The 20% invoice-system special measure
Eligibility, covered periods, calculation, interaction with simplified taxation, and end date.
The temporary 20% special measure lets eligible businesses that became taxable only because they registered for the invoice system pay just 20% of their output tax, for taxable periods containing dates through September 30, 2026 — cushioning the early cost of registration.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- For businesses that became taxable only due to invoice registration.
- Pay 20% of output tax instead of the general or simplified result.
- Covers taxable periods containing dates through September 30, 2026.
- Plan for what happens when the measure ends.
How it works
If you were an exempt business and became taxable only because you registered as a qualified-invoice issuer, you can elect to pay 20% of your output consumption tax — a large simplification that usually reduces the bill versus the general method. It applies to taxable periods containing dates through September 30, 2026, subject to the detailed eligibility rules, and you can generally choose it period by period.
Planning past the measure
Because the measure is temporary, model what your consumption tax will look like after it ends — whether the simplified method or general method fits, and whether registration still makes sense. Do not build pricing around a relief that expires; decide your post-relief method in advance.
Who this is for
- Newly registered invoice issuers
- Formerly exempt freelancers
What this is not
- Businesses taxable regardless of registration
- The measure ends for periods after September 30, 2026 — reverify successor rules before relying on it.
Frequently asked questions
Do I need to file a tax return in Japan?
Many employees do not, because tax is settled by year-end adjustment (年末調整). You generally must file (確定申告) if you have side income over ¥200,000, two or more employers, self-employment income, sizeable investment or crypto gains, or you want to claim deductions like large medical costs or a first-year mortgage credit. Filing season is Feb 16 – Mar 15 via e-Tax. When unsure, check the NTA guidance or ask a 税理士.