Freelancing in Japan means learning to invoice correctly — in Japanese format, with the right tax handling, and now with the new Invoice System (適格請求書等保存方式). Getting this right determines whether your clients can claim tax deductions for paying you. Here’s what you need to know.
The Basics of Japanese Invoicing
A seikyu-sho (請求書) is the Japanese word for invoice. Japanese invoices follow a specific format that differs from Western ones. Getting the format right builds trust with Japanese clients.
What a Japanese Invoice Must Include
| Element | Japanese | Notes |
|---|---|---|
| Document title | 請求書 | “Invoice” at the top |
| Invoice number | 請求書番号 | For your records |
| Issue date | 発行日 | Date you send it |
| Payment due date | 支払期限 | Usually 30–60 days from issue |
| Your name/business name | 氏名・会社名 | |
| Your address | 住所 | |
| Your contact details | 連絡先 | |
| Client name | 宛名 | Often “〇〇株式会社 御中” |
| Itemized services | 品目・内容 | Each service line by line |
| Unit price | 単価 | |
| Quantity | 数量 | |
| Subtotal | 小計 | |
| Consumption tax (10%) | 消費税 | |
| Total | 合計 | Including tax |
| Bank details | 振込先 | Bank, branch, account number |
The Invoice System (インボイス制度)
Since October 2023, Japan has operated a new Qualified Invoice System (適格請求書等保存方式, commonly called the “Invoice System”). This fundamentally changed how consumption tax works for freelancers.
What It Means for You
- If you are a registered business (課税事業者) with a T-number (登録番号), you can issue qualified invoices
- Clients who are VAT-registered businesses can only claim a consumption tax credit if they receive a qualified invoice
- Unregistered freelancers (免税事業者 — those with annual income under ¥10 million) cannot issue qualified invoices — which makes some large clients unwilling to work with them
Should You Register?
| Situation | Recommendation |
|---|---|
| Annual revenue under ¥10 million, mostly individual clients | Registration may not be worth it |
| Revenue under ¥10 million, mostly corporate clients | Consider registering — clients may require it |
| Revenue over ¥10 million | Already required to be a 課税事業者 |
| Just starting out | Wait until you have corporate clients asking for it |
Registration: Apply through the National Tax Agency website (国税庁) to receive your T-number.
How Japanese Clients Pay
Bank transfer (銀行振込) is the standard payment method for B2B in Japan. Credit card or PayPal is rare for corporate clients.
Provide your bank details clearly:
- Bank name (銀行名): e.g., 三菱UFJ銀行
- Branch name (支店名): e.g., 渋谷支店
- Account type (口座種別): 普通 (savings) or 当座 (checking)
- Account number (口座番号): 7 digits
- Account holder name (口座名義): in katakana
Payment Terms in Japan
Standard payment terms in Japan are 30–60 days from month-end. For example, if you invoice on June 15, the client may not pay until July 31 or August 31. This is normal — don’t be alarmed.
締め日 (shime-bi): The cut-off date for that month’s invoices. Common cut-offs are the 15th or end of the month.
支払日 (shiharai-bi): The payment date. Often the last day of the following month.
Always clarify these terms with new clients before starting work.
Tools for Creating Japanese Invoices
| Tool | Free? | Notes |
|---|---|---|
| Misoca | Free tier | Popular, Japanese-focused, Invoice System compatible |
| freee | Paid | Full accounting + invoicing |
| Money Forward Cloud | Paid | Popular with medium businesses |
| Excel/Google Sheets | Free | Manual, but common for small freelancers |
Misoca (now part of Yamato Group) is the most popular free option and generates Invoice System-compliant documents.
Receiving International Payments
If your clients are outside Japan, Wise Business is the most cost-effective way to receive international payments:
- Get local bank account details in USD, EUR, GBP, and more
- Clients pay in their local currency, you receive yen
- Low fees compared to traditional bank wire transfers
Open a Wise account for multi-currency receiving — especially useful if you have both Japanese and overseas clients.
Tax on Freelance Income
All freelance income in Japan is subject to income tax. Key points:
- File a 確定申告 (kakutei shinkoku) — annual tax return — every year by March 15
- Keep receipts for business expenses — they’re deductible
- Consider 青色申告 (Blue Form) status for a ¥650,000 deduction and other benefits
See our full guide: How to File Taxes in Japan as a Foreigner