Things to keep in mind when cancelling your invoice registration

You can cancel your invoice registration by submitting the notification form by the deadline.

However, there are cases where you may still be liable to pay consumption tax even if you cancel your invoice registration.

This depends on

・When you registered the invoice

・When you submitted the notification form

How the Invoice Registration Application Works

In order for a tax-exempt business to become a taxable business, it is necessary to submit a “Taxable Business Selection Notification” to the tax office.

In other words, in principle, we cannot become a taxable business with only an invoice registration application.

However, as an exception, between October 2023 and August 2029, it is possible to become a taxable business by simply submitting an invoice registration application.
(In effect, it has the same effect as submitting a taxable business selection notification)

If we becomes a taxable business by submitting a taxable business selection notification, we will be liable to pay consumption taxes until the end of the taxable period to which the day two years have passed since the date of registration belongs.
(The so-called two-year binding, or more than two years depending on the timing of registration)

However, as an exception, if we register during the taxable period including October 1, 2023, the two-year binding does not apply.
(It is like an exception to the exception)

This time, we will look at the specific differences between canceling an invoice registration

・If you register an invoice during 2023

・If you register an invoice after 2024

If you register your invoice in 2023

If you register an invoice in 2023, you will not be bound by the two-year rule as a taxable business as a special exception, so you can cancel your registration from the next tax period.

The procedure is to submit a “Notification of Request for Cancellation of Registration of Qualified Invoice Issuer” by the 15th day before the first day of the next tax period.
(12/17 for sole proprietors)　How to fill in the form

If you are not a taxpayer of consumption tax, such as your taxable sales two years prior to the next tax period being less than 10 million yen, you will become a tax-exempt business.

If you registered your invoice after 2024

If you register for invoices after 2024, the special exception will not apply and you will be bound by the two-year restriction as a taxable business.

The procedure is to submit a “Notification of Request for Cancellation of Registration as a Qualified Invoice Issuer” by 15 days before the first day of the next tax period.(12/17 for sole proprietors)

However, during the two-year restriction, you will continue to be liable to pay consumption tax even if you submit a cancellation notification.

Please note that if you cancel your registration during the taxable period when the two-year restriction cannot be lifted from registration, you will simply become a taxable business that cannot issue invoices.

Editor’s Note

This time, I have explained the points to keep in mind when canceling invoice registration.

Various special provisions apply when the invoice system is introduced.

It is essential to carefully examine each case and take appropriate measures.

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都築太郎税理士事務所/Tsuzuki Taro Tax Accountant Office

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