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About

General

About

General

Regulated under the Qualified Invoice Issuing System (QIIS). Aligns with Japan’s consumption tax requirements and international e-invoicing standards.

Implementation of mandatory e-invoicing in Japan

Japan introduced a new invoicing system to align with international standards and improve tax transparency:

In October 2023, the Qualified Invoicing System was launched. Only registered businesses can issue qualified invoices, which are required to claim input VAT deductions.
While e-invoicing is not yet fully mandatory, Japan has adopted the Peppol format as its national standard. The Japan Peppol Authority oversees compliance and network use.
A voluntary phase is ongoing, with broader adoption expected through 2026, especially for B2B transactions and public procurement.

Who needs e-invoices in Japan?

Registered Businesses: Must issue qualified invoices under QIIS to enable recipients to claim consumption tax credits.
Exporters: Required for cross-border transactions to ensure accurate tax reporting.
Non-Resident Businesses: Must comply with QIIS if registered for consumption tax purposes in Japan.

Ready to simplify e-invoicing and scale with confidence? Request a fee quote and discover a personalized solution that adapts to your workflow, supports PEPPOL and national systems, and grows with your business.

E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	Tax compliance under QIIS	Informal or customerfocused transactions
Purpose	Via certified systems	Not validated
Archiving	Required for 7 years	Optional

Key features of Japan’s e-invoicing system

Japan’s e-invoicing system involves:

Submission via Certified Systems: Invoices must adhere to QIIS standards.
Validation: Ensures compliance with consumption tax regulations.
Archiving: Digital storage required for 7 years under Japanese tax laws.

E-invoicing dataset

E-invoices in Japan include the following critical data:

Issuer/Recipient IDs: Registration numbers under QIIS.
Invoice Details: Invoice number, issue date, and payment terms.
Goods and Services: Line-item descriptions, quantities, unit prices, and subtotals.
Taxes: Applicable consumption tax rates and amounts.
Transaction Info: Total payable amount, currency, and payment method.
Digital Signature: Ensures authenticity and integrity of the invoice.

E-invoicing across transaction types

B2B Transactions:

Mandatory to ensure compliance with consumption tax regulations.
Facilitates accurate tax credit claims, streamlines recordkeeping, and audits.

B2C Transactions

Not mandatory but encouraged for transparency and internal efficiencies.

B2G Transactions:

Expected to align with international e-invoicing standards, ensuring compliance and transparency.

Penalties for non-compliance in Japan

Non-compliance with Japan’s e-invoicing regulations may result in:

Fines: Monetary penalties for non-compliance.
Loss of Tax Credits: Non-compliant invoices may result in ineligibility for tax credits.
Legal Risks: Repeated violations may lead to audits and reputational damage.

Stay ahead of the e-invoicing regulations with our easy-to-use platform. Book a free demo today and see how we can help you streamline your invoicing process while ensuring full compliance with Japan's e-invoicing laws.

April 15, 2025 226