What is the Electronic Books Preservation Act?
The Electronic Books Preservation Act establishes rules for storing accounting books and documents electronically. As of January 2024, electronic transaction data (invoices and receipts received via email or web) must be stored electronically.
Three Categories of Electronic Storage
Electronic Transaction Data
(Mandatory)Invoices and receipts received via email or web
Examples: Receipts from e-commerce sites, PDF invoices attached to emails, Cloud service statements
Electronic storage mandatory from January 2024. Paper storage not allowed.
Scanned Documents
Paper documents scanned or photographed for storage
Examples: Paper receipts, Paper invoices, Paper contracts
Optional. Not required if keeping paper originals.
Electronic Books
Journals and ledgers created in accounting software
Examples: Journal, General ledger, Sales/purchase records
Optional. Tax benefits available if meeting "excellent electronic book" requirements.
Electronic Storage Requirements
Timestamp Requirements(Important)
Electronic data must be timestamped within approximately 2 months + 7 business days of the transaction. Alternatively, use a system that retains edit/deletion history.
Ensuring Authenticity(Important)
Anti-tampering measures required: timestamps, system with edit/delete history, or system preventing modifications.
Search Functionality
Must be searchable by date, amount, and trading partner. Small businesses may be exempt from some requirements.
Readability
Data must be displayable on screen or printable promptly at any time.
Steps to Comply
Identify Target Documents
Check if you receive any electronic data via email or web. These require electronic storage.
Choose a Storage System
Select cloud services or software that comply with the law. Denpyo is compliant.
Establish Operational Rules
Define rules for when, who, and how electronic data will be stored.
Implement Storage
Save electronic data to the system promptly upon receipt. Mind timestamp requirements.
Denpyo is Compliant with the Law
- Timestamp functionality included
- Edit/deletion history recording
- Searchable by date, amount, and partner
- Secure cloud storage
Relief Measures for Small Businesses
Small businesses with revenue under 10 million yen are exempt from search functionality requirements. However, electronic data must still be organized by date and trading partner. Timestamp requirements may also be waived if data can be submitted upon request from the tax office.
