In a recent announcement from Microsoft, it was revealed that from October 1, 2023, the tax invoice (Tekikaku Seikyusho) will be introduced by the Japan Tax Authority. This is a significant development for Independent Software Vendors (ISVs) selling in Japan, particularly for publishers and developers who are registered as qualified tax invoice issuers (Tekikaku Seikyusho Hakko Jigyosha).
Microsoft has clarified that publishers and developers will bear the sole responsibility for determining all compliance required for, and managing, End Customer Taxation. This includes a wide range of responsibilities such as registration, tax calculation, tax collection, tax remittance, validation of business status of customers, and providing tax invoices to customers.
It's important to note that Microsoft's role in this process is that of an agent or commissionaire of the publisher or developer. As such, Microsoft will continue to issue commercial invoices. However, these commercial invoices will not qualify as tax invoices (Tekikaku Seikyusho).
This change is expected to have a significant impact on the way ISVs conduct their business in Japan. It is therefore crucial for all relevant parties to be aware of this development and to take the necessary steps to ensure compliance with the new regulations.
Microsoft has recommended that all appropriate contacts within an organization, particularly those responsible and accountable for managing tax status and details, be informed of this change. This is to ensure that all necessary preparations are made well in advance of the October 1, 2023, deadline.
For those seeking more information on this matter, Microsoft has provided resources such as the Revenue dashboard in commercial marketplace analytics - Partner Center. This can be accessed through Microsoft Learn.
In case of any queries or concerns, Microsoft has advised ISVs to contact their Microsoft representative or submit a support request.
This development underscores the importance of staying abreast of changes in tax regulations, particularly for businesses operating in international markets. As always, we at Qloud Blog will continue to keep you updated on all such important announcements from Microsoft and other major players in the tech industry.
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