The invoice system started on October 1, 2023. This system is designed to ensure that sellers and buyers have an accurate understanding of the amount of consumption tax, and is intended to ensure proper tax reporting and payment.
What is the invoice system?
The invoice system started on October 1, 2023. The purpose of this system is for sellers and buyers to accurately ascertain the amount of consumption tax, and to ensure proper tax reporting and payment. For example, credit card statements for credit card settlements and purchases of less than 30,000 yen were previously allowed a consumption tax credit for purchases without a receipt, but this special exception will be abolished in principle from October 2023. However, there will be no change for certain transactions such as public transportation fares, vending machines, postal and freight services, etc.
Taxi Industry and the Impact of the Invoice System
The introduction of the invoice system has had a significant impact on the taxi industry. In particular, when a taxi is used for business, an invoice must be kept even if it is less than 30,000 yen. In particular, some transactions that are difficult to be invoiced are exempted from the obligation to do so, but taxi fares are not an exception. Therefore, taxi operators will be required to issue invoices, and those who do not comply with this requirement will face an increased risk of decreased sales.
Initiatives of Heiwa Kanko Co., Ltd. which operates JumboTaxy.com
Heiwa Kanko Inc. provides services in compliance with the invoice system and has been registered as a Qualified Invoicing Business since December 2022. Our receipts are marked with a "Qualified Invoice Issuing Business Registration Number," allowing corporate clients to use our service with peace of mind. We also offer our own taxi ticket service (payment at the end of the month and at the end of the following month), which not only simplifies in-vehicle payment, but also eliminates complicated accounting procedures.
*Business-card sized tickets are an analog exchange, but they provide a cashless environment in all situations, from regular taxi use to jumbo taxi (wagon taxi) use. It also provides a "smooth flow" in such situations as when your phone runs out of charge or breaks. I'll write about how to use taxi tickets next time.
Private Taxis and the Invoice System and Its Impact on Businesses
The introduction of the invoice system may have a significant impact on private taxi operators. Businesses that do not support invoicing will be required to take measures to avoid a decrease in sales. Efforts have begun within the industry to help users distinguish between compliant and non-compliant taxis, such as by changing the color of "invoice-compliant" stickers and indicator lights (lamps).
Future Prospects for the Taxi Industry
After the introduction of the invoice system, the cab industry will face many changes in consumption tax obligations and business procedures. In particular, private taxi operators will need to rethink their future business strategies. As the demand for invoice-compliant taxis increases, it will be interesting to see what strategies non-compliant taxi operators will adopt.
summary
The introduction of the invoice system has brought many changes to the taxi industry. From companies that provide hire car services, such as Heiwa Kanko Co., Ltd. which operates JumboTaxy.com, to private cabs, the entire industry needs to adapt and look ahead to the new system. As consumers, we also need to adapt to the new system and make efforts to accurately report and pay consumption tax. Expectations are high for future trends in the cab industry and the changes in service that will accompany them.
