Introduction of invoice system under the Consumption Tax Law
- 2023.09.20
- egistration number of the invoice issuing business, input VAT, International Tax, japanese invoice system, output vat, Qualified Invoice Issuer, refund of input consumption tax, 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 […]