TOKYO, Oct 01 (NHK) - Japan has introduced a new invoice system designed to more accurately calculate the amount that businesses must pay in consumption tax under the country's dual tax rate structure.
Starting on Sunday, businesses will need to register with the state in order to issue qualified invoices when they sell products or provide services.
Businesses that have purchased products or received services will need to have invoices, when they apply for tax deductions or file tax returns.
The invoices will have to contain certain information, such as the amount of tax required according to each of the two tax rates -- 10 percent for most products and services, and 8 percent for food and other items.
The new invoices are similar to those used in EU countries.
Small businesses that earn less than 10 million yen, or about 67,000 dollars, a year in sales were previously exempt from tax payments. But they must now pay the tax, if they register with the state to issue the invoices.
The government has transitional measures in place to allow small businesses to reduce their tax payments for three years.
Source: ANNnewsCH
