Allows Qualified Invoice registration after March 2023
Our previous blog has talked about the upcoming consumption tax reform in Japan, where businesses are required to provide a “qualified invoice” to claim input tax credits. The “Qualified Invoice system” will follow the PEPPOL PINT standards and is to be implemented in October 2023. To be eligible to issue a "qualified invoice," vendors must register with their local tax office by March 2023. The government recently announced that registration applications after this date will also be accepted, this is to ease the time burden on the taxpayers. Rather than being a mandate, this reform is a recommendation from the Japan Digital Agency (JDA). The new invoice system will, however, affect all Japanese businesses who wish to claim input tax.