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 (Reiwa 5).
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 previously obtained 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 on a "standard invoice."
Under the current input tax credit system, businesses can deduct input tax (consumption tax paid on purchases) from their output tax (consumption tax collected on sales) when filing their consumption tax returns. However, once the new system begins, input tax credits cannot be claimed without a qualified invoice. In short, buyers will face higher consumption tax payments, 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). 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 updating or building accounting systems, creating manuals, and conducting internal training sessions. Both sellers and buyers must take appropriate action.
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 corporations with head offices in Japan established under specific laws, or those that meet certain requirements—such as submitting tax returns or notifications to district directors under national tax laws—and have filed an application 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) that do not require 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. 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 is granted upon application.
The National Tax Agency's Qualified Invoice Issuer Publication Site
explains 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, nor does it overlap with a Corporate Number. It is a unique number assigned to each business operator.
[Reference] "National Tax Agency: About the Corporate Number"
The "Basic Three Information" Items Available via the Corporate Number
From the Corporate Number, you can identify the "Basic Three Information" of the entity associated with that number.
- 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 the Individual Number (My Number), there are no restrictions on its scope of use. However, for non-juridical organizations, the consent of a representative or administrator is required for publication.
In addition to the Basic Three Information, the following information can also be obtained from the aforementioned site.
- Trade Name or Legal Name After Designation of Corporate Number
- Location of the Corporation
- Change History Information, etc.
- English Notation of the Corporation's Trade Name or Legal Name and Location
- Trade Name or Legal Name of the Corporation (Furigana)
The following information can be obtained from the change history details.
- Date of Corporate Number Designation
- Date of Change Occurrence (Reason for Change, Information Prior to Change)
To become a qualified invoice issuer (registered invoice issuer), you must submit an application. After review by the tax office, a "Registration Notification" will be sent once you are registered as a qualified invoice issuer.
[Reference] National Tax Agency Corporate Number Publication Site
