The invoice system will begin in October 2023. We would like to inform delegates, members, and interested parties of the response of the Japan Academy of Nursing Science (JANS) regarding this system.
　For details of the invoice system, please refer to the following page (PDF). (from the IRS website)
https://www.nta.go.jp/taxes/shiraberu/zeimokubetsu/shohi/keigenzeiritsu/pdf/0022001-174.pdf

　JANS has completed registration as a "Qualified Invoice Issuer". This invoice system is a new system regarding consumption tax. In principle, consumption tax is paid by subtracting the amount of consumption tax on purchases from the amount of consumption tax on sales. After the introduction of the invoice system, when expenses are paid to tax-exempt businesses that have not registered for invoice ("tax-exempt businesses"), they will no longer be included in the consumption tax on purchases, and therefore cannot be deducted from the consumption tax on sales, which will increase the amount of consumption tax paid by JANS.
　However, most of JANS's sales (income) are membership fees and participation fees for members of academic conferences, which are not subject to consumption tax (non-taxable), and the consumption tax on purchases is calculated using the specified revenue ratio. In addition, as a transitional measure of the invoice system, a certain percentage of consumption tax (80% from October 2005 to September 2026 and 50% from October 2026 to September 2029) can be deducted for the calculation of consumption tax on purchases from tax-exempt businesses for the time being, so we expect that the introduction of the invoice system will not have a significant impact on consumption tax increases.
　Our tax advisor estimates that the introduction of the invoice system will increase consumption tax payments by approximately 100,000 yen, although this will depend on the amount of gratuities and the number of occurrences.

　It is assumed that most of the businesses to which JANS pays expenses are corporations and are registered as "Qualified Invoice Issuers. On the other hand, it is assumed that most of the recipients of rewards for academic meetings and lectures at seminars, etc., are individuals and tax-exempt businesses. In this case, the consumption tax on gratuities cannot be included in the consumption tax on purchases in principle.
　For individuals who give lectures for a living, it is expected that the registration of qualified invoice issuing businesses will increase due to the large amount of lecture fees and the fact that the party paying the honorarium is a corporation such as an organization or a company.

　Based on the above, JANS will promote compliance with the invoice system. Specifically, for corporations, priority will be given to transactions with qualified invoice-issuing businesses as much as possible. For individuals, we will not give priority to businesses that issue qualified invoices, but will continue to do business with tax-exempt businesses in the same manner as before.