The indirect tax system in Japan is consumption tax (“JCT”). Tax is due on taxable supplies of goods and services made in Japan, in the course of a business activity. This includes electronic services provided to non-business customers. Note that if certain supplies of goods or services are made by a non-established supplier, JCT will be remitted by the customer.
JCT is also due on the importation of goods into Japan.
Appointment of a tax agent is mandatory
JCT registration threshold:
A business that performs taxable supplies during the base period (generally the year beginning two years before the tax year concerned) of more than 10 million yen, will automatically become a taxable business. (Voluntary registration is permitted prior to these criteria being met).
Note: Please use a tablet device or larger to view the EU VAT Rate table