Seventh Sense Group

Akasaka 2-12-10

Tokyo, 107-0052

Monday to Friday

9:00 ~ 18:00

Purchase tax credits (Invoice System)

Want to know more about the Japanese Consumption Tax? Check out our video and get in touch with us at Seventh Sense Group!

If you have a business in Japan, you are probably aware of the Japanese consumption tax.

From 2024, Japan has introduced the Invoice System and to encourage business owners to register for the System, there are several special measures related to consumption tax.

One of them is the special measure of 80% deduction and this is to receive consumption tax credits on purchases made from non-registered businesses.

In principle, if a business is not registered as a Qualified Invoice Issuer, it cannot issue a qualified invoice. For businesses to receive a consumption tax credit, their purchase must have a qualified invoice. If not, they cannot reduce their consumption tax through their consumption tax return.

However, under this special measure, tax filers can claim the credit of up to 80% until 30 September 2026. After that, the rate will be reduced to 50% and this will continue for another 3 years until 30 September 2029. From 1 October 2029, there will be no consumption tax credit for purchases from non-registered businesses.

If you would like to know more about the Japanese Consumption Tax, please do not hesitate to contact us at Seventh Sense Group.

This information is for general informational purposes only and should not be considered as professional advice. Please consult with a qualified professional for any specific questions you may have.

Follow Us on Social Network

Latest Posts

Get some free advice

Company establishment and accounting can be complicated in Japan.
Don’t do yourself, we’re here to help.

Get in touch for  a free consultation.