Electronic invoicing guide
Japan
Digital reporting requirements
Post-Audit.
Obligatory
E-invoicing is voluntary, however, all invoices must comply with the Qualified Invoice Method (QIMS), to streamline the rules for issuing invoices and the information that must be included:
- Name and the tax ID number of JCT Invoice issuer.
- Date of invoice.
- Details of invoice items (especially for reduced tax rate).
- Invoiced amount with the applicable tax rate.
- Consumption tax amount with applicable tax rate.
- Customer’s name.
The PEPPOL–PINT format meets the requirements of QIMS. Therefore, EIPA encourages the exchange of invoices in this form.
Authority
National Tax Agency & Digital Agency.
Platform
Information not available.
Format
Issuing and receving e-invocies is allowed thanks to the PEPPOL network. JP PINT is a standard specification for digital invoices exchanged over the PEPPOL network in Japan.
Storage time
10 years.
All received electronic documents, including downloading from the cloud or receiving via e-mail, must archive it electronically instead of printing it and storing it in paper form.
Businesses can apply timestamps on the sending and receiving documents, have a proper system or create an internal process to ensure documents cannot be edited or deleted. It is also possible to use a system that can keep logs of editing and deleting traceable.
These documents archived electronically must provide human readability, and the archiving systems must enable search function by transaction data, such as transaction date, amount, and counterparties.
Reporting and processes
Processes
With the entry into force of the Qualified Invoice Method System, only registered economic operators are able to issue a qualified invoice, and only the possession of such an invoice entitles the holder to deduct the CT charged on purchases.
For a company to send a qualified invoice, it is necessary to be registered with the Tax Authority and obtain the JCT code (14 digits).
The JCT taxpayer is required to store a qualified invoice issued by a registered invoice issuer to be able to apply for an input credit.
Upcoming legislative changes
For the time being, no legislative changes are foreseen.
Links of Interest and documents
Links of interest
eipa.jp
nta.go.jp
Documents
Taxable invoices.
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