Service Sales

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
3. Invoice
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.

“From the early days of our company’s establishment, N & M have given us a fine service not just for monthly and annual accounting, payroll processing and tax filing, but for financial reporting to our head office. In addition, we greatly appreciate their detailed responses to the head office for any small query about reporting.

While the reporting schedule of overseas head office is sometimes very tight because it is out of consideration of Japanese holidays and other local schedule. Despite such a hard schedule, N & M have provided the service in time and it is a great reassurance to us.

As we can get a in-depth reply from their experienced staff even for a minor question, we can consult N & M about anything without hesitation. We have nothing to worry about daily accounting in general. N & M is a necessary partner for us to facilitate our business in Japan.”

Mr. Hiroshi Ohtaka, Representative Director
Bel Japon K.K.