Country-specific updates: Japan

Japan will introduce the invoice system from 1 November 2023. The National Tax Agency recently updated its Questions and Answers (Q&A), which would help taxpayers' registration process. Below is an overview of the invoice system.

Currently, a VAT invoice is not necessary for the Japanese Consumption Tax purposes, and a taxpayer calculates the creditable input tax amount from the company records, rather than from VAT invoices. However, in connection with the multiple rate system recently introduced, the invoice system will be introduced from 1 November 2023, under which only the registered Consumption Tax business operators can issue the qualified tax invoices that are necessary for the recipient of the goods and services to credit the input tax.

The registered Consumption Tax business operator may issue electronic invoices instead of paper-based invoices provided that certain conditions are met.

A business that wishes to register as a registered Consumption Tax business operator must submit the registration form to the head of the local tax office. The business can submit the registration form as from 1 October 2021, and the names and the ID numbers of the registered operators will be publicly announced at the NTA's website.