Qualified invoice system

JP tax authority started new Consumption Tax (=CT) system from Oct 1, 2023.

The new system require CT payer to retain “Qualified Invoices” in order to claim “input CT credits”. Generally speaking, CT payment due is calculated by CT on sales (=output CT) minus CT on cost/expenses (=input CT)

CT payers request their vendors to issue “Qualified Invoice”. The vendors must file a very simple application to tax office to become “Qualified Invoice Issuer”. Tax office issue “Qualified Invoice Issuer Number”. The “Qualified Invoice” must contain “Qualified Invoice Issuer Number”