E-invoicing compliance and regulatory updates - Japan

Electronic Invoicing in Japan

Is e-invoicing mandatory in Japan ?

E-invoicing is allowed in Japan but not mandatory. It is allowed under the Qualified Invoice System (QIS).

Who is affected?

The Qualified Invoice System applies to taxpayers engaged in taxable transactions under the Japanese Consumption Tax (JCT). All registrants of JCT are qualified to send e-invoices. Only registered JCT taxpayers can issue qualified e-invoices. All other taxpayers, including non-registered entities and consumers, are not required to participate in QIS.

Compliance requirements

To issue a qualified invoice, the supplier must register with the National Tax Agency (NTA). E-invoicing is allowed with buyer consent. Invoices must meet the JCT requirements for content and retention. For electronic transactions, at least one of the following must be ensured: timestamping, use of secure systems that track or prevent changes, or internal controls that prevent unauthorized changes. For digitized documents, timestamps and specific system documentation may be required. To be able to use e-invoicing, both supplier and buyer must be registered with NTA and JCT.

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Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Key Deadlines 

• No upcoming deadlines

Standards & Platforms

Platform

There is no national platform through which invoices must be transacted. Japan has adopted the Peppol framework as its national e-invoicing standard.

What formats are required in Japan?

There is no mandatory invoice format in Japan. Both electronic and paper invoices are accepted under the Qualified Invoice System. When using e-invoicing, the use of Peppol JP-PINT is required.

Archiving in Japan

What are the archiving requirements in Japan?

Records must be kept seven years after the filing due date (i.e., two months after the company’s fiscal year-end) for consumption tax purposes. For corporate tax purposes, records must be kept generally seven years (ten years for tax loss years).

Legal invoice:

• For suppliers: A legal invoice is the invoice sent to the buyer in the format agreed with the buyer.
• For buyers: A legal invoice is the invoice received from the supplier in the format agreed with the supplier.

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Key Actions

Ensure compliance: Register with the National Tax Agency (NTA) as a qualified invoice issuer if subject to Japanese Consumption Tax (JCT) and agree with your business partners on the use of e-invoicing.

Japanese e-invoicing and archiving requirements at a glance:

Supplier requirement: Agree on the use of e-invoicing with business partners. If e-invoicing is desired, registration with the NTA and JCI is required.

Buyer requirement: Agree on the use of e-invoicing with the business partners. If e-invoicing is desired, registration with the NTA and JCI is required.

Archiving requirement: Keep records for seven to ten years.