Japan is moving closer to the roll-out of its Qualified Invoice System (QIS), which will happen in October 2023.
Under QIS rules, taxpayers will only be eligible for input tax credit after being issued a qualified invoice. However, exceptions exist where taxpayers do not require a qualified invoice to take input credit.
The new system does not entail mandatory e-invoice issuance, though QIS introduces the following requirements for invoices:
- The invoice must include the Qualified Invoice Issuer Number (QIIN) of the issuer
- The invoice must include a breakdown of applicable tax rates for that given transaction, as well as the consumption tax amount
Source Sovos
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