Why a dedicated JPY–EUR–CHF converter?
Generic converters like Google or XE give you a single exchange rate. That's fine for tourists. It's not enough when you're a European company invoicing a Japanese client — or a Japanese exporter booking revenue from an EU customer — because the real number on the invoice depends on three things the generic tools ignore: Japan's consumption tax treatment, the bank's FX spread, and whether your invoice complies with Japan's qualified invoice system introduced in October 2023.
Japan's qualified invoice system (適格請求書), briefly
Since 1 October 2023, Japanese businesses claiming input consumption tax credits must receive qualified invoices from registered issuers. A qualified invoice must show the tax rate applied (10% standard or 8% reduced) and the tax amount separately. This converter produces exactly that breakdown, so you can drop the numbers straight into a compliant invoice.
Non-resident foreign suppliers are generally not required to charge Japanese consumption tax on cross-border service exports. But if you run a local subsidiary (GK / KK) and invoice domestically, you are — and your customers will want a qualified invoice with your registration number (T + 13 digits) to reclaim the input tax.
Which FX rate should you actually use?
The converter above shows the mid-market rate — the rate banks trade with each other at. Real-world rates you pay will differ:
- Mid-market rate: What you see on Google, Reuters, or interbank screens. No one actually gives you this.
- Bank TT (Telegraphic Transfer) rate: Typically 1–3% worse than mid-market for major Japanese banks (MUFG, SMBC, Mizuho).
- Specialist providers (Wise, Revolut, Airwallex): Typically 0.3–0.7% above mid-market. Often the right answer for EU-Japan SME flows.
- Card/ATM rates: 2–4% worse. Avoid for business.
Use the "FX Margin" field to model what your actual provider will charge.
When to invoice in JPY vs. EUR / CHF
Invoicing a Japanese client in their currency (JPY)
This almost always accelerates payment and widens the addressable buyer pool. Japanese finance departments often don't have internal approval flows for foreign-currency invoices, and some public-sector buyers cannot process them at all. The cost to you is the FX risk until payment lands.
Invoicing a Japanese client in EUR or CHF
Acceptable for large enterprises (especially MNCs with EU parents), luxury sectors, and professional services to multinationals. Not recommended for SME B2B or public sector.
Common mistakes we see
- Forgetting withholding tax. Payments from Japan to overseas suppliers for certain services may trigger 20.42% withholding unless a tax treaty exemption form (Form 17 / DTAA claim) is filed in advance.
- Rounding at the wrong point. Japanese consumption tax rounds at the invoice level, not the line-item level, under the new qualified invoice rules. Rounding each line separately can produce discrepancies flagged by the tax office.
- Using spot rate for long-dated contracts. For quotes valid 30+ days, build in a 2–3% buffer or quote "FX at invoice date."