Japanese Business Glossary

的確請求書 (tekikaku seikyūsho) means qualified invoice in Japanese. This type of invoice meets specific requirements set by the Japanese tax authorities, particularly under the new invoice system for the consumption tax (VAT) regime. A qualified invoice must include the name and registration number of the supplier, the date of the transaction, details of the goods or services provided, the total amount charged including the applicable consumption tax, and the amount of consumption tax separately stated. The qualified invoice system aims to improve the accuracy and transparency of tax reporting and ensure that businesses correctly account for and report consumption tax. Businesses must issue these qualified invoices to claim input tax credits on their consumption tax returns.

返還インボイス (henkan inboisu) refers to an invoice issued to document the return of goods or the refund of payments. It typically includes details such as the original transaction, the reason for the return or refund, and the amount to be refunded. This invoice serves as a record for both the seller and the buyer, ensuring that the refund process is properly accounted for and documented.

適格請求書発行事業者登録番号 (tekikaku seikyūsho hakko jigyosha toroku bango) refers to the Qualified Invoice Issuer Registration Number. This number is assigned to businesses in Japan that are registered to issue qualified invoices under the Japanese consumption tax system.

A qualified invoice includes detailed information required by the tax authorities, such as the seller's registration number, the transaction date, the total amount including tax, and a breakdown of applicable taxes. The registration number ensures that the business is authorized to issue these invoices, which are necessary for buyers to claim input tax credits.

Businesses must apply for this registration to participate in the invoice system, which is part of Japan's efforts to ensure accurate tax reporting and compliance.

適格請求書発行事業者番号 (tekikaku seikyūsho hakko jigyosha bango) refers to the Qualified Invoice Issuer Number in Japan. This number is assigned to businesses that are registered to issue qualified invoices under the new Japanese consumption tax invoice system, also known as the Qualified Invoice System or インボイス制度.

Starting from October 1, 2023, Japan implemented this system to ensure proper documentation and transparency in transactions subject to consumption tax. Businesses that issue qualified invoices must register and receive this number. The invoices they issue must include specific details, such as the issuer's Qualified Invoice Issuer Number, to allow the purchaser to claim input tax credits accurately.

The system aims to improve the accuracy of tax reporting and compliance by providing clear and standardized documentation for taxable transactions. This helps businesses correctly calculate and report their consumption tax obligations.

インボイス番号 (inboisu bangō) refers to an invoice number in Japanese. It is a unique identifier assigned to an invoice issued during a business transaction. This number helps in tracking and referencing specific invoices for accounting, billing, and record-keeping purposes.

An invoice number is crucial for maintaining organized financial records and ensuring that all transactions are accurately documented. It facilitates easy retrieval of information related to particular sales or services provided, aids in resolving any disputes or discrepancies, and is essential for tax reporting and auditing processes. The use of インボイス番号 ensures that both the issuer and the recipient can efficiently manage their invoicing and payment records.

内税 (uchizei) refers to tax-inclusive pricing, meaning the price displayed already includes the consumption tax. In Japan, this is a common practice for consumer goods, where the final price a customer sees is what they pay at the register, with the consumption tax already factored in.

When businesses use uchizei pricing, they must calculate the consumption tax from the total sales price. For instance, if an item is priced at 1,100 yen with a 10% consumption tax rate, the actual pre-tax price of the item would be 1,000 yen, and the included tax would be 100 yen.

The introduction of the Invoice System (インボイス制度) on October 1, 2023, allows for two primary methods for calculating consumption tax: the 割戻し計算 (warimodoshi keisan) or the 積上げ計算 (tsumige keisan). The warimodoshi calculation involves calculating tax by applying a fixed percentage to the total tax-inclusive price, while the tsumige calculation involves summing the tax amounts item by item, as listed on the invoices.

For businesses, choosing the appropriate method for calculating and reporting consumption tax can affect their tax liability and compliance. Thus, it is recommended to consult with a tax professional to determine the best approach for your specific business situation.