On October 10, a new tax credit system, the "Invoice System," was launched to accurately grasp the amount of consumption tax paid. Since small businesses that register under the system will be newly obliged to pay taxes, the government will continue to seek understanding of the system by establishing transitional measures to reduce the burden and holding briefings for businesses.

An "invoice" is a new form of invoice or receipt issued by a transaction between businesses, stating 10% and 8%, the amount of consumption tax for each tax rate, etc.

The "invoice system" was launched on October 8 with the aim of accurately grasping the amount of tax paid, amid the introduction of a reduced consumption tax rate that keeps the consumption tax rate at 10% for some items such as food.

From now on, when a business operator receives a deduction or refund of the amount of consumption tax paid to a business partner through purchases, etc., it will be a condition that an invoice has been issued, and the business operator issuing the invoice must register with the government.

On the other hand, if a small business with annual sales of 1 million yen or less registers, it will be newly obliged to pay consumption tax to the country that was previously exempted.

In order to reduce the immediate burden on registered small businesses, the government has established a transitional measure to reduce the amount of consumption tax paid to the government for three years.

In addition, businesses that are not registered under the system and businesses that do business with them will be granted a certain percentage deduction from the amount of consumption tax payment for a total of six years.

Even after the 1000st, it is possible for businesses to register to issue invoices, and the government will continue to hold briefings and other events to seek understanding of the system.

Tokyo Private Taxi Cooperative Association Use different colors of "Andon"

Coinciding with the launch of the invoice system, the Tokyo Metropolitan Private Taxi Cooperative Association, of which about 6% of private taxis running in Tokyo are members, has been asking its member businesses to use different colors of "yellow" for taxis registered under the system and "white" for non-registered taxis, and "andon" installed on the vehicle.

This is so that people who intend to use taxis can distinguish whether they can receive a deduction for the consumption tax paid when they use it for business and try to process expenses.

In the case of this association, more than 10% of private taxis are registered with the invoice system.

On the other hand, it is not permissible to unfairly restrict the business of private taxis that have decided not to register under the system.

The union decided to respond after repeated consultations with the Japan Fair Trade Commission and others.

Takahiro Sakurai, president of the Tokyo Metropolitan Private Taxi Cooperative Association, said, "Since many of the member businesses are corporate customers, we have decided that some kind of response is necessary.

Picture book publisher "The company accepts the burden"

Doshinsha, a publisher of picture books and kamishibai in Bunkyo-ku, Tokyo, has released many works that are loved by generations, such as "Nai Nai Naibaa" and "Oire no Bōken."

If 8% of our business partners, such as artists, designers, and illustrators, have annual sales of 1000 million yen or less and register for the invoice system, they will be obliged to pay consumption tax, which was previously exempted.

At the beginning of this year, this company informed the business partner in writing that it would not request the issuance of invoices and would not change the transaction conditions even after the system started.

It is estimated that the amount of consumption tax that the company pays to the government will increase by about 3 million yen per year in the first three years, and finally by about 400 million yen per year in consideration of the implementation of transitional measures.

As sales of picture books and other products decline due to the declining birthrate, the company wants to reduce expenses because of uncertainty about the future.

Shuhei Goto, president of Doshinsha, said, "Even if the teachers are widely known, the income aspect is severe, and if the burden increases from now, there is a possibility that they will not be able to live. There are no drastic measures, but we would like to change our management structure so that it can withstand the burden."

Eiko Matsui, a writer who publishes kamishibai works from Doshinsha, said, "It seems that they told us to concentrate on creating works with peace of mind, and I felt that they were trying to protect us, and I had deep respect for them."

Expert: "New social changes that should be shared by many citizens"

Katsuhiko Sakai, a former employee of the National Tax Agency and a professor at Chuo University Law School who is familiar with the tax system and tax administration, said, "Consumers cannot remain "mere spectators" because the invoice system seems to have an impact on prices. The results of all business operators' worries and deliberations on whether or not to register for the system and how much consumption tax should be added accordingly will be reflected in future prices, etc., and it is necessary to understand these circumstances and recognize that this is a new social change that should be shared by many citizens."

He then said, "I expect that many issues will arise in the field, but it is necessary to move forward while solving them one by one, and the government needs to consider more flexible administrative and tax enforcement in the future."