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　(Head Office: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereafter referred to as "WAP") has issued a report based on a questionnaire survey on how companies are preparing for and progressing with the consumption tax invoice system that will be introduced in October 2023. Most companies have already grasped the details of the system, and nearly 90% have completed registration as a qualified invoice issuing business. On the other hand, many companies, regardless of size, are still struggling to collect information on their business partners, such as registration numbers. WAP offers solutions to solve various problems related to the invoice system.

Click here to download the survey report

1. Both small and large companies are not able to collect information on suppliers

　More than half of the companies surveyed are familiar with the details of the invoice system and have already implemented some form of support. Many companies have already gathered information about the invoicing system and are in the process of implementing specific measures. 88.6% of companies responded that they have completed the application process for registration as a qualified invoicing company.

　On the other hand, only 1.4% of companies responded that they have completed the collection of registration numbers of their business partners, and 72.9% are still considering how to collect information on their business partners, indicating that they are still in the process of collecting information on their business partners. By size, all five companies with sales of less than 1 billion yen responded "considering" or "don't know," while 75-80% of those with sales of 1 billion yen or more have not yet begun collecting such information. It is clear that not only small and medium-sized companies, but also large companies with many employees are not making much progress in gathering information on their business partners.
　Since the deadline for application for registration is the end of March 2011, it is thought that a certain number of companies will start collecting information after all suppliers have been registered in order to reduce the cost of additional collection. Another factor is that some companies have thousands or tens of thousands of business partners, and it takes considerable time and effort to match their own list of business partners with the list of registered businesses published by the National Tax Agency.

2. Responding to unregistered suppliers on a case-by-case basis

　When the invoice system is introduced, companies that are not registered with the National Tax Agency as a qualified invoice issuing business will not be able to receive a consumption tax credit for purchases unless they have an invoice issued by a company registered with the Agency. When asked how they would deal with suppliers who do not register, 52.9% of the companies responded that they would "consider it on a case-by-case basis. On the other hand, more than 30% of the companies set rules or took uniform measures. The factors used to determine the response policy included "current transaction amount and size," "creditworthiness of credit checks and availability of alternative suppliers," and "status of price reductions. The introduction of the system may lead to a review of business partners, which may have an impact on corporate activities.

　The government has called for a review of business conditions with small businesses in conjunction with the implementation of the invoice system, saying, "While this in itself will not cause immediate problems, care should be taken to avoid any actions that would constitute 'abuse of a superior bargaining position.
https:// www.jftc.go.jp/dk/guideline/unyoukijun/invoice_qanda.html

3. Concerned about the burden on accounting/finance departments

　The top "things I find difficult" in the preparation stage before the system is applied (multiple responses) include creating/changing formats to suit qualified invoices, creating manuals, and reviewing business relationships. Even after the system is implemented, many respondents expressed concern about the burden on the accounting/finance departments in charge of checking receipts, invoices, and other vouchers received, transferring journal entries, and filing tax returns, as well as the burden on the field of inputting received vouchers.

　In addition, a transitional measure has been established for a certain period of time after the start of the system. Taxable purchases from companies that are not registered as a qualified invoicing business can be deducted by treating a certain percentage of the amount equivalent to the purchase tax as the purchase tax amount. In order to comply, there is a concern that the burden on accounting/finance departments will increase further, for example, in checking whether the contents of books and invoices meet such requirements.

Survey Overview
Name: Invoice System Company Fact-Finding Survey Report
Method: Online questionnaire survey
Period: September 30, 2022 - October 13, 2022
Geography: Nationwide
Target: Companies mainly from WAP's customer list

WAP's various solutions for smooth invoice handling from large to small

WAP provides total support solutions from accounting systems to invoice systems for the invoice system that companies are complying with. WAP provides total support solutions from accounting systems to invoicing systems for the invoicing systems that each company is working to comply with.

HUE Invoice Matching (Qualified Invoice Provider Data Matching Service)
This service allows you to easily assign the registration number of a qualified invoice provider issued by the National Tax Agency to the master information of your company's business partners.
The technology of "Sudachi", an open source software provided by WAP, automatically normalizes "Suzuki Shokai Inc." and "Suzuki Shokai" to the official name of "Suzuki Shokai Inc.

HUE Digital Invoice (Cloud invoice sending/receiving service)
This service allows you to receive and issue invoices through intuitive operations. It is compatible with the invoice system, including the creation of qualified invoices. Companies that have not yet implemented an accounting system, as well as those that have, can use this service at minimal cost while continuing to use their current system. It can also support sending and receiving of digital invoices compliant with international standards.
https://saas.worksap.co.jp/digitalinvoice/

HUE AC (Accounting system for major companies)
This is an accounting system for major companies that covers everything from input to output for financial accounting and consolidated accounts. It is fully compatible with the invoice system and covers handling of consumption tax fractions, qualified invoicing, accumulation calculations, and transitional measures. The system maintains a variety of input screens for invoice payment, expense reimbursement, and transfer slip entry, and it is possible to use only a portion of the system.
https://www.worksap.co.jp/services/financial/

About Works Applications Group

Since its establishment in 1996, Works Applications Group has been providing Products / Services mainly to major Japanese companies as Japan's first packaged software company for business applications. Based on the corporate philosophy of changing the concept of "work," making work more creative, increasing corporate productivity, and expanding corporate value, Works Applications Group aims for further development as a solution provider centered on ERP, to be a partner in promoting DX for small, medium, and start-up companies in addition to major corporations. We will continue to develop further as a solution provider with ERP at its core.

*Company names, product names and service names are trademarks or registered trademarks of their respective companies.
*The information in this release is current as of the date of publication, and is subject to change or withdrawal without notice. Please be aware that the forecasts and other forward-looking information in this release are based on uncertainties and may differ from actual results.