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Japan Notification Effective 1st October 2023 VAT

Sheryl_C
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Disclaimer: “Managed Rate Administration is a licensed service offered by SAP Concur with a recurring fee. The rate updates posted are for informational purposes. If you are an MRA customer, please open a ticket with support (with MRA in the subject line) to request the specific rate update. If you would like more information about licensing the service, please contact your SAP Concur Account Executive. Information about the service, please click here."

 

Dear administrator,

 

Japan has announced the Qualified Invoice Base method to receive tax credit for consumption tax corresponding to multiple tax rates on purchases effective October 1, 2023.

 

What is a Qualified Invoice?

A qualified invoice is a document in which a Supplier tells a customer the exact taxable tax rate, consumption tax, etc. in New Input Tax credit system.

 

Details in local language can be found on: https://www.nta.go.jp/taxes/shiraberu/zeimokubetsu/shohi/keigenzeiritsu/invoice_about.htm

A Qualified Invoice must contain the following information:

 

  1. Name of supplier and supplier’s Registration Number for qualified invoice purpose
  2. Date of taxable transaction
  3. Description of taxable transaction (which rate is applied)
  4. Taxable amount per tax rate
  5. Tax amount per tax rate
  6. Name of buyer

 

Reference: Document from the National Tax Agency's website (Japanese)

 

Summary of changes:

 

Effective Date

Type of Invoice

Reclaim Percentage

October 1, 2023

Qualified

100%

Not Qualified

80%

Invoice does not have a Tax ID/VAT

0%

 

Note: Please disregard these updates/changes if they do not apply to your SAP Concur configuration.  Otherwise please raise a Support case for MRA Team (Steps here)

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