Specifying Qualified Invoice Issuer or Vendor Tax Exemption
You can specify that a vendor is exempt from consumption or purchase tax by checking the Qualified Invoice Issuer box on the vendor record. This box is only displayed on vendor records with Japan subsidiaries, and their corresponding transactions.
If you check Qualified Invoice Issuer, the vendor’s transactions (vendor bill and vendor credit) will automatically have the same box checked on their records. If you clear the box, the same box is automatically cleared on corresponding vendor transactions. You cannot clear the box on a vendor transaction unless you clear the box first on the vendor record.
After checking the Qualified Invoice Issuer box on a vendor record, the Tax Registration Number field, which becomes required. Then, you must enter the vendor’s Tax Registration Number, which is a 14-character alphanumeric series that begins with ‘T’ and followed by the 13-digit Japan corporate number. The same Tax Registration Number is automatically entered in the same field on corresponding vendor transactions.
The tax amount printed on an invoice issued by a vendor that is a Qualified Invoice Issuer, can be deducted as purchase tax from charged sales tax.
Vendor transactions with the Qualified Invoice Issuer box checked and the vendor Tax Registration Number specified, will be included in the results of the saved search for Purchase Transactions with Tax Information.
You can set or update values for Qualified Invoice Issuer and Tax Registration Number through CSV import.