Hello everyone,
From October 1st 2023, There will be a big change about Japanese Sales Tax.
( officially the word “consumption tax” is popular, but let me use sales tax in this blog.)
First of all, this situation will happen from 2023, I think.
↓ ↓ ↓
Yes, 2023 is not so coming soon but unfortunately it’s already decided.
Before let you know detail about the figure (above), I’ll explain about the basic system of Japanese Sales Tax, which can be described as follows;
In fact, to claim “Paid Sales Tax”, you must keep receipts and invoices at least for 5 years.
It doesn’t seem very complicated rule.
But, don’t forget about FIRST change was already occured from October 1st 2019.
↓ ↓ ↓
And then, the SECOND change is this (as follows;
↓ ↓ ↓
I think that SECOND one is really hard to small business owners.
Suppose that a company owner buy some items and ask receipts to venders.
<e.g.>
In that case, Mr. A will be at advantage.
But for Mr. B, what do you think ?
In fact, when Mr. B doesn’t submit the Sales Tax form, he can’t get Registration Number.
But If Mr.B fill out the application form that ask tax office to issue Registration Number and
submit Sales Tax form since then, he can get that number.
( in most cases, if 2 years ago’s sales amount is less than 10,000,000yen, he doesn’t need to submit Sales Tax Filing. Of course, he CAN do in some cases.)
It’s too hard to small business actually.
But, don’t worry about it so seriously, let me show you the exception.
(it’s not very clear to see, please click on it to make it big size)
https://www.police.pref.wakayama.lg.jp/03_soudan/seian_todokede/documents/invoice.pdf
And also, there’s an transitional rule 2023～ 2029.
1) from Oct. 1st 2023 to Sep. 30th 2026
… 80% of sales tax can be claimed as “Paid” one, without any Registration Number
2) from Oct. 1st 2026 to Sep. 30th 2029
… 50% of sales tax can be claimed as “Paid” one, without any Registration Number
It’s very complicated so that I can’t believe why Goverment decided these new rules.
Actually, I can’t explain all about them… but don’t worry, you can find a lot of information, at many Website.
Have a nice day 🙂
