Consumption Tax Adjustment on the Change of Use of Fixed Assets
FY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
2021/08/25 1 min read

From October 1, 2023, the qualified invoice preservation method will be introduced as a way of the purchase tax credit of the consumption tax to correspond to the multiple consumption tax rates.
Under the method, the preservation of "qualified invoices" issued by "qualified invoice issuers" will be a requirement for the purchase tax credit.
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FY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
Under Japan’s consumption tax rules, input tax credits for "adjustable fixed assets" are credited upon acquisition. However, if the use of assets changes within three years, an adjustment is required.
Revenue recognition is a key performance metric affecting financial figures. This article explores examples of differences between accounting and tax treatment in Japan.
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