E-Invoicing in Japan

Malaysia is entering a new era of digital tax compliance with the phased rollout of a mandatory e-invoicing regime. Under the MyInvois platform, businesses must submit invoices for real-time validation by the tax authority, ensuring legal compliance before issuance. To stay ahead, companies should ensure their systems are ready to meet Malaysia’s structured e-invoicing requirements.

Country Situation

General Description

Japan introduced the qualified invoice system on 1 October 2023, as part of its consumption tax reform. Under this system, businesses that wish to claim input tax credits must issue and retain qualified invoices that meet specific legal requirements, including the supplier’s registration number and a breakdown of applicable tax rates.

While there is no legal obligation to use a specific electronic format, businesses may choose to exchange qualified invoices electronically via the Peppol network, which is promoted by the Digital Agency for standardised B2B and B2G transactions. The use of Peppol remains voluntary, and both paper and PDF formats are still permitted, provided they comply with the invoice content requirements.

Additionally, electronic invoices must be stored in accordance with the electronic book and record retention law, which requires secure, searchable, and readily accessible digital archiving, regardless of whether storage takes place inside or outside Japan.

FAQs

What is the Qualified invoice system (QIS)?

The QIS is a system introduced in Japan from 1 October 2023, requiring businesses to retain qualified invoices to claim input tax credits for consumption tax (VAT).

Who needs to issue qualified invoices?

Businesses that are registered as taxable suppliers with the National Tax Agency (NTA) and want their clients to claim input tax credits must issue qualified invoices.

What information must be included in a qualified invoice?

A qualified invoice must contain:
- Supplier’s registration number
- Description of goods/services
- Tax rate applied
- Consumption tax amount per rate
- Total amount
- Issuer and recipient names

Is it mandatory to use e-invoices under QIS?

No. The use of electronic invoices is voluntary. Qualified invoices can be issued in paper, PDF, or structured electronic formats (e.g., Peppol).

What happens if I don’t issue or receive qualified invoices?

If a business cannot present a qualified invoice, it may lose the right to deduct input consumption tax on that transaction.

Is Peppol e-invoicing mandatory in Japan?

No. Peppol use is entirely voluntary. Businesses may choose it to enhance automation and compliance but are not legally required to do so.

What format is used in Japan for Peppol invoices?

Japan uses a localised Peppol format called JP PINT, which is compliant with QIS requirements.

Who manages the Peppol framework in Japan?

The Digital Agency of Japan acts as the Peppol authority, overseeing the technical rules and certification of service providers.

Can businesses exchange e-invoices with the government?

Yes. Japan supports B2G e-invoicing via Peppol, although it is still optional and being gradually adopted.

What is the Electronic Record Retention Law (ERRL)?

The ERRL regulates how businesses in Japan must archived invoices and tax-related records electronically, ensuring integrity, accessibility, and audit readiness.

How long must e-invoices be archived in Japan?

E-invoices must be retained for 7 years (or 10 years in some cases, e.g., when blue return is not properly filed).

Is it allowed to archive e-invoices outside of Japan?

Yes, offshore storage is allowed if it complies with ERRL requirements (e.g., searchable, secure, accessible from Japan for audits).

Country Specs

Mandate Status	Voluntary
Mandate Scope	B2B, B2G
Model Type	Interoperability / Post-Audit
Government Entity	National Tax Agency (NTA)
Formats	UBL 2.1
Infrastructure / Platform	Peppol
E-signature Required	No
Key Deadlines	From 1 October 2023, Japan’s qualified invoice system requires businesses to issue and retain qualified invoices to claim input tax credits.
AR Mandatory	Voluntary for B2B and B2G flows
AP Mandatory	Voluntary for B2B and B2G flows
Peppol Available	Recommended but not required.
Domestic Transactions	Qualified invoices may be exchanged electronically via Peppol in B2B and B2G transactions, the use of Peppol remains voluntary.
Cross-border Transactions	No
Archiving Period	7 years (or 10 years in some cases, e.g., when blue return is not properly filed).
Archiving Abroad	Archiving e-invoices outside of Japan is accepted, provided it complies with the requirements of the electronic book and record retention law (ERRL).

Contact an expert

Feeling lost or need more info about this e-invoicing mandate? ecosio can help!

Our team of e-invoicing experts is ready to guide you through everything needed to stay compliant—not just with this mandate, but with all current and upcoming e-invoicing requirements worldwide.
Send us your questions. We’ll provide clear, actionable answers!

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