🛍️→
2026-11-01
Tax-Free Shopping Overhaul! Store→Airport Refund
From Nov 1, 2026, tax-free shopping changes to refund system. Pay 10% tax at stores, get refund at airport.
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2026-10-01Tax
🧾 Invoice System Transition Reduced! Deduction 80%→70%
From October 1, 2026 — Freelancers & sole proprietors check now
70%
Deduction Rate
-10%
vs Previous
0%
From 2029
20%
20% Rule
❓ What's changing?
Under the Invoice System transition measures, the input tax credit rate for purchases from non-registered (tax-exempt) businesses drops from 80% to 70%. This stepped reduction was introduced when the Invoice System started in October 2023 to avoid an abrupt full denial of credits.
📅 Transition schedule
Oct 2023 – Sep 202680% deduction
✅ CurrentOct 2026 – Sep 202970% deduction
🆕 NextOct 2029 onwardsNo deduction (0%)
⚠️ Future👥 Who's affected?
- ●Tax-exempt businesses not registered for invoicing (revenue under ¥10M)
- ●Companies/sole proprietors ordering from tax-exempt businesses
- ●Foreign freelancers (interpreters, translators, IT, designers, etc.)
- ●Gig workers (Uber Eats, etc.)
⚠️ Specific impacts
💸Clients bear more consumption tax → risk of price cuts or losing contracts
📝Registering for invoicing makes you a taxable business — must file & pay consumption tax
💰20% special measure (simplified taxation) caps your tax at 20% of sales tax (until Sep 2026)
⚠️20% special measure ends Sep 2026 — then regular simplified or standard taxation applies
💡 Key points to know
1Staying tax-exempt increases client burden → risk of losing work
2Registering + using 20% special measure keeps consumption tax manageable
3Transition measures end completely in Oct 2029 — act early
4Foreign business owners in Japan are subject to the same rules
🔗 Related Issues
✈️→
2026-07-01
Departure Tax Triples! ¥1,000→¥3,000
From July 1, 2026, Japan's departure tax increases from ¥1,000 to ¥3,000. Applies to everyone aged 2+.
💴→
2026-04-01
Pension Lump-Sum Withdrawal Rules Changed!
From April 2026, foreigners who departed with re-entry permits cannot claim pension lump-sum withdrawal during the permit validity period.