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 was implemented on October 1, 2023.
The Invoice System was introduced to address the lack of clarity caused by the coexistence of multiple consumption tax rates and the growing need to eliminate the 'tax windfall' that sellers obtain from buyers. Its implementation enables 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 information required for a 'standard invoice.'
Under the current input tax credit system, businesses can deduct input tax (consumption tax paid on purchases) from their output tax when paying consumption tax. However, once the new system begins, input tax credits cannot be claimed without the issuance of 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-registered businesses) must issue invoices containing their registration number upon request from buyers (taxable businesses). Sellers are required to retain copies of the invoices they issue, while buyers are required to preserve the invoices they receive.
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 take appropriate 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 corporations or non-juridical organizations, that are required to submit notifications for the establishment of payroll offices
(5) Entities other than (1) through (4), such as corporations with head offices in Japan established under specific laws, or those meeting certain requirements such as submitting tax returns or notifications to district tax directors, that have filed a notification with the Commissioner of the National Tax Agency
Category (3) includes joint-stock companies (Kabushiki Kaisha), general partnerships, limited partnerships, general incorporated associations, and educational foundations. Entities in category (4) without registration include health insurance societies and corporate pension funds, while non-juridical organizations include unregistered condominium management associations.
A single Corporate Number is assigned to each corporation. Numbers are not assigned to individual branches or business offices of a corporation. Furthermore, Corporate Numbers are not assigned to sole proprietors or associations. It is also important to note that once a Corporate Number is assigned, it will not be changed.
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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 shows the structure of the registration number:
- Taxable businesses with a Corporate Number: 'T' + Corporate Number (13-digit number)
- Taxable businesses without a Corporate Number (sole proprietors, non-juridical organizations, etc.): 'T' + 13-digit number
For taxable businesses without a Corporate Number, the 13-digit number is not a My Number (Individual Number) and does not overlap with Corporate Numbers. It is a unique number assigned to each business operator.
[Reference] 'National Tax Agency: About Corporate Numbers'
The 'Basic Three Information' Available via Corporate Number
The following 'Basic Three Information' regarding entities with a Corporate Number can be obtained from the Corporate Number:
- Trade Name or Corporate Name
- Location of Head Office or Principal Office
- Corporate Number
These three basic pieces of information are published on the National Tax Agency Corporate Number Publication Site and are available for anyone to use.
Unlike the Individual Number (My Number), there are no restrictions on the scope of use. However, for organizations without legal personality, the consent of a representative or administrator is required for publication.
In addition to the three basic pieces of information, the following details can also be obtained from the aforementioned site.
- Trade Name or Corporate Name After Designation of Corporate Number
- Location of the Corporation
- Change History Information, etc.
- English Notation of the Corporation's Trade Name or Name and Location
- Trade Name or Corporate Name (Furigana)
The following information can be obtained from the change history information.
- Date of Corporate Number Assignment
- Date of Change (Reason for Change, Information Prior to Change)
To become a qualified invoice issuer, you must submit an application. After 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
