Vendor registration for "Qualified Invoice Retention System" opens on October 1, 2021
Japanese consumption tax ("JCT") is Japan’s version of a value-added tax (VAT) or sales tax. On 1 October 2023, a new registration-based qualified invoice system for JCT will take effect. This change will greatly impact not only companies conducting their business physically within Japan, but also foreign companies providing digital services to customers in Japan.
On 1 October 2021, the National Tax Agency ("NTA") officially began accepting vendor registrations for the new system. After a registration is accepted, the NTA will publish registered vendor information on its dedicated website (Note: Currently only available in Japanese).
Many companies are now beginning the preparations necessary to be compliant with the new invoice system. This could entail implementation of new or revised internal systems for accounting or the processing of invoices. Companies may often rely on the information published by the NTA in order to verify vendor information, and incorporate such verification procedures into their internal processes. Accordingly, the expectation is that many companies will opt for early registration so that their information is publicly available to business partners. In order for a company to be registered by 1 October 2023, applications should be submitted no later than 31 March 2023.
Webcast
We have prepared a short webcast which highlights some key points of the new invoice system and identifies certain practical issues that may arise. This webcast is a starting point for taxpayers looking to plan their transition to the new invoice system.
Free Webcast - Introduction to the new Japanese consumption tax invoice system.
Available from July 12, 2021 to July 11, 2022
- Overview of qualified invoice system
- New system to the invoice issuing / receiving process
- Required application
Please access the webcast and feel free to contact us if you have any questions on the new Japanese consumption tax invoice system.
For more information, please contact:
Takashi Murakami
Partner - PwC Japan
