Outline of the Invoice System⑥

Those who are considering whether to switch to a taxable business

Tax-exempt business operators such as sole proprietors and freelancers should choose one of the following based on their business performance and business partners.

If continue to be the duty-free business
√There is no need to pay consumption tax as before
√You can maintain your income if sales do not decline
×It is not eligible for the purchase tax credit, and there is a possibility that the customer may request a discount for the consumption tax.
×There is a possibility of losing competition with taxable business operators (qualified invoice issuing business operators)

Switch to taxable entity
√Because it is subject to purchase tax deduction of business partners, it is possible to do business stably
×Reduced take-home pay due to consumption tax obligation
×Invoices have more items than traditional invoices, making accounting more complicated.