Japan's Invoice System (適格請求書等保存方式) tightened consumption-tax input-credit requirements starting October 1, 2023. Input VAT credit requires qualified invoices issued by registered issuers.
Core change
Before: any invoice qualified Now: only **qualified invoices** (適格請求書) from registered issuers qualify as credit basis
Qualified issuer registration
- Apply to NTA for T-XXXXX business number - Corporations and taxable businesses (revenue over ¥10M) automatic - Tax-exempt businesses opt in (registration triggers taxable-business conversion)
Required invoice fields
- Issuer registration number (T-XXXXX) - Transaction date/content - Per-rate breakdown (10%, 8%) - Tax amount, rate, total - Recipient name
Business impact
- Qualified-issuer status is a B2B deal condition - Tax-exempt sub-¥10M businesses face practical pressure to register - freee and MF Cloud auto-issue qualified invoices
Pitfalls
- Transactions with unregistered freelancers: no input credit → effective tax burden on freelancers - Korean companies delivering to Japan must consider qualified-issuer registration for sustained Japanese B2B trade