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GUIDE · INVOICE

Japan’s invoice system

インボイス制度Qualified invoices since October 1, 2023

Since October 2023, business customers in Japan need a qualified invoice to deduct consumption tax. Whether to register affects your prices, your tax and your customers.

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Updated October 26, 2026 · Checked against the official site by our editors

Started

2023

October 1

To issue

Register

With the tax office first

Number

T + digits

Printed on each invoice

Transition

2031

Partial deduction until end of Sept

What changed

  • To issue a qualified invoice, you must first register as a qualified invoice issuer with the tax office
  • Business customers generally need to keep qualified invoices to deduct the consumption tax they paid
  • Once registered, you file consumption tax returns as a taxable business
  • Your registration number is notified by the tax office and printed on your invoices

Should you register?

Usually yes if

  • Most of your customers are businesses
  • You are already a taxable business — for example a new company with ¥10 million or more in capital
  • Customers or platforms ask for your registration number

Think it through if

  • You sell mainly to consumers
  • You would otherwise be exempt from consumption tax
  • Your prices cannot absorb the tax

With the ¥30 million Business Manager capital rule, many foreign-owned companies are taxable from year one anyway — see Taxes for new companies.

Transition rules

Until the end of September 2031, buyers can still deduct a set share of consumption tax on purchases without qualified invoices. Businesses using the simplified tax system or the special 20% or 30% rules can deduct without keeping invoices.

Invoices and subsidies

Invoice-ready accounting and ordering software is a common purchase under the Digitalization & AI Subsidy. See also Accounting software.

FAQ

What is the invoice system in Japan?

Since October 1, 2023, business buyers generally need a qualified invoice from a registered issuer to deduct consumption tax. To issue one, a seller must register with the tax office.

Do I have to register for the invoice system?

No, registration is a choice. But business customers may prefer registered suppliers, and registering makes you a taxable business for consumption tax.

What happens if my supplier is not registered?

Until the end of September 2031, a transition rule lets buyers deduct a set share of the consumption tax even without a qualified invoice.

Sources

This page is a plain-English summary, not legal advice. The official Japanese guidelines always take priority.

NEED HELP IN ENGLISH?

Talk to an English-speaking expert

Zeirishi (tax accountants) who help foreign-owned companies with consumption tax and invoices — in English.

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