What is Japan's Qualified Invoice System?
Japan's Qualified Invoice System is the consumption tax rule, in force since 1 October 2023, under which a buyer can deduct input tax only on invoices from registered qualified invoice issuers. Registered sellers show a registration number, the letter T followed by 13 digits, along with tax rates and tax amounts by rate on each qualified invoice.
Also calledQISInvoice Seidoqualified invoiceT number
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- In force since
- 1 October 2023
- Registration number
- T plus 13 digits
- Tax rates
- 10% standard, 8% reduced
How the Qualified Invoice System works
Businesses that want their customers to be able to reclaim consumption tax register with the National Tax Agency as qualified invoice issuers; registered numbers can be checked on the agency's public site. A qualified invoice must show the issuer's name and registration number, the transaction date and details, amounts by tax rate, the 10% standard and 8% reduced rates applied, and the tax by rate. Buyers check suppliers' numbers before claiming credits; purchases from unregistered suppliers, such as small tax-exempt businesses, get only partial credit under transitional relief that is being phased down. The system is not an e-invoicing mandate, but qualified invoices can be sent electronically, and Japan has adopted the Peppol-based JP PINT format for them. Avalara is a Peppol service provider in Japan for qualified e-invoices.
Common questions
What is a T number in Japan?+
The registration number of a qualified invoice issuer: the letter T followed by 13 digits, which for companies is their corporate number. Buyers can check it on the National Tax Agency's public register.
Is the Qualified Invoice System an e-invoicing mandate?+
No. Qualified invoices can be on paper or electronic. Electronic qualified invoices can use JP PINT, Japan's Peppol format, but businesses are not required to use it.
Can buyers deduct input tax on invoices from unregistered suppliers?+
Only partially, under transitional relief that is being reduced over time. Full credit requires a qualified invoice from a registered issuer.
Software for Japan qualified invoices
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