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.
You’re running guesthouses, not an accounting firm. But somewhere between managing guest check-ins, coordinating cleaning teams, and chasing OTA payouts, the receipts start piling up. The konbini bag under your desk slowly becomes a grocery bag, which becomes two grocery bags, and suddenly it’s February and you need to file your 確定申告.
This is the reality for most short-term rental operators in Japan — especially those running under a LLC or as a sole proprietor. Here’s a practical guide to what you actually need, without the accounting software sales pitch.
Another 確定申告 season has come and gone. If you’re reading this in April, you either just filed your FY2025 return — congratulations — or you’re emerging from a fog of receipts, spreadsheets, and late-night e-Tax sessions wondering if there’s a better way to do this.
There is. And it starts now, in April, not next February.