In Japan, businesses may need to include or retain various supporting documents when filing their VAT returns:
- Invoices:
Invoices that detail taxable sales and purchases should be kept to substantiate the amounts reported. - Receipts:
Receipts for expenses and business purchases where VAT has been paid should be retained to claim input VAT credits. - Import/Export Documentation:
Businesses involved in international trade should keep customs declarations and import/export invoices to support VAT claims. - Contracts and Agreements:
Significant contracts affecting VAT obligations, such as service agreements or long-term sales contracts, may need to be retained. - Accounting Records:
Comprehensive accounting records, including ledgers and journals, should back up the amounts declared in VAT returns. - Bank Statements:
Bank statements showing payments and receipts can help verify the financial transactions declared.
Although these documents may not need to be submitted with the VAT return itself, they must be available for inspection by the National Tax Agency (NTA) in the event of an audit. Consulting a Japanese tax professional can help ensure that your supporting documents are well-organized and align with VAT return requirements.
The information provided here is based on legislation as it stands on the date of publication and may not reflect subsequent changes. We advise clients to seek tailored professional advice before making any decisions based on this information.