Mandatory Electronic Invoicing in Japan
Learn how to get your company ready to exchange documents in accordance with regulations in Japan with the support of Comarch
Learn how to get your company ready to exchange documents in accordance with regulations in Japan with the support of Comarch
The e-invoicing system in Japan will be based on the PEPPOL standard, which is an interoperable standard. Rules for the Japanese standard have been discussed since 2021, since when EIPA and the Japanese government have been working with OpenPEPPOL. In Japan, PINT will be used. This is the international version of PEPPOL, based on BIS Billing 3.0. This means that PEPPOL access point companies will play a key role in the new system. Of course, in addition to them, two significant players will participate in this configuration. These are companies and government agencies.
With the entry into force of the Qualified Invoice Method System, only registered economic operators will be able to issue a qualified invoice, and only the possession of such an invoice will entitle the holder to deduct the CT charged on purchases. So, based on the rules applicable under the new system, the JCT taxpayer will be required to store a qualified invoice issued by a registered invoice issuer in order to be able to apply for an input credit.
B2G and B2B electronic invoicing is not mandatory in Japan. However, taxpayers may use solutions based on PEPPOL and issue electronic invoices. The PEPPOL – PINT format meets the requirements of QIMS, therefore EIPA encourages the exchange of invoices in this form.
The Japanese government intends to introduce the Qualified Invoice based Method as of 1 October 2023, to organize the rules for issuing invoices and the information that must be included on them.
It's planned to implement the Qualified Invoice Method System (QIMS), which will come into force on October 1, 2023, and will operate similarly to the well-known VAT system in Europe. Under this system, it will be necessary to issue invoices (whether in paper or electronic form), which contain specific information (the issuer's tax ID, the recipient, the date of issue, item, amount and JCT value) and then store them. To be able to issue such a qualified invoice, taxpayers must register with the Japanese National Tax Authority (NTA) to receive an individual tax ID. The deadline to register has been extended to September 30, 2023, although it was originally scheduled to end in March 2023.
The required storage period is 10 years.
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.
