Invoicing as a Freelancer in Japan

A freelancer in Japan who is registered as a qualified invoice issuer must put six things on every invoice (tekikaku seikyūsho): your name and registration number, the transaction date, what you supplied, the total per tax rate with the rate applied, the consumption tax per rate, and your client's name. If you stay unregistered, you can still send a normal invoice, just not a qualified one. For fees such as design, writing or lectures, Japanese companies usually withhold 10.21% income tax on the first ¥1,000,000 and pay you the rest.

This guide is for English-speaking designers, writers, developers and translators working as sole proprietors (kojin jigyōnushi) in Japan. It covers each rule and ends with a worked example. Need an invoice now? The free Japan invoice generator works without an account and gives you a PDF.

What a qualified invoice must show

Since October 2023, Japan's invoice system (inboisu seido) has set these six items, according to the National Tax Agency (NTA):

1. Your name or business name and your registration number
2. The transaction date
3. A description of what you supplied, marking any reduced-rate items
4. The total per tax rate (with or without tax) and the rate applied
5. The consumption tax per rate
6. The name of the client receiving the invoice

Almost all freelance work is at the 10% standard rate. If you also bill items at the 8% reduced rate, such as food and drink, flag them with a symbol like ※ and add a note: "※ = reduced-rate item".

These aren't legal requirements, but every Japanese accounts team expects them:

• An invoice number, for example 2026-0012.
• A payment due date and bank details: bank, branch, account type (futsū = ordinary), account number and the account holder's name in katakana.
• Who pays the transfer fee (furikomi tesūryō). Settle it in the contract or on the invoice, or you may receive a few hundred yen less than you billed.

The registration number: "T" plus 13 digits

A company's number is "T" plus its corporate number. Everyone else, sole proprietors included, gets "T" plus a 13-digit number from the tax office. Copy it exactly as it appears on your registration notice.

Round the tax once per rate

If the consumption tax has a fraction of a yen, you round it once per tax rate per invoice. Rounding up, down or to the nearest yen are all accepted. Rounding each line and then adding the results is not.

Staying unregistered (tax-exempt)

If your taxable sales in the base period (for a sole proprietor, two years earlier) were ¥10,000,000 or less and other conditions are met, you're exempt from consumption tax unless you register. Then:

• You have no registration number, so you can't issue qualified invoices.
• You can still issue ordinary invoices with your name, date, description and amount.
• Your business clients can't deduct the full consumption tax on what they pay you.

Clients get a transitional deduction for purchases from unregistered sellers. According to the NTA's material on the fiscal 2026 tax reform, it steps down like this:

For tax periods starting on or after 1 October 2026, the transitional deduction also stops at ¥100 million a year of purchases from any single unregistered seller. Few freelancers reach that, but it's one reason clients ask whether you're registered.

The 20% and 30% special rules

Freelancers who were exempt and became taxable only because they registered can pay less consumption tax for a while:

• 20% rule (niwari tokurei): you pay 20% of the tax on your sales. It applies up to the tax period that includes 30 September 2026, which for a sole proprietor means the 2026 return.
• 30% rule (sanwari tokurei): new in the fiscal 2026 tax reform. Sole proprietors who became taxable by registering can pay 30% of the tax on sales in their 2027 and 2028 returns, if taxable sales in the base period were ¥10,000,000 or less. Companies can't use it.

Example: with ¥8,000,000 of sales before tax in 2027 (¥800,000 of consumption tax), the 30% rule means you pay ¥240,000. You choose these rules when you file; your invoices don't change.

Withholding tax: the 10.21% calculation

Companies that pay individuals for writing, design, lectures and similar work withhold income tax plus the reconstruction surtax and pay it to the state. The NTA's formula (Tax Answer No. 2795):

• Payment of ¥1,000,000 or less: amount × 10.21%
• Above ¥1,000,000: (amount − ¥1,000,000) × 20.42% + ¥102,100

Fractions of a yen are dropped. If your invoice shows the fee and the consumption tax separately, only the fee before tax is subject to withholding. If you write a single tax-inclusive amount, the tax gets withheld on too. Always show them separately.

You don't have to print the withholding on your invoice, but adding a "withholding tax" line and the "net amount to transfer" makes it much easier to match the payment.

Payment terms: the 60-day rule

Under Japan's Freelance Act, in force since 1 November 2024, a company that commissions work from a freelancer must set a payment date no later than 60 days after receiving the work, and as early as possible. The Japan Fair Trade Commission says wording like "by the 10th of next month" doesn't fix a date, and a client can't delay a set payment date because your invoice hasn't arrived.

Write a specific due date on the invoice, such as 31 December 2026. If a payment is late, our late payment email templates help you chase it politely.

Worked example

Hanako Sato, a registered designer, designs a website in November for ¥300,000 before tax.

• Invoice number: 2026-0012
• Invoice date: 30 November 2026 · Transaction date: 28 November 2026 (delivery)
• From: Hanako Sato · Registration number T1234567890123
• To: Sample Co., Ltd.
• Description: Website design (home page and five inner pages)

• Due date: 31 December 2026
• Bank: ○○ Bank, △△ branch, ordinary account 1234567, サトウ ハナコ

The withholding is calculated on the ¥300,000 fee only. On the tax-inclusive ¥330,000 it would be ¥33,693, which is ¥3,063 more held back.

Invoicing in Japan with KipBill

You can make this invoice in the free generator without signing up. If you bill every month, a free KipBill account keeps clients, numbering and history in one place:

• Registration number: in settings, enter T1234567890123 as your tax ID and change its label to 登録番号 (the default label for Japan is 法人番号, corporate number). The PDF prints the label and number.
• Tax per rate: set 10% or 8% on each line. The PDF shows the consumption tax per rate, and with more than one rate it also shows the amount each rate applies to.
• Withholding: add a 10.21% withholding to the invoice. It's calculated on the subtotal before tax and the PDF shows the net amount due. KipBill applies one rate, so check the figure yourself on a single payment above ¥1,000,000.
• Reduced-rate mark: type ※ in the line description and the note in the invoice notes.

KipBill doesn't file your consumption tax or income tax returns. File them with your accounting software or a zeirishi.

Create a free account to save invoices and send them by email. For the basics that apply everywhere, see our complete invoicing guide for freelancers.

FAQ

Can I send invoices if I'm not registered?

Yes. You can't issue a qualified invoice with a T-number, but an ordinary invoice with your name, date, description and amount is fine. From 1 October 2026 to 30 September 2028, your clients can deduct 70% of the consumption tax on it.

Is withholding calculated before or after consumption tax?

Before, as long as the invoice shows the fee and the tax separately. If it only shows a tax-inclusive amount, withholding applies to that amount.

Until when can I use the 20% rule?

Up to the tax period that includes 30 September 2026. For a sole proprietor that's the 2026 return; for 2027 and 2028, the 30% rule may apply.

Can I calculate consumption tax per line?

You can calculate per line, but fractions of a yen are rounded only once per rate on each invoice. Rounding each line and adding them up isn't allowed.

What due date should I put on my invoices?

For work commissioned by a company, no later than 60 days after you delivered it. Even with "end of month, paid end of next month" terms, check that you stay within 60 days, and write a specific date.