming a qualified invoicing business The invoice system will be introduced in the Consumption Tax Law (=VAT Law) from October 2023. The consumption tax rate in Japan is 10%. A reduced consumption tax rate of 8% will be applied to “food and beverages excluding alcoholic beverages and restaurant food” and “newspapers published more than twice a week with a subscription agreement. In principle, a person who wishes to receive a refund of input consumption tax (=input VAT) on a transaction must obtain a registration number from the tax office by the end of September 2023. Registered businesses are entitled to input consumption tax (=input VAT) refunds, but must also file output consumption tax (=output VAT) returns on a regular basis. 2. Transitional measures There are also transitional measures: those who do not obtain a registration number by the end of September 2023, 1) For the first 3 years (October 1, 2023 to September 30, 2026)80% of input consumption tax (=input VAT) can be deducted. 2) For the next 3 years (October 1, 2026 – September 30, 2029)50% of Input Consumption Tax (=input VAT) can be deducted. 3) After that date (from October 1, […]