Qualified Invoice System in Japan

The Qualified Invoice System is a new invoice system for Japanese Consumption Tax (JCT). This will require taxpayers to retain qualified invoices that fulfil certain conditions in order for them to claim input JCT credits, while requiring sellers to issue such qualified invoices. Under the new method, e-invoicing is not mandated, but it is a recommended format by the JDA. 

All businesses in Japan who wish to claim JCT are affected by the new invoice system. 

Yes, On 5 August, the Digital Agency of Japan authorized Pagero to offer services to international and domestic businesses operating in the country. 

Becoming the Peppol Authority demonstrates that the Japanese government are serious about digitalisation and see value in the Peppol Network. Furthermore, it means that it is likely that Peppol and its standardised documents will be used and promoted by the government. As anticipated by the Agency, an introduction of e-invoices will lead to efficiency improvement of back-office business operations and allow the Agency to develop standard invoice specifications based on the global standards used for public-private cooperation. 

Archiving hard copies is common in Japan; however, from January 2024, it is no more allowed for certain documents, such as contracts, orders, invoices, receipts, and other similar documents sent or received electronically. According to the ERRL, taxpayers, including SMEs and sole proprietors, must store their electronic trading documents in an electronic format. In other words, once businesses receive an e-document, including downloading from the cloud or receiving via e-mail, they must archive it electronically instead of printing it and storing it in paper form. 

These standards listed below were based on the Peppol International (PINT) model: 

1) Peppol BIS Standard Invoice JP PINT Version 1.01 that is compliant with the Peppol International (PINT) model for Billing; 

2) JP BIS Self Billing Invoice Version 1.0 is mainly identical to Peppol BIS Standard Invoice JP PINT Version 1.01, which is compliant with the Peppol International (PINT) model for Billing; 

3) JP BIS Invoice for Non-tax Registered Businesses Version 1.0 compliant with the Peppol International (PINT) model for Billing.