Educational guide
How to Invoice in Japan
The qualified invoice (適格請求書) regime decides whether buyers can credit consumption tax.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
Invoicing in Japan is governed by the Qualified Invoice System (適格請求書等保存方式), which took effect in October 2023 alongside the existing consumption tax (消費税) framework. Under this system, only businesses registered as Qualified Invoice Issuers with the National Tax Agency (NTA) can issue invoices that allow buyers to claim full input tax credits. The issuer's registration number — a T followed by 13 digits — must appear prominently on every invoice.
Japan's consumption tax has two rates: 10% standard and 8% reduced (applying to food, beverages excluding alcohol and dine-in meals, and newspaper subscriptions). Both rates may appear on a single invoice, and the qualified invoice format requires the taxable amount and consumption tax to be calculated and displayed separately for each rate. This per-rate breakdown is a mandatory element that distinguishes qualified invoices from previous invoice formats.
Payment by bank transfer (furikomi / 振込) is the standard B2B method in Japan, typically to a Japanese bank account. Invoices are issued in JPY, and payment terms of 30 to 60 days are common, usually aligned with month-end closing cycles (締め日). Japanese business culture places significant emphasis on punctuality, formality, and attention to detail — company seals (角印) are still commonly expected on invoices even in digital form. Meeting the buyer's month-end closing deadline is critical, as missing it delays payment by an entire billing cycle. Businesses must retain invoices for 7 years, or 10 years for corporations in certain situations. The transition to the Qualified Invoice System has significant implications for small businesses that were previously exempt from consumption tax, as many buyers now prefer or require dealing with registered issuers.
Invoice checklist: common fields in Japan
What buyers, auditors, and tax authorities often expect to see on a commercial invoice. “Required” reflects typical compliance expectations for registered businesses—not every sole trader scenario.
Seller Name & Address
Usually requiredBusiness name and address of the supplier. The Qualified Invoice Issuer registration number (T + 13 digits) must be prominently displayed as it is the buyer's key to claiming tax credits.
Buyer Name & Address
Usually requiredRequired for qualified invoices under the Invoice System. Include the buyer's corporate name and registered address. For inter-company transactions, the specific department or division may also be expected.
Invoice Number
Usually requiredA unique identifying number for tracking purposes. While no specific format is mandated by the NTA, sequential numbering is standard practice and aids reconciliation during audits.
Invoice Date
Usually requiredDate of invoice issuance and the date of the taxable transaction if different. Aligning the invoice date with the buyer's closing cycle (締め日) is important for timely payment processing.
Qualified Invoice Issuer Number
Usually requiredThe T + 13-digit registration number issued by the NTA upon successful application. Without this number, the buyer cannot claim input tax credits on consumption tax paid on the invoice.
Tax Breakdown
Usually requiredMust show the taxable amount and consumption tax amount separately for each applicable rate (10% and/or 8%). The per-rate breakdown is a mandatory qualified invoice element under the new system.
Currency
Usually requiredJPY for all domestic transactions. Even when a contract is denominated in foreign currency, the invoice must show JPY equivalents for consumption tax calculation and reporting purposes.
Payment Terms
Often optionalTypically 30-60 days, often structured around month-end closing. Many Japanese businesses pay on a fixed cycle (e.g., closing on the last day of the month, payment on the 25th of the following month).
Item-Level Tax Rate Identification
Usually requiredEach line item must indicate which consumption tax rate applies (10% or 8%). This is required under the qualified invoice format to enable accurate per-rate tax calculation.
Tax and regulatory themes in Japan
Consumption Tax (消費税)
Standard rate 10%, reduced rate 8% for food and beverages (excluding alcohol and dining in) and newspaper subscriptions. Both rates may appear on a single invoice.
Qualified Invoice System
Since October 2023, only invoices from registered issuers allow full input tax credits. Unregistered sellers (e.g., some small businesses) cannot issue qualifying invoices, limiting buyers' credit claims.
Withholding Tax on Services
Payments for certain professional services (legal, accounting, design) to individuals or specific entities require 10.21% withholding at source by the payer.
Popular payment methods in Japan
Methods commonly used for B2B and freelance payments. Availability depends on banks, platforms, and contract terms.
- Bank transfer (furikomi / 振込)
- Direct debit (automatic withdrawal)
- Credit cards (JCB, Visa, Mastercard)
- PayPay / LINE Pay
- Promissory notes (tegata — declining)
Business and cultural tips for Japan
- Japanese invoices (請求書) follow a distinct format: company seal (印鑑 or 角印) is still commonly expected even on PDFs.
- Month-end closing (締め日) is critical — submit invoices before the cutoff date or payment will be delayed by a full cycle.
- Display your Qualified Invoice Issuer number (T-number) prominently; buyers cannot claim consumption tax credits without it.
- Politeness matters: include a brief greeting and thank-you note in Japanese on invoices to domestic clients.
- Provide both the PDF invoice and supporting documentation (delivery notes, timesheets) in a single organized submission to meet Japanese AP expectations.
- For food and beverage businesses, clearly mark items at the 8% reduced rate versus 10% standard rate — incorrect classification is a common dispute source.
- Japanese corporations often require invoices to be addressed to a specific department (部署) and contact person. Confirm the correct addressee before submitting.
- Consider registering as a Qualified Invoice Issuer even if you are a small business — many buyers are now avoiding unregistered suppliers to protect their input tax credit claims.
Invoicing in Japan: common questions
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for Japan.
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