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Japanese Consumption Tax (JCT) Compliance – Rates & Registration

What you need to know

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 may be permitted prior to these criteria being met.

Japanese Consumption Tax (JCT) – Rates & Thresholds

Rates Tax Type Registration Threshold
8% (Standard) Consumption Tax JPY 10,000,000
N/A (Reduced)

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