It has been officially announced that the deadline for the Japanese Consumption Tax Qualified Invoice Issuer registration has been extended.
The invoice system is scheduled to start on October 1, 2023.
In order to become a qualified invoice issuer, it was necessary to complete the registration application by March 31, 2023.
However, the deadline has now been extended to September 30, 2023.
This article will explain the background of the deadline extension, the registration status of qualified invoice issuers as of March 2023, and important points to note regarding the timing of application.
Why was the Deadline Extended?
As mentioned earlier, until now, the registration application for qualified invoice issuers had to be completed by March 31, 2023.
However, in the tax reform outline approved by the cabinet in December of 2022, it was decided to extend the deadline to September 30, 2023.
The extension is intended to allow more time and resources for establishing a system to accommodate invoice registration, as well as to increase the number of registrants by extending the application period, considering the low number of businesses that completed the application by the initial deadline.
Under the previous rules, if you applied for registration after the initial invoice registration application deadline of March 31, 2023, you were required to state the “difficult circumstances preventing the submission of the registration application by the deadline”.
With the extension of the deadline, this statement is no longer necessary.
Registration Status of Qualified Invoice Issuers
The National Tax Agency reported the registration status of invoices in a meeting on April 24, 2023.
The breakdown of taxable and tax-exempt businesses was disclosed as follows:
Total registrations: 1,822,000
Taxable businesses: 1,681,000 (approximately 88% of registrations)
Tax-exempt businesses: 147,000
Total registrations: 856,000
Taxable businesses: 575,000 (approximately 53% of registrations)
Tax-exempt businesses: 281,000
Furthermore, the cumulative number of applications submitted by the end of the original application period (end of March 2023) was approximately 3.2 million.
It is estimated that about 2.68 million applications were from taxable businesses, indicating that about 90% of all taxable businesses have applied.
Approximately 95% of taxable entities and 75% of individual businesses are reported to have submitted applications.
Don’t Wait Until the Last Minute to Register
As of May 15, 2023, the application and registration process for domestic businesses takes approximately:
– 1.5 months for e-Tax submission
– 3 months for paper-based submission
It is expected to take even longer for foreign companies (currently around 3 months).
Even though the deadline has been extended, it is better to prepare for the application in advance.
For any questions or requests regarding your JCT registration, JPA is here for you!
Please feel free to contact us through the inquiry form for any questions.