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Japan Tax Information

10% consumption tax

Consumption tax is 10% standard, 8% for food/newspapers. Invoice System requires registration.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Japan

Business name
Invoice issuer registration number
Client details
Tax breakdown
Total in JPY

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

即日月末締め翌月末払いNet 30Net 60

Payment Methods in Japan

Bank TransferPayPayCredit CardConvenience Store Payment

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Japan?

Japan has 10% consumption tax. Consumption tax is 10% standard, 8% for food/newspapers. Invoice System requires registration.

What payment methods are common for contractors in Japan?

Common payment methods in Japan include: Bank Transfer, PayPay, Credit Card, Convenience Store Payment. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Japan?

Your invoice should include: Business name, Invoice issuer registration number, Client details, Tax breakdown. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Japan's Invoice System?

Since October 2023, businesses must register as Qualified Invoice Issuers for tax credits.