Japan Adopts Peppol Network for e-Invoicing: Qualified Invoice Method
The deadline for Japanese Consumption Tax (JTC) taxpayers to register as Qualified Invoice Issuer has been extended to 30 September 2023.
As of October 1st, 2023, Qualified invoices will be required, which can be exchanged electronically using the Peppol Network.
Japanese Consumption Tax
Japan will introduce from October 1st, 2023, a new Qualified Invoice Method system. Under the new system, a JCT taxpayer will be required to retain a qualified invoice issued by a registered invoice issuer in order to be eligible to claim an input credit. All businesses in Japan who wish to claim JCT are affected by the new invoice system. Deadline for companies to register and get a Japan Consumption Tax system ID is September 30th, 2023.
In order to comply with this system, invoice issuers must submit an application to the tax office to get a consumption tax ID that will need to appear on invoices compliant with the new system called “qualified invoices”.
Qualified Invoice Method via Peppol
Japan is in the process of developing its e-invoicing project based on the Peppol standard. Peppol is a common and interoperable standard that aims to promote the development of cross-border e-Procurement.
EIPA and the Japanese government have been working together with OpenPEPPOL to develop a Japanese standard that meets the country's legal and business requirements since September 2021. The basis of the Japanese model is PINT, the international version of Peppol based on BIS Billing 3.0. This version is designed to meet international requirements and allows local specifications to be added.
Its goal is to facilitate a digital transformation in the country by promoting the use of technology for the management and exchange of standardized documents. Digitizing the entire invoicing and administrative process will make Japanese companies more efficient and productive. EDICOM is a member of EIPA and will support Japanese companies in their digital transformation.
As of October 1st, 2023, Qualified invoices will be required, which can be exchanged electronically using the Peppol Network. The Japanese Digital Agency recommends and promotes the use of the Peppol format for the exchange of electronic invoices.
The implementation of Peppol in Japan means that the public administration and its suppliers will be able to exchange their electronic documents in Peppol format. There has been no obligation in the country to issue and receive electronic invoices, however EIPA recommends companies to use Peppol-compatible e-Invoicing software by October 2023.
Information necessary on new qualified invoices
- Name and the tax ID number of JCT Invoice issuer
- Date of invoice
- Details of invoice items (especially for reduced tax rate),
- Invoiced amount with the applicable tax rate,
- Consumption tax amount with applicable tax rate
- Customer’s name
Watch our webinar in collaboration with the Digital Agency
To find out more about how the e-Invoicing system in Japan works, watch our webinar on March 14th that we held with Hiroyuki Kato and Atsuya Sugawara from the Digital Agency Japan.
EDICOM, acknowledged Peppol Service Provider in Japan
The Japan Peppol Authority has certified EDICOM as an authorized Peppol service provider in the country, following assessment by the Digital Agency.
This accreditation qualifies EDICOM as a partner that meets the requirements to operate in Japan and can help national and international companies implement their e-invoicing projects in the country.
EDICOM has been a certified Peppol Access Point since 2015. EDICOM Peppol Access Point enables administrations and authorities to interact with their network of partners and suppliers through integrated solutions that automate the exchange of all types of electronic documents under the Peppol standard.
Which countries exchange electronic invoices through Peppol?
Although Peppol was initially designed by the European Union to facilitate cross-border trade between companies and public bodies within the EU itself, it has become a successful model and is being used outside the EU.
Looking closely into the APAC region, Singapore, Australia and New Zealand are some countries that also will be working with the Peppol format. Countries like Malaysia are also considering the use of the Peppol Network for their electronic invoicing projects.
In Europe, United Kingdom, Germany, France, Spain, Sweden, Italy, Poland, Norway, Netherlands, Denmark, Finland, Belgium, Austria, Iceland, Greece, Portugal, are some of the countries that belong to the Peppol network.