Qualified Invoice Issuer: What English Teachers Need to Know

Sep 14, 2023

You may have heard from your company by now about QII (Qualified Invoice Issuer), a new system that allows companies to handle their own taxes. But why is your company asking you to enroll? And is it a good deal for English teachers?

What is QII?
QII stands for “Qualified Invoice Issuer.” It is a system where individuals and companies are authorized by the government to issue invoices and collect consumption tax (Japan’s equivalent of sales tax) on their own behalf. This means that those who join QII will no longer need to rely on third parties to handle their taxes.

Enrolling in QII as an Individual
Enrolling in QII as an individual, such as an English teacher, means taking on the responsibility of handling your own taxes. This includes issuing invoices for your services and collecting consumption tax when required.
For companies, enrolling in QII can have several advantages, such as reduced tax rates through the 2% Special Exception, which allows businesses to pay a lower consumption tax rate. This can result in significant cost savings for them. However, it’s important to note that this particular benefit does not generally apply to individuals. This means that you will not necessarily be able to save money on your taxes by enrolling in QII.

What You Need to Be Careful Of
If you are considering enrolling in QII, there are some potential risks to be aware of:
Liability: If you do not properly handle your taxes under the QII system, you could be held liable.
Increased Responsibility: Enrolling in QII means taking on additional responsibilities for tax-related tasks, which can be time-consuming and confusing.

While there are some potential benefits to QII, for most English teachers, there are no clear advantages to enrolling. The decision of whether or not to enroll in QII is a personal one, and there is no one-size-fits-all answer. However, it is important to weigh the risks and benefits carefully before making a decision. If you are considering enrolling in QII, you should talk with a tax expert to get more information, or request a consultation with General Union.