🛍️→
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
👶→
2026-10-01
Pension Childcare Exemption Starts October 2026
Japan's National Pension childcare premium exemption starts in October 2026. From September 11 the Japan Pension Service chatbot answers questions on who qualifies and how long the exemption runs — useful for foreign residents paying premiums themselves.
📄→
2026-10-01
Pension Deduction Slips Sent from October
Japan Pension Service will send 2026 National Pension deduction certificates from mid-October (digital) and late October (paper). Premiums are fully deductible and the slip is required for year-end filing.