Outline of the Invoice System⑤

Those who need to prepare to receive an invoice

1. Consider electronic storage of invoices you receive
   Due to the revision of the Electronic Book Storage Law, which came into force on January 1, 2022, the rules for storing electronic transaction information have changed. Until now, it was possible to store the originals printed on paper, but after January 1, 2022, it will be necessary to store transaction information as electronic data in principle and in accordance with the requirements of the Electronic Book Storage Law.Supported documents: National tax-related documents such as PDFs attached to emails and invoices, statements of delivery, and estimates downloaded from websites.
2. Consider a flow to check if the received document meets the invoice requirementsAfter the introduction of the system, we have to check each time whether the invoices and receipts we receive meet the requirements for invoices. In addition, it is also necessary to check whether the listed registered business number actually exists, so the burden of the confirmation work becomes large. Let’s consider the expense claim flow in advance for efficient processing.
3. Consideration of journal entry method for each tax classification
   The invoice does not show the tax-inclusive amount for each item.
   For this reason, when entering journals with tax-included amounts, it is necessary to classify, totalize, calculate, and adjust them in the following flow.
   •Categorize item details by account
   •Aggregate the tax-excluded amount by tax rate and tax category of the product
   •Multiply each tax rate to calculate the tax-inclusive amount
   •If the total tax-inclusive amount differs from the total tax-inclusive amount for each tax rate stated on the eligible invoice, the difference will be adjusted with input tax, etc.
4. Application of transitional measure for input tax credit
   After the introduction of the invoice system, as a general rule, taxable purchases from tax-exempt businesses, consumers, and other parties other than qualified invoice issuing businesses (tax-exempt businesses, etc.) will be eligible for purchase tax credits. you can’t.
   However, for six years after the introduction of the system, a transitional measure has been established whereby a certain percentage of the amount equivalent to the purchase tax amount can be deducted as the purchase tax amount for taxable purchases from tax-exempt businesses, etc.