Why tax professionals oppose the “invoice system,” which is the same as the “miner card” and has not been properly discussed.
Huge administrative costs forced on small businesses for a 248 billion yen tax increase
What is expected to happen if the invoice system is introduced?
Small, tax-exempt businesses with annual sales of 10 million yen or less will not only have to pay consumption tax, but their administrative costs will be so enormous that some will have to go out of business.
Salaried workers and civil servants will also be affected. For example, expense reimbursement. Since the companies will not know whether or not to recognize receipts purchased from businesses that have not registered for invoicing, they will have to choose the right stores when purchasing necessary items, and when taking cabs, they may have to look out for the mark of a qualified invoicing business. Chairman Kazumasa Tomikawa).
A strange phenomenon that runs counter to the trend of the times is already taking place.
On “News Station” (broadcast on September 18), it was reported that stamp shops are suddenly becoming more and more active. It’s hard to write down every single invoice number by hand, so they prepare stamps.
Clients say, ‘You’ve made it more analog, haven’t you? They have been advocating digitalization and elimination of the stamp, but they are going backwards. I have no idea what direction the government wants to go in.
The reduced tax rate itself is not a measure for the weak, since high-income earners tend to spend more money on food and beverages, and therefore, high-income earners benefit more from the system.
Furthermore, it is said that the introduction of the invoice system will make up for the 1 trillion yen shortfall in tax revenue that was reduced by the introduction of the reduced tax rate, but the increase in tax revenue expected from the introduction of the invoice system is said to be around 248 billion yen.
In contrast, tax-exempt businesses will incur costs, such as hiring a tax accountant, in order to comply with the invoice system. It is said that tax-exempt businesses becoming taxable businesses will see an average tax increase of about 150,000 yen per business, but they will also have to pay additional costs for filing tax returns. I am certain that the public will feel a burden that exceeds the increase in tax revenue. (Mr. Takayuki Kamegawa, Chairperson of Sansei-Kai, Japan)
There are also reports that “the invoice system to be launched in October will cost
The other report states, “I believe that consumption tax delinquency will also increase. The largest amount of delinquency in tax revenue is consumption tax. If invoicing is introduced there, businesses that do not understand the system will be confused, and delinquency is expected to increase further. (Mr. Norimitsu Takahashi, Director of the Current Law Department)
Confusion over “tax returns” will inevitably hamper side businesses and start-ups.
Mr. Kamegawa also expressed his concern about how next year’s tax returns will be handled.
Many businesspeople are able to prepare a simple tax return with just pluses and minuses, but when it comes to a consumption tax return, they will probably have to install software.
I often assist at tax return filing sites, and when invoices are introduced, even if I am asked to prepare a consumption tax return on the spot, it is not something I can do immediately, so I am very worried when I imagine the confusion that will arise. I believe the confusion will be even greater than with the introduction of the My Number system.”
