In recent years, online shopping through ecommerce sites and apps has become an integral part of people’s daily lives. Online purchases are thriving for private and business purposes. Businesses receiving online orders via ecommerce sites must pay particular attention to the handling of receipts.

A receipt is an important document that serves as proof that the business has received payment from the customer. Online stores typically offer various payment methods, including online payments (e.g., credit card payments), cash on delivery (COD), and bank transfers. However, the handling of receipts can differ depending on the payment method used. Therefore, online store operators must understand the basics of receipts and respond appropriately.

In this article, we explain the requirements for issuing receipts that Japanese online stores need to know, including who is obligated to issue them, what must be included on them, and other general points.

What’s in this article?

• What are receipts?
  
• Is there an obligation to issue receipts for online shopping in Japan?
  
• Mandatory information on receipts for online stores in Japan
  
• How to issue receipts for online stores in Japan by payment method
  
• Points to note about receipts for online stores in Japan
  
• How Stripe Checkout can help
  

What are receipts?

A receipt is a document a business issues when it has provided goods or services to prove that it received payment. Recently, electronic receipts that are issued digitally have become increasingly common as a replacement for paper receipts. They are frequently adopted in the online store industry.

Receipts are important transaction documents that serve as accounting evidence and are also recognized as valid for tax returns and payments for both the issuer and receiver. In particular, under Japan’s current Invoice System, businesses must issue and retain invoices compliant with the Invoice System to apply purchase tax credits for consumption tax. Therefore, all businesses handling receipts should ensure they have a thorough understanding of this system.

We provide details regarding the recording of consumption tax on receipts below. For receipts, it is generally necessary to separately list the standard 10% tax rate and the reduced 8% tax rate in the breakdown.

Is there an obligation to issue receipts for online shopping in Japan?

Some online retailers or customers might wonder, “Are online stores required to issue receipts?” or “When are receipts not provided for online shopping?”

First, as a general rule, a receipt must be issued when requested by the customer. This is because Article 486 of Japan’s Civil Code stipulates that the payer of a sum has the right to request a receipt issued by the recipient of that sum. As a result, when a customer requests a receipt, the business is obligated to issue one.

The obligation to issue a receipt arises when the customer makes a payment and requests a receipt. In other words, the timing for issuing a receipt is, as a general rule, when the customer makes a payment.

When examining this principle further, it’s important to consider that with online shopping, the entity receiving payment directly from the customer is not necessarily the business that sold the goods.

When making a purchase online, the payment methods and the timing of the payment can vary significantly. Furthermore, with the exception of certain payment methods—such as bank transfers—the business might not receive payment directly from the customer, as in a physical store. Therefore, depending on the payment method, the obligation to issue receipts falls on the payment agent that collects the payment, not on the online store itself. This means the online store does not bear a direct obligation to issue receipts.

However, just as with physical stores, many customers consider it a common business practice to receive receipts issued by the business (i.e., the online store itself). Therefore, failing to accommodate requests for receipts from customers could potentially create a negative impression of the company’s services. It is important for businesses to be flexible when issuing receipts.

Documents that can serve as receipts

For online stores, other documents can be used in place of receipts. When providing these documents to customers, the business might not need to issue a separate receipt.

Additionally, for online payments such as credit cards, the confirmation email the customer receives immediately after completing payment can also serve as a substitute receipt. As electronic payments have become more commonplace, confirmation emails containing the payment date and time, transaction details, and payment amount are considered an important source of information. They can prove the exchange of money and serve the same purpose as a formal receipt.

Mandatory information on receipts for online stores in Japan

The following items and information must be included on receipts for online orders:

• Recipient name
  To prevent fraud, the issuer must always enter the recipient’s name. Furthermore, when using company names, it is important to use the full, official name. For instance, if the name includes “Limited,” it must appear in full and not be abbreviated to “Ltd.”
  
• Issuer name, address, and contact
  The issuer of the receipt should include the company’s official name, address, email address, and telephone number.
  
• Transaction date
  Record the date on which payment was received. This is not the date on which the goods were dispatched or delivered.
  
• Total amount
  Record the total amount received, including tax. When writing amounts, place the “¥” symbol before the number, insert commas every three digits, and include the “−” symbol after the number to make the figure easier to read and prevent tampering (e.g., “¥5,000−”).
  
• Remarks and disclaimers
  Record the transaction details (e.g., item or service descriptions) and payment method. To prevent tampering, it is common practice to end sentences with the Japanese phrase “shall be read as.” When listing multiple different items—due to limited space in the remarks section—categorize them (e.g., “books, office supplies”). However, if the remark or disclaimer alone cannot fully clarify the category, it can be helpful to attach a delivery note to make it clearer, and this is more considerate of the customer. Additionally, if the receipt includes items subject to the reduced tax rate, the document must include a note to indicate this, such as, “Reduced tax rate applies.”
  
• Breakdown
  Use the breakdown to record the total amounts categorized by tax rate, either including or excluding tax. Following the implementation of the Qualified Invoice System, it is now also necessary to include the applicable tax rate (e.g., 8% or 10%) separately for each tax rate, as well as the total consumption tax amount for each tax rate. Please note that the Invoice System also stipulates detailed requirements beyond just the consumption tax. Therefore, when creating receipts, be sure to thoroughly review the materials provided by the National Tax Agency. Depending on the industry, it could be possible to use simplified invoices instead of qualified invoices in certain cases.
  
• Statement that receipts cannot be reissued
  We provide more details on this later in the article. Customers can request a reissued receipt at a later date. It is important to inform customers in advance that receipts generally cannot be reissued. Consider using the margins of the document to do this. A good example of this is: “We apologize for the inconvenience, but receipts cannot be reissued. Please store this in a safe place. Please be advised that reissuing a receipt carries the risk of fraud or duplication.”
  

How to issue receipts for online stores in Japan by payment method

Below, we provide some key points to consider when issuing receipts for online stores. These differ depending on the payment method.

Credit card payments

When a customer uses a credit card for online shopping, the online store is generally not obligated to issue a receipt. Additionally, credit card statements are valid as substitute documents for receipts. Therefore, when a customer requests a receipt, it is important to explain this point to them. If a customer requires a receipt, it is advisable to issue one in response to their request.

When issuing receipts in such cases, it is important to include a statement in the remarks section to indicate that the transaction did not involve cash, such as, “Paid by credit card.” This prevents duplicate issuance of receipts and also proves that ​revenue stamps are not required, even for transactions exceeding ¥50,000 before tax. When delivering portable document format (PDF) receipts via email or cloud services, revenue stamps are not required for transactions exceeding ¥50,000.

Quick-response (QR) code payments

Similar to credit cards, when payment is made using a QR code, the online store is not obligated to issue a receipt. However, depending on the terms of the contract between the online store and the QR code payment processor, the online store could have received payment at the time the customer completes the transaction. If a QR code payment is processed under those contract terms, the online store must issue a receipt when the customer requests one. When issuing receipts for QR code payments, include a note in the remarks section that says, “Paid via [Payment Service Name].”

COD

For COD transactions, the delivery company collects payment upon delivery of the goods. Therefore, the online store is not obligated to issue a receipt. When a customer requests a receipt, inform them that the receipt issued by the delivery company for the amount they paid as COD serves as their receipt.

Similar to other payment methods, a receipt can be issued to meet the customer’s request. However, in that case, to prevent duplication of the receipt, it is necessary to retrieve the receipt issued for the COD amount from the customer before issuing it. The online retailer can prevent duplication by providing a receipt in exchange for the COD payment receipt already issued by the delivery company.

Please note that while cash transactions occur between the customer and the delivery company for COD payments, no cash transaction occurs between the customer and the online store. Therefore, revenue stamps are not required on receipts issued by the online store. However, the receipt must clearly state, “Payment made as COD on [Month] [Day], [Year]” in the remarks section.

Bank transfers

For bank transfers, the transfer statement or passbook details can serve as a receipt. It is also advisable to inform customers of this in advance. If the customer insists on a receipt, include the following note on the receipt to avoid duplication: “Payment received via bank transfer on [Month] [Day], [Year].”

Points to note about receipts for online stores in Japan

Here are some key points that online stores should understand before issuing receipts.

Shopping using points and coupons

When customers use points or coupons for purchases, the actual amount they pay is lower than the price of the item. Therefore, the receipt should display the actual amount received from the customer (i.e., the amount after deducting any points and coupons).

If the full amount is covered by points or coupons, the online store has not received payment for the product from the customer. In this case, it is generally acceptable not to issue a receipt. However, if a customer requests a receipt, be sure to clearly state in the remarks section: “The entire amount has been paid using points.”

Requests for reissue of a receipt

The recipient might request a reissue because of a loss of the original receipt. However, the online store cannot verify that the receipt was genuinely lost. The store must also consider that the reissue request could be made for fraudulent purposes. If two receipts with identical details are misused for fraudulent purposes—such as inflating expenses—the perpetrator of the fraud and the issuer of the receipts can be held liable.

Because there is no legal obligation to reissue receipts, the online store can politely decline such requests rather than simply reissuing one. Inform the other party that this is “to prevent fraud and duplication.” Instead, provide information about other documents that can be used in place of receipts.

When it is necessary to reissue a receipt due to unavoidable circumstances on the customer’s side, it is important to take the following precautions to avoid the suspicion of duplicated receipts by the tax office:

• Record the date the business received the request for reissue.
  
• Document the reason for the reissue, such as loss or damage.
  
• Note when the business retrieves the originally issued receipt or that collection is impossible due to loss.
  
• For requests received by email, convert the email to PDF for recordkeeping purposes.
  
• If any receipts still remain, collect them—even if they are only partially available—and send the reissued copies in exchange.
  
• Add a large “Reissued” notation on the receipt.
  
• Include a notation on the receipt clearly stating, “Reissued due to [reason].”
  
• Instead of issuing a receipt, issue a document renamed as either a “certificate of receipt” or a “certificate of payment.”
  

As online shopping becomes increasingly widespread, businesses involved in online retail operations must properly understand the role of receipts, documents that can substitute for receipts, and important considerations to ensure smooth receipt processing. For reissuing receipts, it is important to inform customers in advance that reissues are not possible. By considering the key points for preventing duplications, businesses can also help prevent future disputes. This can also help the business respond promptly to customer inquiries about receipts while reducing the effort needed to handle them.

How Stripe Checkout can help

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Checkout can help you:

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