Japan Data Model based on PINT
November 29th, 2021

Koichiro (Kay) Okamoto
Chairperson, E-Invoice Promotion Association (EIPA) of Japan(Chief Executive Officer, Yayoi Co., Ltd.)© 2021 E-Invoice Promotion Association

Overview of E-Invoice Promotion Association (EIPA) Founded in July, 2020 by 10 founding members
 Infomart, MJS, MoneyForward, OBC, PCA, SAP, SkyCom, TKC, Tradeshift and Yayoi
 Yayoi was appointed as the chair of EIPA EIPA was founded to achieve the following Mission statement: “Develop and promote the standard specification of e-invoice in order to build

standardized e-invoice system that can be commonly and widely utilized by businesses in Japan”

 First, to enable businesses in Japan to comply with new regulatory requirement, tax compliant invoice,which will come into effect in Oct. 2023

 Second, but just as importantly, to enable businesses in Japan to drastically digitalize and streamline theirbusiness operations• Develop a standard specification so that e-invoices can be freely exchanged• E-invoice has to be structured data so that it can be digitally processed by the receiver EIPA has been attracting high level of attention, resulting in more than 100 members within a year
 132 members, mostly software vendors, as of today (Nov. 2021)

1© 2021 E-Invoice Promotion Association

Why PINT?
 Since Jan. 2021, EIPA and the Japanese government* have been working with OpenPeppol team todevelop Japanese specification that will meet Japanese legal/business requirements
 Basic idea was to minimize the Japanese specific extension while accommodating Japanese requirements
 In doing so, EIPA/OpenPeppol agreed to use PINT as the starting point of Japanese specification and thenwork to incorporate Japanese specification back into PINT Using PINT as the basis for Japanese specification made sense for the following reasons
 PINT is based on the BIS Billing 3.0, which is a compliant restriction (CIUS) of the EN 16931 but isgeneralized to accommodate international needs• e.g., VAT related business terms are generalized to TAX, Payment means business terms generalized or added tosupport most payment means, Repetition is increased for payment means…
 PINT is not necessarily bound by EN 16931 and can accommodate deviation from EN 16931 through“Shared”, “Aligned”, “Distinct” structure• Japanese requirements can be accommodated either ideally “Shared” or mostly “Aligned” but at least by “Distinct”*

2

Formerly the cabinet office, currently the digital agency© 2021 E-Invoice Promotion Association

Japanese requirements: Standard invoice vs. Summarized invoice
Standard invoice

Summarized invoice 1 delivery = 1 invoice N deliveries = 1 invoice Issue an invoice promptly after the delivery

DeliveryInvoicefor May 1for May 1

 Delivery note is typically issued for a delivery

and sometimes delivery note also works as aninvoice3

 An invoice is issued at the end of pre-determined period (such as month-end) bysummarizing deliveries within the period

納品書
納品書
納品書
納品書
分
6/1
Delivery
分
6/1
6/1分
分 31
6/1
for May

Invoicefor May

 To automate invoice processing, the receivershould be able to identify which delivery eachline of the invoice came from© 2021 E-Invoice Promotion Association

Requirement that will be accommodated with data model update #1
Business requirement

How to accommodate in JP PINT Summarized invoice should have a referenceto delivery notes at a line level Create 2 new data fields under newly created
ibg-36 “LINE DOCUMENT REFERENCE”

 To automate invoice processing, a buyer shouldbe able to verify the delivery for each line

• Because of the nature of a summarized invoice,there are multiple deliveries for an invoice• The buyer should be able to trace back each line toa delivery note

Delivery note
D002

SummarizedInvoiceLine 1: D001
Line 2: D002
Line 3: D003

Delivery noteD003
4

Business Term

Existing/New

ibg-36: LINE DOCUMENT REFERENCE

Newibt-188Invoice line document identifier

Newibt-189

Document type code

New In Japan, ibt-188 will be used for delivery note

Delivery noteD001

IDreference• ibt-189 will be “270” (UNCL1001 document typefor delivery note) However, note that these data fields can be used

for any relevant related documents in othercountries by designating it with ibt-189© 2021 E-Invoice Promotion Association

Requirement that will be accommodated with data model update #2
Legal requirement

How to accommodate in JP PINT Tax amount has to be shown in JPY for eachtax category Create 3 new data fields under newly created
ibg-38 “TAX BREAKDOWN IN NATIONAL
CURRENCY”

1.

Invoice can be in USD even for Japanese
domestic invoices

2.

However, tax amount for each tax category has
to be shown in JPY

ID

Existing/New

ibg-37: TAX IN NATIONAL CURRENCY

New

ibt-111

Existing

AmountInvoice total TAX amount in accounting
currency$20.00ibg-38: TAX BREAKDOWN IN NATIONAL CURRENCY

NewTaxable amount (8%)$10.00ibt-190

TAX category tax amount in national
currency

New

Consumption tax (10%)$2.00(JPY200)

ibt-192

TAX category code

New

Consumption tax (8%)$0.80(JPY80)

ibt-193

TAX category rate

New

Taxable amount (10%)

5

Business Term

1.

2.

© 2021 E-Invoice Promotion Association

Requirement that will be accommodated with a local process ruleBusiness requirement

How to accommodate in JP PINT For a bank transfer in Japan, 4 data items are
required Instead of creating these 4 data fields, Define
a local process rule, which is to concatenate
them and put it into ibt-084 “Payment accountidentifier”#Data item

ExampleAlternative1

Bank nameMitsubishi UFJ Bank

4 digit code (“0005”)

2

Branch name

Akasaka-mitsuke

3 digit code (“064”)

3Account type

Regular

4Account type0012345

 ibt-084

000506410012345
Bank code(4 digit)

Branch code Account type
(3 digits)(1 digit)
1: Regular
2: Current

6© 2021 E-Invoice Promotion Association

Account number(7 digit)
Leading 0 paddingJapanese requirements: Summarized self-billing
Summarized invoice

Summarized self-billing Invoice is issued from a seller to a buyer

 Invoice is issued from a buyer to a seller

 An invoice is issued at the end of pre- An invoice (as a purchase list) is issued at thedetermined period from a seller to buyer

納品書
納品書
納品書
納品書
6/1
分
Delivery
分
6/1分
6/1
6/1
分 31
for May

InvoiceInvoicefor Mayfor May

To be examined in coming months
7BuyerSeller

Buyer

Seller

納品書
納品書
納品書
納品書
6/1
分
Delivery
分
6/1分
6/1
6/1
分 31
for Mayend of pre-determined period from a buyer toseller© 2021 E-Invoice Promotion AssociationJapanese requirements: Statement
InvoiceStatement Invoice claims payment

 Statement doesn’t claim payment

 Invoice is the basis for tax deduction

 Statement isn’t the basis for tax deduction

ButBut Invoice doesn’t contain account balance
information such as opening balance andamounts paid

 Statement shares account balance information
between a seller and a buyer
 Opening balance Amounts paid
 Amounts invoiced
 Ending balance

To be examined in coming months
8© 2021 E-Invoice Promotion Association