Japan 1st October 2023 qualified invoice regime with optional e-invoicing standard – Peppol BIS Billing 3.0 International (‘PINT’)
Japan’s new qualified invoice regime, which underpins the deductibility of Consumption Tax invoices, is being supported by e-invoicing as an option. Japan has adopted the European and global Peppol standard. This is BIS Billing 3.0 or ‘PINT’. Japan’s version of this, ‘JP PINT‘ is the format that will enable Japanese taxpayers to exchange e-invoices via the Peppol (Pan-European Public Procurement Online) network.
2023 introduction of Qualified Invoices replaces current interim Transitional Invoice Retention System
Japan introduced Consumption Tax qualified invoices from 1 October 2023. Check VAT Calc’s global live VAT invoice transaction and e-invoice reporting tracker to see where else real-time submissions of invoices is being implemented.
Current tax books instead of VAT invoices
Japan had not operated the concept of a Consumption Tax (its version of VAT) invoice, used as proof of a VAT liability and right to deduction. Instead, taxpayers had to maintain prescribed tax books. A VAT invoice was not necessary for the Japanese Consumption Tax purposes, and a taxpayer calculates the creditable input tax amount from the company records, rather than from VAT invoices.
In part, this was because there was historically only a single Consumption Tax rate. This changed in October 2019 when the Consumption Tax rate was increased to 10% and a second, reduced rate of 8% was introduced.
Invoice disclosure requirements
The following information is required on any qualified invoices. The registered Consumption Tax business operator may issue electronic invoices instead of paper-based invoices provided that certain conditions are met.
- Issuer qualified invoice identification number (granted on successful application)
- Customer identification
- Description of taxable service
- Price (split by Consumption Tax if applicable)
- Consumption Tax charge
Asia Pacific e-invoicing
|Country||Date||Comments (click for details)|
|Australia||TBC||PEPPOL-based e-invoicing with no govt intervention B2B|
|China||Nov 2023||Special e-fapiao VAT invoice being piloted with 2023 full implementation|
|India||Oct 2020||B2B pre-clearance with separate B2C; completed Apr 2021|
|Indonesia||Jul 2015||e-Factur Pajak electronic invoicing|
|Japan||Oct 2023||Tax qualified invoices|
|Kazakhstan||Jan 2017||e-invoicing IS ESF|
|Kyrgyzstan||May 2023||Mandatory e-invoicing for goods|
|Malaysia||Aug 2024||e-invoicing pre-clearance|
|Mauritius||Jan 2024||Electronic fiscal cash registers|
|New Zealand||Mar 2022||B2G PEPPOL-based e-invoicing|
|Philippines||Jan 2024||2022 pilot of e-invoices; to follow South Korea model|
|Singapore||TBC||Mandatory B2G e-invoicing on InvoiceNow|
|South Korea||2011||Near real-time invoice reporting|
|Taiwan||2017||Electronic GUI invoices; non-residents since 2020|
|Thailand||2018||E-invoice reporting where adopted|
|Vietnam||Nov 2021||Pre-clearance B2B verification code e-invoice|