Do I need an invoice registration number to issue an invoice?

Registration is something you choose to apply for; it is not automatic. Once you register you receive a registration number, and registered numbers appear on the NTA's public lookup site. If you are not registered, your business customers can only claim a reduced transitional credit on what they buy from you (70% since 1 October 2026, down from 80%). Whether a specific document counts as a valid invoice for a specific client is worth confirming with a zeirishi.

My sales are under ¥10 million. Do I have to charge or file consumption tax?

Generally no, if your taxable sales in the base period (two years earlier for individuals) were ¥10 million or less. There are exceptions: you are registered as an invoice issuer, your taxable sales in the specified period (1 January to 30 June of the prior year) were over ¥10 million (salary paid can be used instead of sales for that test, but not for non-resident businesses), or you elected taxable status.

What happened to the 2-wari special rule (20% rule)?

It ends with tax periods that include 30 September 2026. For individuals, the 2026 return (filed by 31 March 2027) is the last one that can use it. It let businesses that became taxable only because they registered pay 20% of their output consumption tax.

Is there a replacement for the 2-wari special rule?

The 2026 tax reform adds a 3-wari rule for individual registered issuers who became taxable via registration and whose base-period taxable sales are ¥10 million or less. For the 2027 and 2028 returns, tax payable is 30% of output tax. You note it on the return, with no prior election. Corporations are not eligible.

How do I apply for an invoice registration number?

Apply through e-Tax software; the WEB version works on a PC, and individuals in Japan can also use a smartphone or tablet. You need an e-Tax user ID (16 digits, which you can obtain in the WEB version) and a My Number card. The notification arrives in your e-Tax message box. A mail application to the regional invoice registration center is also possible.

What does the 80% to 70% change mean for me as a freelancer?

It affects your clients, not your own return. Buyers who claim input tax credit on purchases from unregistered sellers get a transitional credit of 80%, which became 70% on 1 October 2026, then falls to 50% on 1 October 2028, 30% on 1 October 2030, and 0 on 1 October 2031. The lower it goes, the more an unregistered freelancer costs a client who claims input tax credit.

Do I charge consumption tax to overseas clients?

This is not something we can answer from the official pages we checked. Treatment of overseas clients and exports of services can be complicated, so ask a zeirishi.

Japan's invoice system (インボイス制度) and consumption tax for freelancers

Q: If I register as an invoice issuer, do I have to file consumption tax even though I'm under ¥10 million?

Yes. Registered invoice issuers file consumption tax even if their base-period sales are ¥10 million or less. If an exempt individual registers mid-year, transactions from the registration date to 31 December are reportable. Registering generally means filing for 2 years from registration even if you cancel.

The ¥10 million threshold, when to register, the end of the 2-wari rule, the new 3-wari rule, and how to apply through e-Tax.

Quick answer

Under ¥10 million in taxable sales (base period)? You are generally exempt from consumption tax, unless you register as an invoice issuer, your specified-period sales were over ¥10 million, or you elected taxable status.
Registering as an invoice issuer makes you a consumption tax filer, even under ¥10 million, and generally for at least 2 years.
The 2-wari special rule (20% rule) ends with the 2026 return for individuals (due 31 March 2027). A new 3-wari rule (30%) applies to individuals for the 2027 and 2028 returns.
Your clients' transitional credit on purchases from unregistered sellers dropped from 80% to 70% on 1 October 2026.
How to apply: through e-Tax.

This is general information, not tax advice. Confirm your situation with a zeirishi (certified tax accountant).

If you freelance in Japan, the invoice system (インボイス制度, qualified invoice system) is probably the most confusing part of consumption tax. This guide covers what the ¥10 million threshold means, when to register, what changes now that the 2-wari rule is ending, and how to apply. Everything below comes from National Tax Agency (NTA) pages, listed under Sources.

Step 1: Understand the ¥10 million threshold

Under NTA Tax Answer No. 6501, you are exempt from consumption tax if your taxable sales in the base period were ¥10 million or less. For an individual, the base period is two years earlier. The exemption does not apply if:

you are a registered invoice issuer;
your taxable sales in the specified period (1 January to 30 June of the prior year) were over ¥10 million (you can use salary paid instead of sales for this test, but not for non-resident businesses); or
you elected taxable status.

Step 2: Who has to file consumption tax

According to the NTA, these people file:

registered invoice issuers (even if their base-period sales are ¥10 million or less);
anyone whose base-period or specified-period sales were over ¥10 million;
anyone who elected taxable status.

If an exempt individual registers mid-year, transactions from the registration date to 31 December are reportable. Registering generally means filing for 2 years from registration, even if you cancel.

For 2026, the individual consumption tax return is due 31 March 2027 (Wednesday). Your income tax return is due earlier, on 15 March 2027. See our guide to side income and tax filing for foreign residents.

Step 3: Decide when to register

Registration is optional, and it has consequences, so decide before you apply:

It makes you a consumption tax filer even if you are under ¥10 million, generally for at least 2 years.
Your clients are affected. Since 1 October 2026, buyers' transitional credit on purchases from non-registered sellers is 70% (see Step 6).
Timing matters. An exempt business can specify a desired registration date at least 15 days after the application date. A new business can register back to the first day of the tax period (1 January for individuals) if it applies by the end of that period.
Special rules reduce the tax for people who became taxable only because they registered (Step 4).

Because registration usually binds you for 2 years, a short conversation with a zeirishi before applying is worth the cost.

Step 4: The 2-wari rule ends and the 3-wari rule begins

Details are on the NTA's invoice review page and in its PDF explainer.

2-wari special rule (ending)

Tax payable is 20% of the output consumption tax, for businesses that became taxable only because they registered.
It ends with tax periods that include 30 September 2026. For individuals, the 2026 return (filed by 31 March 2027) is the last.

3-wari special rule (new, from the 2026 reform)

Available to individual registered issuers who became taxable via registration, with base-period taxable sales of ¥10 million or less.
For the 2027 and 2028 returns, tax payable is 30% of output tax.
You note it on the return; there is no prior election.
Corporations are not eligible.

What comes after

You can file for simplified taxation (簡易課税) by the return deadline of the period after a 2-wari or 3-wari period, and it applies from that period.

Return year (individuals)	Special rule for newly taxable registrants
2026 (due 31 March 2027)	2-wari: 20% of output tax (last year)
2027 and 2028	3-wari: 30% of output tax

Step 5: How to apply (e-Tax)

The NTA's registration page describes the process:

Get an e-Tax user ID (16 digits). You can obtain it in the WEB version of e-Tax. Have your My Number card ready.
Apply through e-Tax software. The WEB version works on a PC, and individuals in Japan can also use a smartphone or tablet.
Choose your registration date. Exempt businesses can specify a desired date at least 15 days after the application date. New businesses can register back to the first day of the tax period (1 January for individuals) if they apply by the end of that period.
Look for the notification in your e-Tax message box. Your registration number will appear on the NTA public lookup site.

You can also apply by mail to the regional invoice registration center.

Step 6: The buyer-side change (80% to 70%)

When your clients buy from a non-registered seller, they can claim a transitional credit instead of the full input tax credit. According to the NTA PDF:

Period	Credit on purchases from non-registered sellers
Until 30 September 2026	80%
From 1 October 2026	70%
From 1 October 2028	50%
From 1 October 2030	30%
From 1 October 2031	0

As this falls, unregistered freelancers cost business clients who claim input tax credit more. How much that matters depends on your clients. If you price your work yourself, the Myjin day-rate calculator is a starting point, and the Kojin Stack tax deadlines section lists upcoming dates.

Overseas clients

We have not verified how consumption tax treats overseas clients or exports of services, so we are not making claims here. Ask a zeirishi.

Find an English-speaking tax accountant

Browse all in English-friendly finance services, or start with these tax and accounting professionals in the Myjin directory:

Sources

NTA Tax Answer No. 6501: the ¥10 million threshold
NTA: who files consumption tax
NTA: invoice registration
NTA: invoice system review (2-wari and 3-wari) and PDF
NTA PDF: buyers' transitional credit
NTA: return deadlines

This is general information, not tax advice. Confirm your situation with a zeirishi (certified tax accountant).