[5-Minute Read] What Is the Corporate Number (Registration Number) Required for the Invoice System? Searching and Application | Blog

What Is the Corporate Number (Registration Number) Required for the Invoice System?

The Invoice System (Qualified Invoice Preservation Method) is a method for calculating input tax credits that went into effect on October 1, 2023.
The system was introduced to address the complexity caused by multiple consumption tax rates and the growing need to eliminate the "tax windfall" that sellers receive from buyers. Its implementation allows for the accurate tracking of consumption tax rates and tax amounts.

Under the Invoice System, an invoice (qualified invoice) refers to documents or data, such as invoices or delivery slips, that include a registration number, applicable tax rates, and the consumption tax amount categorized by tax rate, in addition to the items required in a "categorized invoice."
Under the current input tax credit system, businesses can deduct input tax (consumption tax paid on purchases) from their sales tax when filing consumption tax returns. However, once the new system begins, input tax credits cannot be claimed without a qualified invoice. In other words, the buyer's consumption tax payment will increase, resulting in a financial loss.

Sellers who are qualified invoice issuers (invoice-issuing businesses) must issue invoices containing their registration number upon request from buyers (taxable businesses). Both the seller and the buyer are required to retain copies of the issued invoices.
To comply with the system, various measures will be required, such as modifying or building accounting systems, creating manuals, and conducting internal training sessions. Both sellers and buyers must implement these necessary measures.

Under the Invoice System, the first step is to register for a Corporate Number (Registration Number). The Commissioner of the National Tax Agency assigns a 13-digit Corporate Number to the following entities:

(1) National government agencies
(2) Local government bodies
(3) Corporations established through registration under the Companies Act or other laws (registered corporations)
(4) Entities other than (1) through (3), such as non-juridical organizations, that are required to submit notifications for opening payroll offices
(5) Entities other than (1) through (4), such as domestic corporations established under specific laws or those required to submit tax returns or notifications to district tax directors under national tax laws, that have registered with the Commissioner of the National Tax Agency

Category (3) includes joint-stock companies, general partnerships, limited partnerships, general incorporated associations, and educational foundations. Category (4) includes entities without registration, such as health insurance associations, corporate pension funds, and non-juridical organizations like unregistered condominium management associations.
A single Corporate Number is assigned to each corporation. Numbers are not assigned to individual branches or offices of a corporation. Furthermore, Corporate Numbers are not assigned to sole proprietorships or unions. Please also note that once a Corporate Number is assigned, it will not be changed.

☆-☆-☆ End of Body ☆-☆-☆ To issue invoices, registration as a Qualified Invoice Issuer is required, and a registration number will be assigned upon application.
The National Tax Agency's Qualified Invoice Issuer Publication Site provides the structure for registration numbers.
• Taxable businesses with a Corporate Number: "T" + Corporate Number (13-digit number)
• Taxable businesses without a Corporate Number (sole proprietors, unincorporated associations, etc.): "T" + 13-digit number

For taxable businesses without a Corporate Number, the 13-digit number is not a My Number and does not overlap with the Corporate Number. It is a unique number assigned to each business entity.

[Reference] "National Tax Agency: About Corporate Numbers"

The "Basic Three Information" Available via Corporate Number

From the Corporate Number, you can obtain the "Basic Three Information" for entities that have been assigned a Corporate Number, as shown below.

Trade Name or Legal Name
Location of Head Office or Principal Office
Corporate Number

This Basic Three Information is published on the "National Tax Agency Corporate Number Publication Site" and is available for anyone to use.
Unlike My Number, there are no restrictions on the scope of use. However, for unincorporated associations, the consent of the representative or administrator is required for publication.
In addition to the Basic Three Information, the following information can also be obtained from the site mentioned above.

Trade Name or Legal Name After the Corporate Number Has Been Designated
Corporate Address
Change History Information and More
English Name and Address of the Corporation
Corporate Name or Trade Name (Furigana)

The following information can be obtained from the change history:

Date of Corporate Number Assignment
Date of Change Event (Reason for Change, Information Prior to Change)

To register as a Qualified Invoice Issuer, you must submit an application form. Following a review by the tax office, a Registration Notice will be sent once you are registered as a Qualified Invoice Issuer.

[Reference] National Tax Agency Corporate Number Publication Site

Search for Invoice System Registration Status Using a Corporate Number (Registration Number)

You can search for the registration status of the Invoice System using a Corporate Number (Registration Number).
Access the "Qualified Invoice Issuer Publication Site" and enter the Corporate Number (Registration Number) you wish to check. In the "Registration Number" field, please enter the 13-digit half-width numeric characters, excluding the "T".
To the right of the input field, a digit counter is displayed. Once you have entered 13 digits, the screen will turn blue and display "13 digits," ensuring there are no input errors.
Below the input field, there is a display for "Search Multiple Registration Numbers +." By clicking the "+", you can search for up to 10 numbers at once.
The search results will display the following information:

Name or Title of the Invoice Issuer
(For Corporations) Address of the Head Office or Principal Office
(For Non-Resident Businesses other than Specified Foreign Businesses) Address of the office, place of business, or equivalent location related to the transfer of assets conducted within Japan
Registration Number
Registration Date
Registration Cancellation Date, Registration Expiration Date

By submitting the "Application for Publication (Change) of Publication Items for Qualified Invoice Issuers," the following items can be additionally published:

(For Sole Proprietors) Principal Trade Name, Address of the Principal Office, etc.
(For Organizations without Legal Personality, etc.) Address of the Head Office or Principal Office

If the registration date displayed on the site above is "October 1, 2023," it means that the entity is a taxable business capable of issuing invoices from the start date of the Invoice System.

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Registration Is Required for Invoices (Qualified Invoice Issuers)

Since a Corporate Number is assigned even if not registered for the Invoice System, invoices provided by business partners may contain a Corporate Number even if they are not eligible for the Purchase Tax Credit.
The issue arises when conducting transactions from before to after the start date of the Invoice System. The start date of the Invoice System is October 1, 2023, but to become an Invoice Issuer from the start date, you must have completed the registration application by the deadline of March 31, 2023.
If a business partner did not apply for registration by the deadline, invoices or delivery statements issued by them at the end of October 2023 will not have the validity of an invoice. Therefore, it is necessary to check not only whether the business partner is an invoice issuer but also their registration date.

As mentioned above, registration for the Invoice System is voluntary, not mandatory, and requires an application.
You must submit a registration application to the District Director of the Tax Office having jurisdiction over your tax payment location, and upon passing the review, you will be registered as an Invoice Issuer. There is no fee for registration. Registration requires a review, so you will not be registered immediately upon application. Once registered, a registration notice will be sent to you.
Registration applications can be submitted either by paper or via e-Tax, but applying via e-Tax offers the following benefits:

Receive notification faster than paper applications (Paper: approx. 2 months, e-Tax: approx. 3 weeks)
No risk of loss or theft as notifications are received as electronic data
Easily send notifications to business partners via email

Applications via e-Tax can be made using the following methods:

e-Tax Software
e-Tax Software (Web Version): Using a PC
e-Tax Software (SP Version): Using Smartphones and Tablets

The e-Tax Software (Web Version) and e-Tax Software (SP Version) allow you to input items by following the on-screen instructions, eliminating the risk of missing information.
Preparation of items such as your My Number Card and User Identification Number is required for applications via e-Tax.

[Reference] National Tax Agency: Qualified Invoice Storage Method (Invoice System)
[Reference] Registration Application Procedures via e-Tax

For Remaining Search Challenges, Seek a Fundamental Solution

Even with the aforementioned methods, challenges remain, such as the difficulty of searching for businesses that hold multiple invoice registration numbers per corporate number, or unsuccessful searches due to discrepancies between publicly available information and internal master data.

For a fundamental solution, why not reconsider your approach starting with "Internal Data Maintenance"? uSonar comprehensively resolves issues that you may have been concerned about but postponed due to perceived low immediate benefits.
First, please try our "Practical Guide to Assigning Invoice Registration Numbers".

Summary

Under the invoice system, issuing an invoice is necessary for the consumption tax deduction on purchases. If you conduct business with a supplier that is not an invoice-issuing business, the consumption tax paid to that supplier may become ineligible for deduction, potentially increasing your consumption tax liability. Invoice-issuing businesses can be searched by their registration number on the website, and a full list of all businesses can be downloaded for verification.

Checking the registration status and numbers of your business partners every time is extremely time-consuming and may cause operational delays. With uSonar's corporate data LBC, we can support you in assigning invoice registration numbers. This makes it very convenient and highly recommended, as it allows you to easily search and verify the registration status of your suppliers.

How to Automatically Assign
Invoice Registration Numbers?