Relief measures have been proposed to mitigate the Japanese Consumption Tax (JCT) burden on small and medium-sized entities (SMEs) that currently are tax-exempt businesses for JCT purposes but that register under the new qualified invoicing system scheduled to become effective on 1 October 2023 (for prior coverage, see the article in the January 2022 issue of Indirect Tax News). Under the new invoicing system, taxpayers will be required to register and maintain qualified invoices issued by registered suppliers to be eligible to claim an input JCT credit.
Source: BDO
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