Japan – JP PINT e-invoicing FAQs released

The Japanese Digital Agency has published Frequently Asked Questions in relation to JP PINT e-invoicing. While these FAQs are only available in Japanese on the agency’s website, Avalara has reproduced these below English for clarity.

By way of background, Japan will implement a new Qualified Tax Invoices system for Japanese Consumption Tax (JCT) with effect October 1, 2023. Historically, there have been less onerous invoicing requirements with other documents and accounting records used to evidence JCT (ledger method). Businesses will be required to issue qualified tax invoices which fulfil certain conditions, and these will need to be retained by the customer in order to claim input JCT credits. Businesses must submit registration applications to become a registered issue of qualified invoices by March 31, 2023.

To complement and support this, the country is also implementing Peppol e-invoicing (under the new JP PINT standard). PINT refers to the globalised version of Peppol BIS Billing 3.0 - its Peppol INTernational document model.

Japanese businesses adopting Peppol will need to appoint a Certified Service Provider to enable them to send and receive JP PINT qualified tax e-invoices. Avalara is a Peppol Certified Service Provider in Japan.

What is JP PINT?

JP PINT is a Japanese standard specification for digital invoices exchanged on the Peppol network. At the moment, Peppol BIS Standard Invoice JP PINT (hereinafter referred to as Standard Invoice JP PINT) corresponding to "qualified invoice" in the consumption tax qualified invoice storage method and JP BIS Self- Billing Invoice (hereinafter referred to as JP Self-Billing) has been published (JP Self-Billing is a draft version).

Do all "electronic invoices" have to be compatible with JP PINT?

They are standard specifications for digital invoices for exchange on the Peppol network, but it is not obligatory to use these standards. In addition, the provision and receipt of so-called "electronic invoices" is not obligatory.

In the first place, is it an obligation to provide and receive so-called "electronic invoices" under the method of storing qualified invoices for consumption tax?

Under the storage of qualified invoices method (for consumption tax), businesses that issue qualified invoices are required to issue qualified invoices at the request of taxable businesses (obligation to issue qualified invoices). Provision of electronic records (provision of so-called "electronic invoices") is not obligatory.

What kind of updates are you going to make for JP PINT in the future?

Specific details will be determined through coordination with OpenPeppol. In the future, we will consider the specifications of the classified invoice (JP BIS Invoice for Non-tax Registered Businesses).

Standard Invoice JP PINT and JP Self-Billing correspond to the items required for qualified invoices and purchase statements that need to be saved for the application of the input tax credit for consumption tax from October 2023. Is this correct?

Standard Invoice JP PINT and JP Self-Billing are created to meet the requirements for qualified invoices and purchase specifications in the storage of qualified invoices method. Therefore, the systems of the seller (C1) and the buyer (C4) can use these standard specifications to generate data sets that satisfy the content requirements of qualified invoices. Standard Invoice JP PINT and JP Self-Billing have the same semantic model.

Does this mean that if you exchange data sets compatible with Standard Invoice JP PINT and JP Self-Billing, you can immediately apply for the purchase tax deduction for consumption tax?

Simply exchanging data sets compatible with Standard Invoice JP PINT and JP Self-Billing, which include the information required as items to be described on qualified invoices and purchase specifications in the consumption tax qualified invoice storage method, will not immediately meet the requirements for receiving the purchase tax credit for consumption tax. In order to receive the purchase tax credit for consumption tax, it is necessary to store the data sets in a way that meets the requirements of the law (a method that conforms to the Electronic Book Storage Act).

At Avalara, we make e-invoicing compliance simple. The Avalara e-invoicing solution is designed to comply with regulations in over 60 countries and we’ve got the future covered, too. This cloud-based solution is flexible, scalable and allows you to quickly respond to new requirements, including Japan’s upcoming JP PINT e-invoicing standard using the Peppol network. Contact us to discuss how Avalara can help you meet e-invoicing requirements in Japan and Peppol e-invoicing cross Europe, Australia and New Zealand.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.