Location guide · Japan
Location guides for 2 cities in Japan, from Tokyo and Osaka. Flip Retail builds custom ERP, AI agents, web applications and SaaS for businesses in Japan from Jaipur, India, and delivers remotely.
01 — Compliance
Tax, e-invoicing, data-protection and AI rules that shape an ERP, billing system or AI agent in Japan. Last reviewed October 2026.
| Indirect tax | Consumption tax (JCT), standard rate 10% (8% reduced)Consumption tax is 10% (including local portion) with an 8% reduced rate for food and newspapers. Since October 2023 input-tax credits require qualified invoices from registered issuers showing the registration number and tax by rate. |
|---|---|
| E-invoicing | Voluntary · Qualified Invoice System; JP PINT (Peppol) e-invoicesThere is no e-invoicing mandate, but the Qualified Invoice System sets strict invoice content rules and the government promotes Peppol-based JP PINT. Under the 2026 tax reform (enacted 31 Mar 2026), the transitional credit for purchases from unregistered suppliers fell from 80% to 70% on 1 Oct 2026, then 50% from Oct 2028 and 30% from Oct 2030. |
| Data protection | Act on the Protection of Personal InformationIn force and enforced by the Personal Information Protection Commission, with mandatory breach reporting and cross-border transfer disclosure rules since the 2022 amendments. |
| AI rules | The AI Promotion Act (passed May 2025, fully in force from 1 September 2025) is a non-punitive framework law that set up the AI Strategy Headquarters and an AI Basic Plan, complemented by government AI guidelines for business. |
| Systems we migrate from or connect to | freee, Money Forward Cloud, Yayoi, Kanjo Bugyo (OBC), OBIC7, SAP, Oracle NetSuiteMasters, ledgers, stock and open balances move across and are reconciled before cutover. |
| Payment rails for web apps and SaaS | PayPay, Konbini (convenience-store) payments, Pay-easy, Bank transfer (Zengin), GMO Payment Gateway, Stripe |
| Also worth knowing | The Electronic Bookkeeping Act requires electronically received transaction data (e.g., PDF or EDI invoices) to be stored electronically with search and integrity controls, and the transitional input-credit cap is JPY 100 million of purchases per supplier from October 2026. |
General information, not legal or tax advice. Rules change, so we confirm current requirements during discovery; your tax adviser should confirm anything that affects filings.
Sources consulted:
03 — Industries
The industries that come up most across the cities we cover in Japan.
04 — Services
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Start a conversation05 — FAQ
Yes. Flip Retail is based in Jaipur, India, and works with Japan businesses remotely. We have no office in Japan; discovery happens on video calls, you get working software every two weeks, and the engineers who write the code are on the calls.
Yes. Invoicing is built for Japan's Consumption tax (standard rate 10%). There is no e-invoicing mandate, but the Qualified Invoice System sets strict invoice content rules and the government promotes Peppol-based JP PINT. Under the 2026 tax reform (enacted 31 Mar 2026), the transitional credit for purchases from unregistered suppliers fell from 80% to 70% on 1 Oct 2026, then 50% from Oct 2028 and 30% from Oct 2030. If you or your customers want it, a custom ERP can connect to JP PINT (Peppol) through an accredited provider.
In force and enforced by the Personal Information Protection Commission, with mandatory breach reporting and cross-border transfer disclosure rules since the 2022 amendments. You choose where the system is hosted, access is role-based, and we work on test or masked data during development wherever possible.
Yes. Masters, ledgers, stock items and opening balances move across and are reconciled with your accountant before cutover, ideally at a year-end or quarter-end.
The AI Promotion Act (passed May 2025, fully in force from 1 September 2025) is a non-punitive framework law that set up the AI Strategy Headquarters and an AI Basic Plan, complemented by government AI guidelines for business. We design AI agents with logging, human oversight and clear disclosure from the start, which covers most current requirements.
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Tell us about the process you want fixed in your Japan business. We reply within one working day.