Japan
Provinces
General
Provinces
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About
General
About
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General
General
Regulated under the Qualified Invoice Issuing System (QIIS). Aligns with Japan’s consumption tax requirements and international e-invoicing standards.
Implementation Timeline
| Date | Requirement | Details |
| Oct 1, 2023 | Introduction of Qualified Invoice System | Businesses began issuing qualified invoices to comply with Japan’s new consumption tax credit system, ensuring accurate input tax credits for recipients |
| 2025(Planned) | Further Expansion | Additional requirements and refinements to the QIIS are expected as Japan continues its transition to digital invoicing for all taxable transactions |
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.
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 in Japan
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.
- Not mandatory but encouraged for transparency and internal efficiencies.
- 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.
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