Consumption Tax & Qualified Invoices

Consumption tax and the qualified invoice system are how Japan taxes your sales and how your customers claim their input credit. This feature handles the calculation and the qualified-invoice paperwork in one place.

When consumption tax is worked out in a spreadsheet at month-end, the 8% food line and the 10% service line get blurred, the registration number is missing from half the invoices, and someone rebuilds the output and input figures by hand. Here, each line carries its own rate, the registration number prints on every invoice, and output tax and input tax land in their own accounts the moment you post the sale. The figures for your return are already split and correct.

What you can do

• Apply the right rate per line. Set each product to 10% standard or 8% reduced, so each invoice line carries the right rate and mixed-rate invoices (food at 8%, other items at 10%) are correct without manual splits.
• Print qualified invoices. Add your registration number once and it appears on every invoice, meeting the qualified invoice (invoice system) requirement.
• Separate output and input tax. Tax on sales posts to an output (payable) account and tax on purchases posts to an input account, ready for your consumption tax return.
• Round once per invoice. Tax is summed by rate and rounded once per invoice, the way your return expects.
• Post tax with the document. When you invoice a sale or book a bill, the tax and its ledger entry are created together, so the books and the tax agree.

How it works

You set a tax rate (8% reduced or 10% standard) on each invoice or bill line. When the document is posted, the system totals the tax by rate, rounds it per invoice, prints your registration number on the invoice, and posts the output tax (on sales) or input tax (on purchases) to its own ledger account. The figures your accountant needs for the consumption tax return are separated and ready, with no month-end rebuild.