Overview
Once registered, businesses must submit JCT returns by statutory deadlines (monthly, quarterly, or annually based on sales volume). The return summarizes taxable sales, exempt transactions, and input tax credits. Failure to file results in delinquent taxes and penalties.
Main Theme
Tax Calculation:The payable tax amount or refund amount is calculated by subtracting the input tax credit from the consumption tax on sales. It also evaluates whether it is subject to reduced tax rates or tax-exempt transactions.
Record Keeping and Invoices:To receive input tax credits, it is necessary to keep invoices and records. Under the invoice system, only registered businesses can issue qualified invoices, and purchasers cannot receive credits without qualified invoices.
Refund Claims:If the payable tax amount has been overpaid, a refund claim is possible, but this is only applicable if foreign companies are properly registered and have appointed a tax representative.
Common Issues
Cross-Border Digital Services: Determining whether transactions are B2C or B2B and applying the reverse charge mechanism accordingly.
Input Tax Credits on Imports: Confirming the procedures to claim input tax credits for JCT paid on imported goods and services.
Late Payments: Failure to pay on time incurs delinquent taxes and penalties.
Our services
We assist in preparing and submitting JCT returns and managing required records. We verify invoice compliance and support refund claims. We also monitor regulatory changes regarding digital services taxation and provide the latest updates.