The consumption tax rate has been raised to 10%, and we are now accustomed to both 8% and 10% consumption tax rates being applied, but the invoice system is a new system related to this consumption tax reform. In this article, we will explain the outline of the invoice system and the specific steps to take in response to the new system.

There may be various procedures that need to be completed, so we recommend that you start preparing as early as possible.

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The impact on tax-free businesses is also significant

The invoice systemSystem for taxable personsHowever, the impact on duty-free businesses will also be significant.
If your business partner is a taxable business, you will be required to issue a qualified invoice in order to receive input tax credit.
If you neglect to register as an issuing business because you want to remain a tax-exempt business, you will not be able to issue qualified invoices.
It is easy to predict that if you are unable to issue qualified invoices, your customers will avoid doing business with you or even change their business partners.
Until now, many businesses that were tax-exempt have not been required to pay consumption tax, and therefore record their sales amounts including consumption tax.
When you register as an invoice issuing business to comply with the invoice system, you become a taxable business from that point on.You need to declare and pay 8% or 10% consumption tax.there is.
A decline in sales is inevitable and in some cases it can be a matter of life and death.
In order to avoid panicking in October 2023, it will be necessary to take measures now to determine the impact it will have if you become an issuer and a consumption tax taxable business.

summary

The introduction of the invoice system is not simply a matter of changing the information written on invoices.
This system will particularly force tax-exempt businesses to change to taxable businesses.
In addition to the registration procedures, you should also consult with a tax accountant or other professional now about how becoming a taxable business will affect your income.

The National Tax Agency's website also has detailed brochures, and web seminars on the agency's invoice system are uploaded to YouTube, so be sure to make use of them.

Overview of the invoice system (National Tax Agency website)
https://www.nta.go.jp/taxes/shiraberu/zeimokubetsu/shohi/keigenzeiritsu/invoice_about.htm