On October 1, 2023, an invoice system will be implemented to provide tax credits for consumption tax on purchases. 

The backdrop for the introduction of the invoice system is an increase in the consumption tax rate and a reduction in the tax rate on food and beverages scheduled to go into effect on October 1, 2019. In order for businesses to claim tax credits for consumption tax on purchases under the new system, they must keep a qualified invoice issued by a supplier registered as a taxable enterprise with the tax office director. There is, however, a transition period from October 1, 2019, to September 30, 2023, during which time a business is required to keep an invoice that appends an itemization by tax rate and to enter that information in an account book in order to claim a tax credit for consumption tax on purchases. 

The matters that had been delegated to the Cabinet and Ministry for enforcement of the invoice system, including the calculation of consumption tax on taxable purchases and the scope of transactions for which there is no obligation to issue a qualified invoice, were promulgated, along with the cabinet order and ministerial ordinance regarding the 2018 tax reform, on March 31, 2018. Businesses are advised to begin preparations, including development of new systems for the issuance of qualified invoices and the management of documentary evidence, in accordance with the above.