invoice-system

Invoice System (インボイス制度)

A comprehensive knowledge base on the Qualified Invoice Retention Method (Invoice System). It supports understanding of the system overview, required descriptions, transitional measures, input tax credit rules, and registration decisions.

System Overview

The Invoice System (Qualified Invoice Retention Method) is a system concerning input tax credits for consumption tax that began on October 1, 2023 (Reiwa 5). In principle, for a taxable business operator to receive an input tax credit, it is necessary to retain a "Qualified Invoice" issued by a "Qualified Invoice Issuing Business Operator." To become a Qualified Invoice Issuing Business Operator, an application for registration with the tax office is required, and a registration number (T + 13 digits) is assigned.

The FY2026 Tax Reform Outline (cabinet-approved on December 26, Reiwa 7) introduces major changes, including the establishment of a new 30% special provision and the restructuring of the transitional measure schedule into five stages.

Quick Reference

Format of the Registration Number

• T + 13-digit number
• Corporations: T + Corporate Number (e.g., T1234567890123)
• Individuals: T + unique number (different from My Number)

The Six Mandatory Items to be Stated on a Qualified Invoice

1. The issuer's name or trade name andregistration number
2. Date of transaction
3. Details of the transaction (including indication of items subject to the reduced tax rate)
4. Consideration amount and applicable tax rate classified by tax rate
5. Consumption tax amount, etc. classified by tax rate
6. Name or trade name of the recipient

List of Current Transitional Measures (as of Reiwa 7)

Measure	Details	Application deadline
30% special provision	Pay 20% of the consumption tax on sales	Until the taxable period including R8.9.30
Deduction for purchases from tax-exempt business operators	80%→70%→50%→30%→0%	Complete transition on R11.10.1
De minimis special provision	No invoice required for amounts under 10,000 yen including tax	Until R11.9.30
De minimis refund invoice exemption	No refund invoice required for amounts under 10,000 yen including tax	Permanent measure

Rounding of Consumption Tax Amounts

• For one invoice, per tax rate,oncerounding
• Rounding down, rounding up, or rounding to the nearest are all permitted (at the business operator's choice)
• Rounding on a line-by-line basis is not permitted

Reference File Guide

Depending on the content of the question, refer to the following reference files:

Question Category	Reference File
Items to be stated on a qualified invoice, types, rounding	references/qualified-invoice-requirements.md
Transitional measure schedule, deduction rates, deadlines	references/transitional-measures-timeline.md
Requirements, exceptions, and retention rules for input tax credits	Run /tax-invoice-credit-context
Whether to register and choosing a calculation method	references/decision-flowchart.md
Common Practical Mistakes and Points to Note	references/common-pitfalls.md
Registration Applications, Cancellation Procedures, and Base Periods	references/registration-procedures.md
Judgment and Pricing Strategy for BtoC Businesses	references/btoc-and-pricing-strategy.md
Other Questions and Specific Situations	references/faq.md

Response Patterns

When answering user questions, follow the structure below:

1. Conclusion (Answer)

Present a clear answer to the question first.

2. Legal Basis

Indicate the relevant laws, regulations, and circulars. Example:

• "Under Article 57-4 of the Consumption Tax Act, there is an obligation to issue qualified invoices"
• "Under the R8 Outline, a 30% special exception will be newly established starting from the R9 tax year (sole proprietors only)"

3. Calculation Example

If applicable, show specific numerical examples. Amounts are int(integers in yen), following the rounding rules (stated in CLAUDE.md).

4. Caveats

• Point out pitfalls and exceptions
• references/common-pitfalls.md Refer to the relevant item in

5. Disclaimer

Add the following at the end of the answer:

This information is based on a general interpretation of tax law and may differ depending on individual circumstances. For specific decisions, please consult a tax accountant or other specialist.

Cross-References with Other Skills

Related Skill	Purpose	Timing for Reference
consumption-tax	Consumption Tax Calculation and Tax Return Preparation	When specific calculation of the consumption tax amount is required
journal	Journal Entry Input and Bookkeeping Management	How to record journal entries based on invoices
reading-invoice	OCR Reading of Invoice Images	When converting paper invoices into data
tax-advisor	General Tax Advice	When including tax consultations other than invoices
settlement	Year-End Closing Processing	When confirming the accounting treatment of consumption tax

Disclaimer

• The information in this skill reflects content up to the FY2026 Tax Reform Outline (approved by the Cabinet on December 26, 2025)
• The content may change due to deliberation and enactment of bills in the Diet (particularly the 30% special exception and the five-stage schedule)
• For individual and specific tax judgments, consulting a tax accountant or other specialist is recommended
• Since the application conditions for the invoice system's transitional measures change each fiscal year, be sure to confirm the applicable fiscal year