Learn in the textbookTaxes and the Invoice System
DefinitionThe invoice system (インボイス制度) is the common name for the qualified invoice retention method, a consumption tax system under which buyers who receive and keep qualified invoices can claim the input tax credit.
ExplanationThe Japanese name インボイス comes from the English word "invoice", a bill that tells the other party the details and price of a transaction. When the seller issues a qualified invoice and the buyer keeps it, the buyer can subtract the consumption tax it paid from the amount it owes. Purchases from unregistered businesses come without a qualified invoice, so in principle the buyer cannot claim the input tax credit for them.
AnalogyIt is like a store coupon that is accepted only when it bears an official stamp. Only an invoice with a registration number lets you subtract the tax you paid.
Memory hookインボイス is simply the English word "invoice", matching the "invoice" part of the official name.