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Special Accommodation of 20% (Invoice System)

Want to know more about the Invoice System in Japan? Check out our video and get in touch with us at Seventh Sense Group!

In one of our previous posts, we discussed one of the special measures introduced alongside the Invoice system – the 80% deduction that neutralizes the consumption tax impact on purchases from both qualified and non-qualified invoice issuers.

Today, let’s explore another special measure, the “Special accommodation of 20%”.

What it is

This measure significantly reduces the calculation of consumption tax burden for eligible businesses.

Tax amount – The consumption tax payable becomes 20% of the consumption tax on your sales.

In other words, your consumption tax on taxable base is reduced by 80%. This reduction is also called a special deduction.

Who is eligible

This benefit applies specifically to businesses that became Qualified invoice issuers after previously being tax-exempt, due to the introduction of the Invoice system.


Sales Exceeding 10 million yen – businesses with sales exceeding 10 million yen in the base year or specified period are not eligible.

Tax filer before September 2023 – businesses already registered for consumption tax filer before September 30th, 2023 are not eligible.

Shortened Taxable Period – businesses that applied for a special selection to shorten their taxable period are also excluded.

Large Asset Purchases/Inheritance – Businesses that have purchased or inherited a significant amount of assets are not eligible.

How to apply

There is no need to submit a separate application. Simply indicate that you are using this measure when filing your consumption tax return.

Validity Period

This special measure is available from October 1st, 2023, to September 30th, 2026.

This information is for general informational purposes only and should not be considered as professional advice. Please consult with a qualified professional for any specific questions you may have.

You can find more details here or watch our video and contact us at Seventh Sense Group.

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