Details of the new input tax credit system, named the Qualified Invoice Based Method, have been announced by the National Tax Agency and E-Invoice Promotion Association (EIPA) in 2020. One of the most important parts of the system is the Qualified Invoice System. The platform is available to taxpayers from October 2023 and the implementation process will continue between 2023 and 2029.
Only registered taxable entities can issue a qualified invoice. Companies whose sales are equal to or less than 10 million Japanese Yen (JPY) are not eligible. Target businesses must be eligible to pay the Japanese Consumption Tax (JCT).
Before the Qualified Invoice Based Method, there was a traditional way of generating e-Invoices. Below you can see the difference between the traditional system and the new automated system created with the digitalization of invoicing system in Japan . Issuing invoices in the traditional way will remain possible, but taxpayers who want to digitize their processes must register by the end of 30 September 2023.
Paper based invoicing process:
Automated alternative:
Technical Details
The Qualified Invoice Based Method applies primarily to Business-to-Business (B2B) transactions for Japanese Consumption Tax purposes.
The Qualified Invoice System itself does not mandate a specific electronic invoice format. However, organizations exchanging electronic invoices through the Peppol network use the Japanese Peppol specification (PINT JP), which is based on Peppol BIS Billing 3.0 and EN 16931.
A digital signature is generally not mandatory, and electronic documents should be retained in accordance with the applicable Japanese electronic record retention requirements.
Every Qualified Invoice should contain at least the following information:
- Supplier name
- Qualified Invoice Registration Number
- Transaction date
- Tax rate
- Description of goods or services
- Taxable amount by tax rate
- Consumption tax amount by tax rate
- Buyer name
Where invoices are issued in foreign currencies, the applicable Japanese Consumption Tax amounts must be calculated and reported in accordance with Japanese tax regulations.
PEPPOL International Invoicing Model (PINT)
Japan became a Peppol Authority in 2021 through the Digital Agency of Japan.
The Japanese PINT JP specification was developed in cooperation with the E-Invoice Promotion Association (EIPA) and OpenPeppol to standardize electronic invoice exchange while remaining aligned with Peppol BIS Billing 3.0 and EN 16931.
Organizations wishing to operate as Peppol Service Providers must complete the Digital Agency acknowledgment process, and approved providers are published on the official Digital Agency website.
How can SNI help you?
SNI provides an end-to-end Japan e-Invoicing solution supporting the Qualified Invoice System and Peppol electronic invoice exchange.
Our solution supports the complete invoice lifecycle, including invoice creation, data extraction, mapping, XML generation where applicable, validation, transmission, reception, monitoring, reconciliation, and long-term archiving.
SNI automatically extracts invoice data from ERP systems and generates electronic invoices in accordance with the PINT JP / Peppol BIS Billing 3.0 specifications where Peppol exchange is used.
As a Peppol Access Point, SNI securely exchanges electronic invoices through the Peppol network while supporting interoperability with other accredited Peppol Service Providers.
For inbound invoices, SNI automatically retrieves electronic invoices received through the Peppol network and transfers the structured invoice data into the relevant ERP modules for further processing.
All inbound invoices are displayed in SNI’s Inbound Cockpit, providing centralized monitoring, invoice status tracking, structured invoice visualization, and human-readable HTML/PDF rendering.
SNI’s invoice reconciliation functionality automatically matches incoming invoices with purchase orders, delivery notes, or other ERP documents, reducing manual effort while improving processing accuracy and accelerating invoice approval workflows.
SNI solution integrates with clients’ systems without requiring ERP upgrades and supports SAP ECC 4.7 and higher, SAP ERP, SAP S/4HANA, and SAP Business Technology Platform (SAP BTP) while remaining ERP-independent.
With continuous monitoring of regulatory developments published by the National Tax Agency (NTA), the Digital Agency, and OpenPeppol, SNI enables organizations to maintain long-term compliance while minimizing implementation effort and operational risk.