Changes in Income for Tax-Exempt Businesses Following the Introduction of the Invoice System
Author: k2soExecutions: 2408
※ This library was created by a member. This site is not responsible for its content.
If the consumption tax is raised in October 2019, the invoice system will be introduced four years later. Since this will have a significant impact on the income of tax-exempt businesses, let’s run some estimates.
For “Sales Before the Tax Increase,” please enter your annual “sales including tax,” and for “Expenses Before the Tax Increase,” please enter your annual “expenses including tax.” Please do not include rent (this feature is planned for future implementation).
| Sales Following the Introduction of the Invoice System | yen |
| Expenses After the Tax Increase | yen |
| Current Income | yen |
| Income Following the Introduction of the Invoice System | yen |
| Changes in Income | yen |
| Income when a taxable business entity is selected | yen |
The term “tax” as used here refers exclusively to the consumption tax.
Other taxes, such as income tax, are not taken into account at all.
Furthermore, it is assumed that both sales and expenses remain unchanged on a pre-tax basis.
Please note that because the introduction of the invoice system will have a significant impact, there will be a long-term transitional period.
The results will not take effect immediately four years from now.
“Income when opting to be a taxable business operator” is not affected by tax increases or the invoice system (assuming prices can be passed on to customers).
*If your expenses are less than half of your sales, we recommend using the simplified tax system and filing a final consumption tax return. Under the simplified tax system, you can deduct half of the consumption tax on your sales (for service industries; this varies by industry). We plan to incorporate this in the calculations on this page as well.
Other taxes, such as income tax, are not taken into account at all.
Furthermore, it is assumed that both sales and expenses remain unchanged on a pre-tax basis.
Please note that because the introduction of the invoice system will have a significant impact, there will be a long-term transitional period.
The results will not take effect immediately four years from now.
“Income when opting to be a taxable business operator” is not affected by tax increases or the invoice system (assuming prices can be passed on to customers).
*If your expenses are less than half of your sales, we recommend using the simplified tax system and filing a final consumption tax return. Under the simplified tax system, you can deduct half of the consumption tax on your sales (for service industries; this varies by industry). We plan to incorporate this in the calculations on this page as well.
- Related links
No customer feedback for this calculation yet.