This article will provide you with guidance on how to reconcile the fees and taxes displayed on the qualified tax invoices with amounts on your balance report. View sample invoice.

Reconciliation

To verify that the fees and taxes on your qualified tax invoice match your balance report, follow these steps:

1. Download the qualified tax invoice

• You can download the qualified tax invoice from the Documents section of your Dashboard (Settings > Reporting and documents > Documents). The monthly qualified tax invoice is generally available by the 10th of the next month.

2. Download balance report in the Dashboard

1. Go to Reports > Balances
2. Select the Date Range:
   • Make sure that you select the month that matches the Service Month of the qualified tax invoice that you are reviewing. The balance report will display data for the prior month by default, which is the correct selection if you are reviewing your most recent invoice. You can find the service month information on your invoice.
   • Set report time zone: Click the time zone button and select Coordinated Universal Time/UTC to match the time zone used for the qualified tax invoice.
3. Scroll down to Balance change from activity and select Download:
   • Report format: Select Itemised
   • Reporting category: Select All
   • Columns: Select All
4. Follow the prompts to access the downloaded report.

3. Match the amounts in the qualified tax invoice and the balance report

1. To calculate the total fee and tax in the balance report, add the following two amounts together:
   • For the lines where the reporting_category = 'fee', the column 'gross' is the fee amount excluding JCT and the column 'fee' is the amount of JCT. Please make sure that you exclude the JCT tax adjustment as described under point three below.  
   • For the remaining lines in the report (lines with a reporting_category other than 'fee'), use the amount in the 'fee' column, which is the fee including any applicable JCT for taxable fees.
2. To match the balance report, add the total fee and tax from the qualified tax invoice:
   (Total fees) + (JCT debited from your balance in the 'current month')
3. To match the JCT tax adjustment on your qualified tax invoice, download the balance report and select the date range for the month when the JCT tax adjustment was debited or credited to your account (this is shown on your qualified tax invoice). The JCT tax adjustment will be displayed in the balance report as:
   • reporting_category = 'fee',
   • column = 'gross',
   • description = ‘JCT adjustment for invoice number {invoice number}‘

Key notes

• Invoice-level JCT and transaction-level JCT
  • To comply with the National Tax Agency's Qualified Invoicing System rounding rules, Stripe will calculate the total JCT when the monthly qualified tax invoice is issued.
  • This is done by calculating and charging JCT at the same time that the respective product fees are charged ("transaction-level JCT"), which may vary by product.
  • At the beginning of the next month, when the invoices are issued, JCT is calculated at the invoice-level ("invoice-level JCT").
  • Where there is a difference between the transaction-level JCT and the invoice-level JCT, Stripe will debit or credit the difference to your account. Because the invoice-level JCT cannot be calculated until after month end, the difference will be debited from or credited to your account in the month that the invoice is issued.

• Date & Cut-off time for the monthly invoice
  • Stripe issues tax invoices based on the 'Created' date in UTC time zone for balance transactions. Balance transactions are changes to your Stripe account balance. You can view your balance transactions via API or by downloading your balance report from the Dashboard.
  • Because tax invoices include balance transactions based on the 'Created' date, adjustments to Stripe fees for refunds (also known as "true-ups") may be included in one month's tax invoice but refer to payments processed in the previous month.

Have a look at the articles below to learn more about taxes on Stripe fees in Japan and qualified invoices:

Taxes on Stripe fees for businesses in Japan

Understanding our qualified tax invoice for Stripe fees