Japanese consumption tax qualified invoice system starts from October 1, 2023. From October 1, 2023 onward, consumption tax credit can only be taken for the consumption tax qualified invoice issued by consumption tax qualified enterprise. This system is similar to the “Invoice System” in EU/other countries.
To become a consumption tax qualified enterprise, a company will need to register itself as consumption tax qualified invoice issuer by submitting the application form to the Japanese tax authorities. Application form is acceptable from October 1, 2021. In the case where a company would like to apply this treatment from October 1, 2023, application form should be submitted to the Japanese tax authorities by March 31, 2023.