The Consumption Tax Law was introduced in 1989. Consumption tax is VAT, where a taxable enterprise pays the difference between the output taxes it collected and input taxes it paid during a tax period. In order to claim an input tax credit on taxable purchases, the requirement has been to maintain books and ledgers on taxable purchases and retain evidence such as invoices. From October 1, 2023, the input tax credit is only allowed for taxable purchases that
have qualified invoices issued by registered qualified invoice issuing enterprises with exceptional transition rules.