If you are in a service industry and provide service for a period over 1 month, you are in for a challenge. Managing the following items will be critical not to be target of in depth tax audits.
1. Service Contract
2. Proof of dates service was provided
4. Collection of Service Fee
Expect being challenged by the tax auditors when above information is not consistent with each other. Consistency is the key. Any unique treatment to a specific customer should be backed up with a logical explanation.
Service delivery date will be the timing for recognizing consumption tax in Japan,
In case you have a cut-off date not ending at month end, consult with your tax accountant. There are cases when adjustments are not necessary at year end.