Japan JCT Invoice System: Qualified Invoice Requirements for Sellers
Updated 2026-08-17
Japan's Qualified Invoice System (適格請求書等保存方式), effective from October 2023, requires businesses to issue and retain qualified invoices that include the seller's registration number to claim input consumption tax credits. Foreign sellers making taxable sales in Japan must register for JCT and issue qualified invoices. This system replaces the previous simplified invoice system and affects all B2B transactions where tax credits are claimed.
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Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
What information must a qualified invoice contain?+
A qualified invoice must contain: (1) seller's name and qualified invoice registration number, (2) date of transaction, (3) description of goods/services, (4) applicable tax rate (10% or 8%) and tax amount for each rate, (5) buyer's name. The format can be paper or electronic. Electronic invoices must be in a format that can be displayed and printed.
How do I register as a qualified invoice issuer?+
Register through the NTA's e-Tax system or at your local tax office. Complete the 'Application for Registration as a Qualified Invoice Issuer' (適格請求書発行事業者の登録申請書). You receive a registration number (T followed by 13 digits). Registration is free. Allow 2-3 weeks for processing. You must already be registered for Consumption Tax.
What happens if I don't register for the invoice system?+
If you don't register, you cannot issue qualified invoices. B2B customers who purchase from you cannot claim full input tax credits on their Consumption Tax returns, effectively increasing their cost by 10%. This makes unregistered sellers significantly less attractive to business buyers. B2C sales are less affected.
Can foreign sellers register?+
Yes, foreign sellers providing taxable supplies in Japan can register as qualified invoice issuers. You must first register for Japan Consumption Tax (if not already registered), then apply for the qualified invoice registration number. A tax representative in Japan may be required for non-resident businesses.
How does this affect e-commerce sales?+
For B2B e-commerce transactions, the qualified invoice requirement is critical. Business buyers need qualified invoices to claim input tax credits. For B2C transactions, the impact is less significant as individual consumers generally cannot claim input tax credits. Marketplace sellers should ensure their invoices meet the QIS requirements.
What are the transition rules?+
The system launched October 1, 2023. During the 6-year transition period (until September 30, 2029), 80% input tax credit is allowed for purchases from non-registered sellers. From October 2029, only purchases from registered qualified invoice issuers will qualify for input tax credits. This gives sellers time to register but creates a strong incentive.
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