Recent article shines light on Gaba Eikaiwa’s shady enforcement of invoice system – Rough translation in post.

If anyone was thinking of coming to Japan to teach, here is just another reason to avoid this company like the plague.

I’ll leave a TLDR down below

[Original article (partially paywalled)](https://www.asahi.com/articles/ASR8L52SXR7SOXIE047.html?fbclid=IwAR2dOFsqNVBdL25zd-LoakziAmNUQBhJ6cs__6DQ_MW9dqk9QYPz7BgR2pE)

Rough translation:

\— Musashi Sakazaki, 45, a lecturer at the English conversation class “Gaba,” widened his eyes when he saw an English-language email from the school’s operating company.

In order to continue teaching with us after October 1st, registration with the invoice issuer will be compulsory.

“It wasn’t something I could easily accept.”

Mr. Sakazaki works as a lecturer at Gaba four to five days a week. In addition to that monthly income of about 160,000 yen, he also works as a photographer, but his annual income is about 2.5 million to 3 million yen. Prices have risen recently, making life relatively difficult.

In the case of Gaba, the operating company does not employ instructors such as Mr. Sakazaki, but adopts a contract form that outsources the work of teaching English. That gives instructors the freedom to pursue interests outside of work, the company explains on its website.

Compensation is paid in the form of payment for lesson services.

Consumption tax is paid by deducting the consumption tax included in purchases from the consumption tax included in sales. Since consumption tax is included in the price of the lesson service, the operating company was able to receive a tax deduction for that amount.

However, from October onwards, in order to receive this tax deduction, the operating company will need to receive an “invoice” (eligible invoice) from the instructor.

Invoices can only be issued by “taxable businesses” who are obligated to pay consumption tax. Many of Mr. Sakazaki and other instructors are exempt from tax payment if their annual sales are less than 10 million yen, but they are “tax-exempt business operators” who cannot issue invoices.

The opening email was sent from the operating company to Mr. Sakazaki and other instructors in March of this year. The purpose was to request the instructors to be registered as invoice issuers, because if the tax-exempt business was a business partner, the operating company would not be able to receive tax deductions and the burden would increase.

If you become a taxable business operator in order to issue invoices at the request of the operating company, you will be obligated to pay consumption tax, which has been exempted until now.

In the case of Mr. Sakazaki, the burden of the new tax payment is equivalent to the cost of returning to Japan once. In her native America, her 78-year-old mother, who is undergoing cancer treatment, waits, but she has no choice but to see her less often.

The operating company will raise the fee for each lesson by 20 yen depending on the time period and the instructor’s level for registered instructors. However, considering that the minimum compensation line is 1,500 yen, it is not enough to cover the new burden.

If you do not become a taxable business operator, your only option in the future is to cancel the contract. Registration in the invoice system is compulsory. Sakazaki feels that way.

“I felt that it was disingenuous to have people register in such a short-term pay rise in a hurry. It’s also sad that there are people who don’t comply,” says Sakazaki.

Some of the instructors went on strike for three days in July and held demonstrations in Yurakucho, Tokyo, voicing, “Don’t force students to register for the invoice system.” We will continue to engage in collective bargaining with management companies.

“However, no progress has been made.”

“It’s too bad to terminate the contract if you don’t register. I want to continue for the sake of my favorite students, but it’s difficult if it’s not a fair environment.” Sakazaki is currently considering leaving Japan.

However, the management company’s kitchen situation is also urgent. According to GABA, about 800 instructors have contracted with the company. The unit price (1,500 to 2,400 yen) per lesson (40 minutes) is said to be “a contract condition that exceeds that of other companies in the same industry.”

According to the company, even if the instructor does not register for the invoice system, a half-year contract can be signed. However, it was \`\`set so that you can make a decision with a grace period of consideration during the period,” and it is a one-time only. If the period has passed and there is still no registration with the system, the contract will be cancelled.

The company said, “If the instructor remains a tax exempt business, he will not be able to receive a tax credit for purchases. We have determined that it is difficult to bear a new tax burden under the current circumstances.”

The aim of raising the pay for one class by 20 yen for instructors who have registered with the system is “to reduce the burden even a little for those eligible for the reward, who seem to have a strong sense of tax burden.”

Regarding the request to cancel the introduction procedure for the invoice system, he said, “We would like to make an effort to gain the understanding of the instructor when introducing it.” —-

TLDR:

The company is forcing its tax burden onto its underpaid instructors using a law intended for businesses making 10 million yen or more. In addition to paying city tax, health insurance, and their own commuting fee, teachers will now be forced to pay an additional 5-10% in taxes.

If you want to teach in Japan, I would recommend teaching just about anywhere else but at this company. Through out the entire process the company has lied to its instructors and have even threatened those who try to educate their fellow teachers about the new rule.

If there are any current Gaba instructors here, feel free to chime in with your own stories.