Editorial: Fair trade must be ensured for Japan's new invoice taxation system September 21, 2023 (Mainichi Japan) Japanese version A sign for the National Tax Agency is seen in Tokyo's Chiyoda Ward in this file photo. (Mainichi/Atsushi Matsumoto) Japan is introducing a new invoice system for businesses to pay sales tax starting on Oct. 1. Its objective is to ensure fair taxation, but small businesses that will shoulder increased burdens have been voicing their concerns. When the sales tax rate was raised to 10% in 2019 スーパーコピー  a reduced rate of 8% was applied to essential goods such as food items. The new system will be applied to transactions between businesses using invoices itemizing tax payments for each tax rate. This will help correct tax calculations. It's also hoped to solve the problem of businesses keeping a portion of the taxes paid by consumers or clients as their profit rather than paying them to the government. The invoice system is well-established in European countries where reduced tax rates are common. That being said, the new system's potential impact will not be small on businesses with annual sales of 10 million yen (about $67,400) or less who have been exempted from paying sales tax. While it's possible for such businesses to remain exempt, their clients who will not be receiving an invoice will have to cover the exempted portion. Concerns remain that the businesses may lose clients or be hit with demands for discounts as a result. Meanwhile, if a business issues an invoice, it will be obligated to pay the taxes accordingly. Estimated annual payments may reach hundreds of thousands of yen (thousands in dollars) in some cases. They can try adding that cost onto their prices, but then they risk being rejected by their clients. In a worst-case scenario 新作ブランドコピー  some could be driven out of business as rising prices are already putting businesses in a tight spot. Many of the roughly 1.6 million businesses expected to fall under the new system are freelancers and subcontractors. Even if the system can ensure fair taxation コピーブランド  it's problematic if it ends up pushing vulnerable people out. The Japanese government must consider these people and extend every possible measure for them. There is a transitional measure in place for businesses that will start paying taxes ブランドコピー時計  including a three-year reduced rate. Tax payment procedures should be simplified, and it's crucial to make the system accessible to as many people as possible. We also must make sure that businesses that choose to be exempt from sales tax are not forced to make unfavorable deals ブランド通販  as this could be a violation of the anti-monopoly law. The Japan Fair Trade Commission needs to exercise thorough monitoring. Concerns from small businesses come from the distorted trade structure. Due to the power imbalance with their clients, even incorporating ballooning material costs into their prices is hard for them Prime Minister Fumio Kishida has indicated that his administration will work toward a smooth introduction of the new system. The government should step up support and make sure that there is a trading environment in which equality among businesses is guaranteed. Font Size SML Print Go to The Mainichi Home Page Related Articles 27% of voice actors in Japan may quit due to 'hellish choice' with new invoice system: poll New job sites charging small firms sky-high listing fees after short free periods