What are the advantages and problems of the invoice system that is finally being implemented?

In Japan, the ' invoice system ' based on the qualified invoice storage system will come into effect on October 1, 2023, but while some people welcome its introduction, there are also critical opinions. It is reported every day. The Japan Times , Japan's oldest English-language newspaper, discusses the advantages and disadvantages of the invoice system.

Freelancers aren't happy with Japan's new invoice system - The Japan Times
https://www.japantimes.co.jp/community/2023/09/25/how-tos/freelancer-tax-system/

Consumption tax is a tax added to the purchase of goods and services, and is usually paid by the consumer, but at this time, the ``consumption tax amount on purchases'' is deducted from the ``consumption tax amount on business sales''. ``Purchase tax credit'' is important. The bookkeeping method calculates this purchase tax credit based on the business's books.

The invoice system is a system in which sellers issue ``qualified invoices'' that convey accurate applicable tax rates and consumption tax amounts to buyers, and was introduced for more accurate consumption tax payment.

Under the invoice system, the seller, a registered business operator, is required to issue an invoice when requested by the buyer, a taxable business entity. In addition, the buyer is required to save the invoice in order to receive input tax credit. The buyer must prove the sales tax paid to the seller with an invoice.

The reason behind the introduction of the new invoice system is that a reduced tax rate of 8% was introduced in 2019 in addition to the 10% consumption tax, and calculations surrounding consumption tax suddenly became more complicated. The introduction of an invoice system has the advantage of simplifying calculations based on issued invoices.

As per the previous system, businesses with annual sales of less than 10 million yen are eligible for tax exemption. In order to issue an invoice, it is necessary to register as a 'qualified invoice issuing business', which is a consumption taxable business, and tax-exempt businesses cannot become such qualified invoicing businesses.

However, buyers will start asking for invoices in order to receive the input tax credit, so they will prioritize qualified invoice-issuing businesses that can issue invoices over tax-exempt businesses that cannot issue invoices. Masu. Because of this, it has been pointed out that the system is quite disadvantageous for tax-exempt businesses with annual sales of less than 10 million yen. Additionally, registering as a qualified invoice issuing business will result in a consumption tax liability, which has been criticized as a substantial tax increase.

For example, the average annual income of animators in their 20s who work as freelancers is only 1.1 million yen, making it extremely difficult to become a qualified invoice issuing business for the invoice system. Masuaki Ueda, an anime producer at Aniplex, has long been vocal against the invoice system, arguing that it makes it difficult to maintain a friendly relationship between studios and animators. .

In addition, many translators are independent contractors who work as freelancers. The Japan Translators Association released a statement saying, ``Translators not only view the invoice system as a significant tax increase, but also worry that the extra administrative work will affect their overall business activities as translators.'' I am.

Furthermore, actors and voice actors are also threatened by the invoice system. Yuko Kaida , a voice actress, said, ``The life of a voice actor is becoming increasingly difficult, and some people may quit voice acting because of this.With the invoice system, the hurdles for new entrants to the industry are higher than ever. 'People who grew up in poor families are now on the verge of not being able to start voice acting. It's a big loss for the industry.'

Once you are registered as a qualified invoice issuing business, your registration number and public information will be published on the National Tax Agency's publication site for qualified invoice issuing businesses . Creators such as manga artists, voice actors, and VTubers who work while hiding their real names are also concerned that their personal information will be published on the public website of invoice issuers eligible for the invoice system, and that they may be exposed to stalking or intimidation. Masu.

At the time of writing the article, the implementation of the invoice system has already been decided, but opposition movements are still continuing. It has been reported that on September 26, 2023, a rally was held in front of the Prime Minister's Office to call for the cancellation of the invoice system.

More than 500,000 signatures against invoices 'Not registered' Thoughts of a Western confectionery shop owner: Asahi Shimbun Digital
https://www.asahi.com/articles/ASR9V4W6JR9VUTIL00H.html

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• Discord | 'What kind of impact will the invoice system have in your everyday life?' | GIGAZINE
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