What to Do if You Forget to Collect Receipts for Business Expenses in Japan

【Koshida Accounting Firm Column Date:

Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

 

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

 

If you are unclear about treating forgetting to collect receipts in Japan, you might find this blog helpful.

 

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Receipts and similar proofs of purchase are generally required

 

When classifying an expense as a business expenditure, it’s generally necessary to keep proof, such as receipts or bank transaction records, to confirm the payment. During tax audits, these documents will be reviewed by the tax officers.

 

In practice

If you occasionally forget to collect a receipt, it’s often acceptable to use a note containing the payee’s details, date, amount, and purpose as a substitute. However, if this happens frequently or involves large amounts, it could become an issue during a tax audit. Tax audits for consumption tax are conducted more strictly, so there’s a higher risk of disapproval. In case of large amounts, it is recommended to request a re-issuance of the receipt.

 

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