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12/15/2021

What are the three steps required to apply for registration of the invoice system?

From October 1, 2023, the qualified invoice system (so-called invoice system) will be introduced. In order to comply with the invoice system, you will need to register your company's information with the National Tax Agency and have a registration number issued. In addition, in order to issue a proper invoice at the time of enforcement, the application must be made by March 31, 2023 in principle. In this issue, we will explain the application for registration of this invoice system in three easy-to-understand steps.

Table of Contents

    What is the invoice system?

    First of all, the invoice system is a legal revision that, from the perspective of the accounting department, "increases the number of items to be included on invoices" and "increases the amount of consumption tax to be paid if the invoice does not include the items.

    Specifically, invoices will be required to include information such as "whether or not each item is subject to the reduced tax rate," "the total amount for each tax rate," and "the number of the business that issued the invoice.

    For more information, please click here: [Easy-to-understand explanation] What is the invoice system? What will happen to accounting work?

    In order to obtain this "issued business number," an application for registration with the National Tax Agency is required.
    In addition, by applying for registration with the National Tax Agency, you will be officially recognized as a business entity compliant with the invoice system (a qualified invoicing business entity).

    When do I need to submit the application for registration?

    In order to be registered from October 1, 2023, when the invoice system starts, an application must be filed by March 31, 2023, in principle.

    If you do not take action from the transactions after the system starts, it may affect your clients' purchase tax deductions. Therefore, we recommend that you complete the preparation in advance and complete the application procedures as early as possible.

    Click here to download "[5-minute explanation] Introduction to the invoice system - 8 points explained in an easy-to-understand manner

    Three steps required to apply for registration of the invoice system

    To apply for registration under the invoice system, the following three steps must be taken.

    STEP1: Prepare an application form

    First, download and fill out the application form. You can also apply electronically instead of on paper.

    Click here to download the application form: National Tax Agency's dedicated website "Download Application Form"
    Click here to learn more about electronic application: National Tax Agency's dedicated website "About Electronic Application"

    STEP2: Submit to the IRS

    Once you have filled out the application form, submit it to the National Tax Agency.
    If you apply by paper, send the application to the "Invoice Registration Center" in your area of jurisdiction.

    For application procedures by mail, click here: National Tax Agency dedicated website "Application Procedures for Registration by Mail"

    STEP3: Notify business partners

    The registration number and the method of delivery and receipt will be communicated to business partners with whom you conduct continuous transactions.
    It is convenient to receive the registration notice electronically at this time.

    Click here for the registration notice by electronic data: National Tax Agency's dedicated website "Registration Notice by Electronic Data".

    Click here to download "[5-minute explanation] Introduction to the invoice system - 8 points explained in an easy-to-understand manner

    How many companies have already responded to the registration application?

    So far, we have explained the three steps required to apply for registration.
    So, how many companies have actually completed the registration process? According to our survey of companies in various industries and business categories, approximately 89% of companies have already completed the application process. Most companies have already completed the registration process.

    The report includes not only information on the status of compliance, but also information on the progress of system support, policies for dealing with suppliers, and other information on the status of each company.

    Click here to download the "2022 Invoice System Corporate Fact-Finding Survey Report

    Check the system together with registration.

    Lastly, we would like to talk about the items to be checked before registration.
    It is of course necessary to apply for registration. However, before doing so, it is necessary to check whether the core system or accounting system used in your company is compatible with the invoice system.
    In particular, since the introduction of the invoice system will affect a very wide range of business operations, including invoicing, supplier management, and tax reporting, we recommend that you start checking whether your system is compatible with the system as soon as possible.

    ERP package "HUE" for major companies HUE, an ERP package for major companies, not only supports the invoice system, but also participates in the "Digital Invoice Promotion Council" to promote the spread and promotion of electronic invoicing in the future, enabling it to keep up with the latest trends.


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    The information in this article is based on the laws and regulations as of December 1, 2021. The information in this article is based on laws and regulations as of December 1, 2021, and is subject to change in accordance with laws and regulations to be promulgated in the future.