Japan's ¥10M Consumption Tax Threshold: What Guesthouse Operators Need to Know
Running a small guesthouse in Japan, you’re probably a 免税事業者 — a consumption tax-exempt business. You don’t collect Japan’s 10% consumption tax from guests, you don’t file a consumption tax return, and your accounting is simpler for it. As revenues climb though, that status has a shelf life. And the rules for when it ends are easier to get wrong than most people realize.
Here’s what I wish someone had laid out clearly when our own revenue started approaching the threshold.