Japan Qualified Invoice System: T-Number and Invoice Rules

Quick answer: Japan's qualified invoice system, or invoice seido, started on October 1, 2023. Buyers generally claim consumption tax credit only with a qualified invoice from a registered issuer, which must show a T-number (T plus 13 digits), amounts and tax split by the 10% and 8% rates, and the customer's name. From October 2026, purchases from unregistered suppliers get a 70% transitional credit.

If you sell to Japanese businesses, or freelance for Japanese clients, the Japan qualified invoice system decides whether your customers can recover the consumption tax on your bill. That makes it a commercial issue as much as a tax one: clients increasingly ask suppliers for a registration number before they pay. This guide explains who needs a T-number, exactly what a qualified invoice must contain, how the transitional measures changed in 2026, and how to calculate the tax correctly. For a quick overview of other countries, see our invoice requirements by country guide, or start a draft in our invoice generator.

Note: This is general information, not tax advice. Japanese consumption tax has many special rules, so confirm your position with the National Tax Agency or a Japanese tax accountant (zeirishi).

What the qualified invoice system is and why it exists

Japan's consumption tax has two rates: a standard 10% and a reduced 8% that applies mainly to food and drink (other than alcohol and dining out) and certain newspaper subscriptions. The qualified invoice-based method was introduced to make sure input tax credits match tax actually charged at each rate. In the NTA's words, it is "a method to receive tax credit for consumption tax on purchases corresponding to multiple tax rates."

Under the system, a buyer's input tax credit generally requires two things: ledgers containing certain items, and qualified invoices issued by a registered qualified invoice issuer. Purchases from unregistered businesses and consumers are not eligible for full credit, which is why registration has become so important for suppliers.

Who needs to register for a T-number

Registration is voluntary in law but often necessary in practice.

Your situation	Do you need a T-number?	Why
Taxable business selling to Japanese businesses	Usually yes	Customers need qualified invoices for full credit
Small tax-exempt business (base-period taxable sales of 10 million yen or less) selling to businesses	Commercial choice	Registering makes you a taxpayer, but clients may prefer registered suppliers
Business selling only to consumers	Often no	Consumers do not claim input credit
Foreign business with Japanese business customers	Possibly	Depends on whether your supplies are taxable in Japan
Foreign freelancer billing a Japanese company for work done abroad	Often no	Services performed outside Japan are often outside Japanese consumption tax; check your case

One important consequence: the NTA notes that once registered, you must file consumption tax returns even if your base-period taxable sales are below 10 million yen. Registration removes the small business exemption.

How the T-number is structured

The registration number is the letter T followed by 13 digits. Corporations use T plus their existing 13-digit corporate number. Sole proprietors get a separate 13-digit number that is not their personal My Number. Every registered issuer appears on the NTA's public qualified invoice issuer lookup site, where customers can check a number before paying. For a broader look at displaying tax IDs, see our guide to the tax ID on an invoice.

How to register as a qualified invoice issuer

1. Decide whether to register, weighing the extra consumption tax you will pay against the risk of losing clients who need qualified invoices.
2. Prepare the application for registration as a qualified invoice issuer. Domestic businesses usually file online through e-Tax; paper filing to the NTA's invoice registration centre is also possible.
3. Check special cases: tax-exempt businesses can register partway through a year, and foreign businesses may need a tax representative in Japan.
4. Receive your registration notice with your T-number and effective date.
5. Confirm your listing on the NTA's public lookup site.
6. Update invoice templates to show the T-number and split amounts by rate, then tell your customers.

What a qualified invoice must include

The NTA's English guidance lists the items below. There is no prescribed form: any document, including a handwritten one, counts as a qualified invoice if these items appear on it, whether it is called an invoice, receipt or delivery note.

Item	Qualified invoice	Simplified qualified invoice
Issuer's name and registration number (T-number)	Required	Required
Transaction date	Required	Required
Transaction details, marking reduced-rate items	Required	Required
Consideration totalled separately by tax rate (tax-exclusive or inclusive)	Required, with the applicable rate	Required
Consumption tax amount by rate	Required	Either the tax amount or the applicable rate (or both)
Customer's name	Required	Not required

Simplified qualified invoices are for businesses that sell to many unspecified people, such as retailers, restaurants and taxi operators. The full rules are in the NTA's English guide to the qualified invoice-based method.

Registered issuers must issue a qualified invoice when a taxable business customer asks for one, and keep a copy. If you need to fix an error, issue a corrected qualified invoice; see our general guide on how to correct an invoice.

Worked example: calculating tax on a qualified invoice

A Tokyo caterer invoices a registered corporate client for a staff event:

Line	Rate	Amount (tax-exclusive)
Event planning service	10%	100,000 yen
Packaged food for takeaway (reduced rate, marked)	8%	5,000 yen

• 10% subtotal: 100,000 yen, consumption tax 100,000 x 10% = 10,000 yen
• 8% subtotal: 5,000 yen, consumption tax 5,000 x 8% = 400 yen
• Total tax: 10,000 + 400 = 10,400 yen
• Invoice total: 100,000 + 5,000 + 10,400 = 115,400 yen

The invoice must show both subtotals, both rates and both tax amounts, plus the caterer's T-number and the client's name. Note the rounding rule: the NTA allows rounding only once per tax rate per invoice, using round up, round down or round half up. Total each rate first, then round the tax. Our general guide on how to calculate VAT explains the same add-tax formulas.

Transitional measures after the FY2026 tax reform

To soften the change, Japan allows buyers to deduct part of the deemed tax on purchases from unregistered suppliers. The original schedule was 80% to September 30, 2026, then 50% to September 30, 2029. The NTA's invoice system review page (in Japanese) sets out the revised schedule from the FY2026 tax reform:

Purchase period	Deductible share of deemed tax
October 1, 2023 to September 30, 2026	80%
October 1, 2026 to September 30, 2028	70%
October 1, 2028 to September 30, 2030	50%
October 1, 2030 to September 30, 2031	30%
From October 1, 2031	0%

The reform also cuts the annual cap on purchases from a single unregistered supplier that can use the measure, from 1 billion yen to 100 million yen (tax-inclusive), for tax periods starting on or after October 1, 2026. To use the transitional credit, buyers must keep an invoice with the usual details and note in their ledger that the special measure applies.

Worked example: what an unregistered supplier costs the buyer

A company buys design work for 110,000 yen tax-inclusive from an unregistered freelancer in November 2026. Deemed tax = 110,000 x 10/110 = 10,000 yen. At 70%, the buyer can deduct 7,000 yen and loses 3,000 yen of credit. Under the old 80% rule it would have lost 2,000 yen. That gap is why many clients ask suppliers to register or negotiate a lower price.

Relief for small sellers and small purchases

• 20% special measure: small businesses that registered from tax-exempt status could pay just 20% of output tax. It ends with the tax period that includes September 30, 2026.
• New 30% special measure: qualifying sole proprietors can pay 30% of output tax for their 2027 and 2028 returns. Corporations are excluded.
• Small-amount purchases: businesses with taxable sales of 100 million yen or less in the reference period (or 50 million yen or less in a specified period) can claim credit on purchases under 10,000 yen tax-inclusive per transaction with only ledger records, until September 30, 2029.

How the system affects pricing and client relationships

The Japan qualified invoice system is a tax rule, but its biggest day-to-day effect is commercial. Because buyers lose part of their credit on purchases from unregistered suppliers, many Japanese companies now ask every supplier one question at onboarding: "Do you have an invoice registration number?" The answer shapes the conversation that follows.

• If you are registered, your invoices give full credit, and you are on equal footing with larger suppliers. The trade-off is that you now file consumption tax returns and pay the tax you collect, minus your own credits.
• If you are not registered, some clients will accept that and absorb the lost credit, some will ask for a price reduction roughly equal to it, and some will prefer registered suppliers. Japan's Fair Trade Commission has warned large buyers against unilaterally cutting prices paid to small suppliers because of the system, so any change should be negotiated, not imposed.
• If you are deciding, compare the consumption tax you would pay after registering (reduced by the 20% measure through 2026 and the 30% measure for qualifying sole proprietors in 2027 and 2028) with the business you could lose by staying unregistered.

Checklist before you send a qualified invoice

1. Your legal name and T-number are shown and match the NTA listing.
2. The customer's name is shown (unless a simplified invoice is allowed).
3. The transaction date or period is clear.
4. Reduced-rate items are marked, for example with an asterisk and a note.
5. Amounts are totalled separately for 10% and 8%, with each rate stated.
6. Consumption tax is calculated per rate and rounded once per rate.
7. A copy is saved in your records.

Electronic invoices and record keeping

Qualified invoices can be issued electronically, and Japan supports Peppol-based e-invoicing, although e-invoicing is not mandatory. If you issue or receive invoices electronically, keep them in a way that meets Japan's electronic record-keeping rules. Our guides to what Peppol is and how long to keep invoices give useful background.

Tips for foreign freelancers and suppliers

• Ask your client why they want a T-number. If your service is performed outside Japan, it may be outside Japanese consumption tax entirely.
• Show amounts clearly by rate if you are registered, and keep the currency consistent. See our guide to invoicing international clients.
• Never invent or borrow a T-number. Customers can and do check numbers on the NTA lookup site.
• Use sequential numbering and keep copies; our invoice number generator helps.

Comparing Asian regimes? Our guides to the Singapore GST tax invoice and Malaysia's LHDN e-invoice cover neighbouring rules, and our Israel allocation number guide shows a very different, clearance-style approach.

Create a qualified invoice for Japanese clients

The Japan qualified invoice system rewards suppliers who get the basics right: register for a T-number if your customers need it, split every invoice by the 10% and 8% rates, round once per rate, and keep copies. Build your next invoice in our free invoice generator, add your T-number in the business details, and pick a clean layout such as the Nordic invoice template so each rate and tax amount stands out. Download the result as a PDF invoice you can email, print or upload to a client portal.