Japan started the New Qualified Invoice System - Effective From 1 October 2023. We explain its requirements and best practices in detail for you to understand about this new system.
Japan has implemented a Qualified Invoice System for claiming input consumption tax credits.
It requires businesses to register as a so-called Qualified Invoice Issuer (‘QII’) to be allowed to issue Qualified Invoices.
A Taxpayer, i.e., a foreign or domestic business filing consumption tax returns in Japan, is required to receive and retain a Qualified Invoice for claiming input consumption tax credits in a purchase transaction.
A key point of the new invoice system is that any business registered as a QII in Japan will assume the Taxpayer status and will thus be obligated to file a consumption tax return, even if the business had been exempted before, related to the special rules for small and medium-sized enterprises.
Juergen Dumont, the Partner in Outsourcing explains the details covering following topic:
- Key aspects of the new Qualified Invoice System – effective from 1 October 2023
- The new Qualified Invoice System: Points of attention
- From the viewpoint of the Seller
- From the viewpoint of the Buyer
- The Qualified Invoice – Key requirements, simplifications and exemptions
- Form and content requirements
- Simplifications and exempt transactions
- Claiming input tax credits and practical aspects
- Transitional measures for transactions without a qualified invoice
- Accounting treatment of non-creditable input tax
- Updating the tax codes in the accounting system
- How to calculate consumption tax under the new invoice system
- Simplified calculation of consumption tax liability for SMEs and NewCos
- Special 20% rule as a transitional measure
- General simplification rule by type of industry
- Other topics
- Transitional rules for services billed before 1 October 2023
- The new electronic invoicing standard JP-PINT
Please download today to explore further details.
Should you want to know more details and obtain the full report, please feel free to contact Juergen Dumont on (email@example.com).