If you ever made a mistake in the amount or date on an invoice, did you think to yourself that it would be fine to simply use a correction stamp?

Unfortunately, this is the wrong way to fix an error. Under the Qualified Invoice System (also referred to simply as the “Invoice System”), corrections to invoices typically must be made by reissuing the invoice.

Invoices are important documents that serve as proof of transactions. Errors in their content can lead to risks such as scrutiny from the tax office or delays in payment, undermining trust in B2B transactions.

This article will explain the correct procedures when reissuing an invoice in Japan and some points to note when doing so. It will also discuss cross-check systems to prevent errors and the use of invoice management software.

What’s in this article?

• Invoices must be reissued, not corrected
  
• Key points when reissuing invoices
  
• Frequent mistakes when creating invoices
  
• How to handle mistakes when creating invoices
  
• How to prevent errors in invoice creation
  
• How Stripe Invoicing can help
  

Invoices must be reissued, not corrected

An invoice is not merely a document requesting payment; it’s a legal document providing details of a transaction.

Correcting errors in the amount, date, tax rate, etc., with a correction stamp creates the risk that the invoice could be judged as “potentially tampered with.”

Furthermore, under the Invoice System, input tax credits may not be recognized if the registration number, tax rate, or tax amount are not accurate.

In other words, even a minor clerical error could potentially impact the accounting procedures or tax filings of your business partner.

Therefore, the basic rule for correcting invoices is to reissue them with the correct information, rather than crossing out errors or applying correction stamps.

Key points when reissuing invoices

When reissuing an invoice, it’s important to clearly indicate the relationship between the original invoice and the new one. Stating the reason for the reissue and the nature of any error helps avoid confusion with business partners and reduces the likelihood of payment disputes.

Distinguish invoice numbers

Try to make it easy for the recipient to tell that the invoice is a reissue. If the original invoice was No. 1000, it would be best to assign a subnumber like No. 1000-1 to the reissued invoice or add a note such as “Reissued” to make it clear.

Confirm the date of issue

When reissuing an invoice, you might be unsure whether to use the original date or the date when it was reissued. In principle, the original date should not be changed. This is because changing the invoice’s date of issue may result in it being treated as a new invoice, potentially leading to duplicate billing.

Don’t forget to inform your business partner

When informing your business partner of the reason for reissuing the invoice, make sure to ask that they either discard the original invoice or replace it with the new one.

Frequent mistakes when creating invoices

Invoicing errors often stem from minor mistakes when entering data or from a lack of double-checking data. Common errors include incorrect amounts, dates, or addresses—and these mistakes are sometimes not noticed before invoices are sent out.

Errors in calculating the invoice amount or tax rate

Calculation errors involving amounts or tax rates are some of the most common invoice mistakes.

If the differentiation between “with tax” and “without tax” is wrong, or if rounding methods for fractional amounts are inconsistent, discrepancies in amounts may arise. Particular caution is required for industries handling the multiple consumption tax rates in Japan (8% and 10%), as errors are more likely to occur.

To help prevent errors, you can use templates with automatic calculation features and regularly updated tax rates.

Incorrect date of issue or payment due date

Incorrect date entries may affect closing dates or scheduled payment dates.

It’s also common to see cases where documents are sent with the system’s automatic date input setting still enabled.

Especially for month-end closing transactions, even a single day’s delay can alter accounting procedures and payment schedules, so be sure to verify dates before issuing invoices.

Mistakes with names or addresses

Be especially careful to avoid errors in your business partner’s company name, address, and contact person.

Be careful about mixing up “Ltd.,” “LLC,” “Inc.,” or “Co.” on your invoices; check to make sure you’re using the current and correct company name. Not only does a mistake cause the hassle of reissuing, but it may also leave an unpleasant impression on your business partner, especially against the background of Japanese business etiquette.

Always make sure to keep the official names of your business partners up-to-date.

How to handle mistakes when creating invoices

As mentioned earlier, errors can sometimes occur when creating invoices. To avoid legal risks when correcting amounts or other details on an invoice, it’s advisable to handle such corrections by reissuing the document.

Verify the nature of the error

If you notice a mistake after sending an invoice to a client, the first step is to identify which part contains the error.

Check which item is incorrect—whether it's the amount, tax rate, recipient name, date, bank account details, or invoice number.

In particular, errors in amounts or tax rates must be carefully verified as they directly impact tax office filings and payment amounts.

If the mistake involves transaction details or amounts rather than minor typos, the standard procedure is to reissue the document.

Reissue the invoice

After confirming the error, create a new invoice with the correct information.

When reissuing, assign a subnumber to the original invoice number or clearly mark it as “Reissued” to facilitate future management. It’s advisable to clearly mark the original invoice with a note such as “Reissued due to error” and manage it together with the reissued version. This ensures you can readily explain the situation during tax audits or accounting inspections.

Contact the business partner and send the reissued invoice

Send the reissued invoice to the business partner and clearly explain the reason for reissuing it.

In your email or letter, clearly state, "We have reissued the invoice because there was an error in the invoice we sent previously," and request that they replace the old invoice with the new one.

At this time, offering an apology along with an explanation for the invoice correction will be perceived as a sincere response, allowing you to maintain trust with your business partner.

How to prevent errors in invoice creation

Reissuing invoices is time-consuming and inconvenient for both you and your business partners. It's important to establish a system for checking invoices regularly and creating mechanisms to prevent errors.

Use invoicing software that supports the Invoice System

Using invoicing software that supports the Invoice System can help reduce errors in invoice creation.

The software’s automatic calculation feature prevents input mistakes in tax rates and total amounts, while registration numbers and tax classifications are automatically reflected.

Also, because the software records a history of the invoices that have been issued, it’s easy to track the history of reissued invoices if an error does occur.

Recently, use of all-in-one services such as Stripe Invoicing has become more common, allowing businesses to create and send Invoice System-compliant bills and manage online payments, all through the cloud.

Procedures like amount corrections and reissuance can also be completed paperlessly, resulting in greater accuracy and speed compared with paper invoices.

Implementing these kinds of tools makes it possible to reduce human error while simultaneously streamlining billing operations.

Create a checklist

Create a checklist containing all items to be verified, such as the recipient’s name, amount, date, and payee. Ensure this checklist is reviewed before sending out invoices. For added security, separate the roles of issuing and approving invoices to enforce a thorough cross-check process.

Document internal rules

Standardizing internal procedures, such as how invoice numbers are assigned and the rules for reissuing invoices, will ensure consistent handling even when personnel changes.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process, or get started today.