What is Japan's Qualified Invoice System?
Effective: 2023-10-01 · Authority: NTA (National Tax Agency)
Japan's Qualified Invoice System (Tekikaku Seikyusho Hozon Hoshiki) became mandatory in October 2023. Under this system, businesses can only claim consumption tax (JCT) input tax credits on purchases supported by qualified invoices issued by registered suppliers. Suppliers must register with the NTA to issue qualified invoices.
How do Japanese suppliers register for the Qualified Invoice System?
Suppliers apply to the NTA for registration as a Qualified Invoice Issuer. Upon approval, they receive a Qualified Invoice Issuer Registration Number (T followed by 13 digits) which must appear on all qualified invoices. The NTA publishes a searchable public registry of all registered issuers.
Frequently Asked Questions
- What must appear on a Japanese qualified invoice?
- Qualified invoices must include: supplier name and registration number (T + 13 digits), invoice date, buyer name, supply description, consumption tax amount by rate (10 percent standard, 8 percent reduced for food), and total amount by tax rate. Reduced-rate items must be clearly identified.
- Can unregistered suppliers issue qualified invoices?
- No. Only NTA-registered Qualified Invoice Issuers can issue qualified invoices. Unregistered businesses (including those below the JPY 10 million consumption tax threshold who were previously exempt) cannot issue qualified invoices, and their buyers cannot claim input tax credits on purchases from them.
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