The invoice system started on 1 October 2023. The system is designed to ensure that sellers and buyers have an accurate understanding of the amount of consumption tax, with the aim of proper declaration and tax payment. i...
What is the invoice system?
The invoice system started on 1 October 2023. The purpose of this system is to ensure that sellers and buyers have an accurate grasp of the amount of consumption tax, and to ensure proper declaration and payment of tax. 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 transport fares, vending machines, postal and freight services.
The 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 taxis are used for business purposes, an invoice must be kept even if it is less than 30 000 yen. In particular, certain transactions for which it is difficult to issue an invoice are exempt from the obligation to do so, but taxi fares are not an exception. Taxi operators will therefore be required to issue invoices, and operators who do not comply will face an increased risk of reduced sales.
Initiatives of Heiwa Kanko Corporation, which operates JumboTaxi.com
Heiwa Kanko Co. provides services compliant 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 customers to use our service with peace of mind. We also offer our own taxi tickets (receivable transactions/paid at the end of the month before the end of the following month), which not only simplify in-car payments, but also eliminate complicated accounting procedures.
*Business card-sized tickets are an analogue exchange, but they provide a cashless environment in all situations, from using a regular taxi to using a jumbo taxi (wagon taxi). They also provide a 'smooth flow' in such situations as when your phone runs out of charge or breaks. We'll write about how to use taxi tickets next time.
Private taxis and the invoicing system and its impact on operators.
The introduction of the invoice system could have a significant impact on private taxi operators. Businesses that do not support invoicing are required to take measures to avoid a decrease in sales. Initiatives have been initiated within the industry, such as 'invoice-compliant' stickers and changing the colour of indicator lights (lanterns) so that users can distinguish between compliant and non-compliant taxis.
Future prospects for the taxi industry.
Following the introduction of the invoice system, the taxi industry will face many changes in its 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 remains to be seen what strategies non-compliant taxis will adopt.
summary
The introduction of the invoice system has brought many changes to the taxi industry. From companies that provide hire services, such as Heiwa Kanko Co. which operates JumboTaxi.com, to private taxis, the entire industry needs to adapt and look ahead. As consumers, we also need to make efforts to adapt to the new system and ensure that we are able to accurately declare and pay consumption tax. Expectations are high for future developments in the taxi industry and the associated changes in services.
