Japan MOF Issues Information on Draft Measures for Transition to Consumption Tax Invoice System

The Japanese Ministry of Finance Dec. 26 issued Tax E-mail Magazine No. 158, announcing measures contained in draft 2023 tax reform provisions intended to ease the transition to the invoice system for consumption tax. The announcement explains measures to: 1) reduce the consumption tax payment amount to 20 percent of the tax when a tax-exempt business operator becomes an invoice-issuing business; 2) reduce other administrative burdens, such as with purchase tax credits for small transactions and certain refund invoices; and 3) not require an explanation of hardship for registration applications submitted after the March 31, 2023, deadline. The agency also ...