How to Invoice a Client in Japan

A complete guide to Consumption Tax (Shouhizei)-compliant invoicing

A Japanese invoice must be a Qualified Invoice (Tekikaku Invoice) under the Invoice System in force since October 2023: register with the National Tax Agency for a T-number (T plus 13 digits) and show it with your business name, the transaction date, a description of the supply, the recipient's name, and the taxable amount and consumption tax stated separately for each rate, 10% standard or 8% reduced for takeout food, non-alcoholic beverages and newspaper subscriptions.

Invoicing in Japan requires compliance with local Consumption Tax (Shouhizei) regulations and specific formatting standards. Whether you are a freelancer, small business owner, or agency, this guide covers everything you need to create professional, legally compliant invoices in Japan using JPY (¥).

Legal Requirements for Japan Invoices

✓Register as a Qualified Invoice Issuer (Tekikaku Invoice Hakkoujisha) with the National Tax Agency (NTA) to issue Qualified Invoices under the Invoice System (Tekikaku Invoice Seido) effective since October 2023. Your registration number (T-number) follows the format T + 13 digits (e.g., T1234567890123).
✓Include all mandatory fields on Qualified Invoices: your business name, T-number (registration number), transaction date, description of goods or services, the amount subject to each tax rate (10% and 8%) separated by rate, the consumption tax amount for each rate, and the recipient's name.
✓Distinguish between the standard consumption tax rate of 10% and the reduced rate (keigen zeiritsu) of 8% that applies to food and non-alcoholic beverages (excluding dining-in at restaurants) and newspaper subscriptions (delivered at least twice per week). Display each rate and its tax amount separately on the invoice.
✓Issue a Simplified Qualified Invoice (Tekikaku Kanigata Invoice) if you operate in retail, food service, taxi, or similar industries. Simplified invoices do not require the recipient's name but must include all other mandatory fields plus either the tax-inclusive amount or the tax amount for each rate.
✓Comply with the National Tax Agency's electronic record-keeping requirements under the Electronic Books Preservation Act (Denshi Chobo Hozon Hou) if you send or receive invoices electronically. Electronic invoices must be stored in a searchable format with timestamp verification.
✓Account for withholding tax (gensenchoushuuzei) when invoicing as a freelancer or individual contractor. The payer is generally required to withhold 10.21% on payments up to JPY 1,000,000 and 20.42% on amounts exceeding JPY 1,000,000 for specified services including writing, design, consulting, and professional services.
✓Retain all invoices and related documents for a minimum of seven years (ten years for corporations with capital exceeding JPY 100 million) from the day following the filing deadline for the relevant tax year.

Step-by-Step: Create an Invoice for Japan

Follow these steps to create a compliant Japan invoice with proper Consumption Tax (Shouhizei) handling.

Estimated time: About 10 minutes

1
Register as a Qualified Invoice Issuer
Submit form 'Tekikaku Invoice Hakkoujisha no Touroku Shinsei Sho' to the National Tax Agency to obtain your T-number (registration number). Registration is required to issue Qualified Invoices that allow your business clients to claim input tax credits. Your T-number and registered information will be published in the NTA's public registry.
2
Set Up Your Business Information
Enter your business name (in Japanese and optionally in English), T-number, business address, and contact information. If you use a hanko (seal/stamp) or inkan on business documents, note that while hanko is not legally required on invoices, it remains a common business practice in Japan and many clients expect to see it.
3
Determine Applicable Tax Rates
Identify which items on your invoice are subject to the standard 10% rate and which qualify for the reduced 8% rate (keigen zeiritsu). The reduced rate applies to food and non-alcoholic beverages for takeout or delivery (not dining-in), and to newspaper subscriptions delivered at least twice per week under a subscription agreement.
4
Add Client Details
Enter the recipient's business name and address. For Qualified Invoices, the recipient's name is mandatory. If the recipient is a Qualified Invoice Issuer, note their T-number for your records, though it is not required to appear on your invoice.
5
Create Line Items with Rate Classification
Add each product or service with a clear description, quantity, unit price, and the applicable consumption tax rate. Mark items subject to the reduced 8% rate with an asterisk or other indicator (e.g., '*' with a legend stating 'Items marked with * are subject to the 8% reduced rate').
6
Calculate and Display Consumption Tax by Rate
Calculate the taxable amount and consumption tax separately for each rate category. Display the total amount subject to 10%, the tax at 10%, the total amount subject to 8%, and the tax at 8%. The tax amount for each rate must be calculated on the aggregate taxable amount per rate, not per line item, to avoid rounding discrepancies.
7
Generate the Qualified Invoice PDF
Create a PDF invoice containing all mandatory fields for a Qualified Invoice: your business name and T-number, the transaction date, a description of goods or services, the taxable amount grouped by tax rate, the consumption tax amount for each rate, and the recipient's name. If applicable, include a note about withholding tax deductions.
8
File Consumption Tax Return
Report your consumption tax collected and input tax credits on your consumption tax return, due within two months after the end of your fiscal year (for corporations) or by March 31 following the calendar year (for individuals). Interim payments may be required if your prior-year tax liability exceeded JPY 480,000. File through e-Tax, the NTA's electronic filing system.

Tips for Invoicing in Japan

Non-registered businesses (those that have not obtained a T-number) cannot issue Qualified Invoices, which means their business clients cannot claim full input tax credits on purchases from them. During the transition period (through September 2029), buyers can still claim a partial credit: 80% through September 2026, then 50% through September 2029.
When both 10% and 8% rates apply to a single invoice, always calculate the consumption tax on the aggregate taxable amount for each rate rather than per individual line item. The NTA requires this aggregate calculation method, and per-item calculation can produce different results due to rounding, which may cause discrepancies during audits.
If you are a freelancer or individual providing professional services (writing, design, consulting, entertainment, etc.), your client is generally required to withhold income tax (gensenchoushuuzei) from your payment. Show the gross amount, withholding tax deduction, and net payment amount on your invoice to avoid confusion and ensure proper tax reporting.
While hanko (business seals) are not legally required on invoices, many Japanese businesses still consider them standard practice. If you regularly work with traditional Japanese companies, including your company's hanko or inkan on invoices can facilitate smoother business relationships and faster payment processing.
Store electronic invoices in compliance with the Electronic Books Preservation Act (Denshi Chobo Hozon Hou), which requires searchable storage by date, amount, and counterparty name, along with timestamp verification. Since January 2024, electronic transaction data (including emailed invoices) must be preserved in its original electronic format and cannot be printed and stored on paper alone.

Japan Invoicing FAQ

What is the Qualified Invoice System (Tekikaku Invoice Seido)?

The Qualified Invoice System, introduced in October 2023, requires businesses to issue Qualified Invoices (Tekikaku Invoice) that meet specific NTA-mandated format requirements in order for the recipient to claim consumption tax input credits. Only registered Qualified Invoice Issuers with a T-number can issue these invoices. The system replaced the previous account-based method and is designed to accurately track consumption tax at each transaction stage, particularly to distinguish between the 10% and 8% tax rates.

What is the reduced consumption tax rate and what does it cover?

The reduced rate (keigen zeiritsu) of 8% applies to two categories: (1) food and non-alcoholic beverages intended for takeout or delivery, excluding dining-in at restaurants, catering services, and alcoholic beverages; and (2) newspaper subscriptions based on a subscription agreement with delivery at least twice per week. All other taxable goods and services are subject to the standard 10% rate. Invoices must clearly distinguish items at each rate.

What happens if I do not register as a Qualified Invoice Issuer?

If you do not register, you cannot issue Qualified Invoices, and your business clients will not be able to claim full input tax credits on their purchases from you. This may make you less competitive, as clients effectively bear an additional tax cost. However, a transitional measure allows buyers to claim partial credits on purchases from non-registered suppliers: 80% of the tax through September 2026, and 50% from October 2026 through September 2029. After October 2029, no credit is available.

How does withholding tax (gensenchoushuuzei) work for freelancers?

When businesses pay individual freelancers or sole proprietors for specified services (including writing, editing, translation, design, photography, consulting, and entertainment), the payer must withhold income tax at source. The withholding rate is 10.21% on the payment amount up to JPY 1,000,000, and 20.42% on any amount exceeding JPY 1,000,000. The withheld tax is remitted to the NTA by the payer. Freelancers should show the gross amount, withholding tax, and net amount on their invoices and claim credit for the withheld tax on their annual income tax return.

Is a hanko or inkan required on invoices in Japan?

No, a hanko (seal/stamp) is not legally required on invoices under Japanese tax law or the Qualified Invoice System. The NTA does not list hanko as a mandatory invoice element. However, affixing a company hanko remains a widespread business custom in Japan, and many clients, particularly larger corporations and traditional businesses, may expect or request it. Digital invoices may use an electronic seal (denshiin) as an alternative. The decision to use hanko is a matter of business practice rather than legal obligation.