Small-amount rule: taxable purchases under JPY 10,000 (tax included) can be credited with books alone (until September 2029, Reiwa 11)For purchases under JPY 10,000, writing them in your books lets you subtract consumption tax
For taxable purchases under JPY 10,000 (tax included) made by certain small businesses, an input tax credit can be claimed just by keeping books containing the required items, even without keeping a qualified invoice. It covers taxable purchases made from October 1, 2023 (Reiwa 5) to September 30, 2029 (Reiwa 11).
- 1. Check the amountOne taxable purchase is under JPY 10,000 (tax included)
- 2. Check the sizeBase period JPY 100 million or less, or specified period JPY 50 million or less
- 3. Check the timingPurchases made up to September 30, 2029 (Reiwa 11)
- 4. Record in the booksRecord the required items in the books and keep them
- 5. Claim the creditClaim the input tax credit even without an invoice
Key points
- It covers taxable purchases under JPY 10,000 (tax included)
- It applies to businesses whose taxable sales in the base period were JPY 100 million or less, or whose taxable sales in the specified period were JPY 50 million or less
- The period is from October 1, 2023 (Reiwa 5) to September 30, 2029 (Reiwa 11)
- Even without an invoice, keeping books that contain the required items is enough
What to do in practice
- Make it a routine to record all required items in the books, even for small purchases
- Check every period whether your company meets the size requirement (JPY 100 million or JPY 50 million)
When a shop buys goods for its business, it normally cannot subtract the consumption tax unless it keeps a document called an invoice. But for purchases under JPY 10,000, certain small businesses can subtract it just by writing it in their books.
- 1Check whether the purchase is under JPY 10,000
- 2Write the required items in your books
- 3Subtract the consumption tax in your calculation
Points
- It covers purchases under JPY 10,000
- Small businesses can use it
- It covers purchases made up to the end of September 2029 (Reiwa 11)
What the words mean
- Books (account books)
- A notebook or data file where you write down the money coming in and going out.
- National Tax Agency (NTA): NTA: Special feature on the FY2026 (Reiwa 8) tax reform (invoice system)
- National Tax Agency (NTA): NTA: No. 6496 Keeping books and invoices to claim input tax credits
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.