With annual sales of 10 million yen or less are exempted from tax liability. [Note 2] Therefore, it was common for businesses with annual sales of 10 million yen or less not to become taxable businesses and to choose tax-exempt businesses that are exempted from the obligation to pay consumption tax. However, only taxable business operators can be registered as qualified invoice issuing business operators, so they cannot issue invoices if they remain tax-exempt business operators.
Even though transitional measures are in place, the purchase tax credit will no longer be applied to taxable purchases from tax-exempt businesses. may be [Note 2] National Tax Agency | Exemption from tax liability 4. What to do in preparation for the October 2023 invoice system Preparation In preparation for the introl Cambodia phone number list dduction of the invoice system, we will explain what to do and what to do from now on for the seller side, the buyer side, taxable business operators, and tax exempt business operators. 4-1. Dealing with sellers The invoice system is a system for the seller to inform the buyer of the correct applicable tax rate and consumption tax amount. Therefore, invoice issuers have certain obligations.
Obligation to issue invoices: Obligation to issue invoices at the request of the counterparty to the transaction who is a taxable business operator 2. Obligation to issue return invoices: Obligation to issue return invoices in the event of price conversions such as discounts 3. Obligation to issue amended invoices: Obligation to issue amended invoices when there is an error in the delivered invoices 4. Obligation to issue a copy of 1 to 3 4-2. Buyer's response Once the invoice system begins, the buyer will need to store the invoice in order to qualify for the input tax credit. There are three types of retention obligations.