Overview
Japanese Consumption Tax (JCT) applies to the supply of goods and services within Japan. Registration is mandatory if: (1) taxable sales in the base period exceed 10 million JPY, (2) the company chooses to issue Qualified Invoices under the new Invoice System, or (3) the company registers voluntarily. Foreign companies without a physical presence must appoint a Japanese Tax Agent for registration.
Main Themes
• Situations Requiring Registration: Required when JCT taxable sales exceed 10 million JPY in the base period, or when issuing Qualified Invoices for B2B transactions is necessary.
• Appointment of a Tax Agent: Non-resident companies must submit a Notification of Appointment of a Tax Agent to designate a domestic representative.
• Registration Process: Preparing the Notification of Taxable Enterprise Status for Consumption Tax and submitting it, along with related documents, to the tax office with jurisdiction over the Tax Agent's location.
• Qualified Invoice System: Since October 1, 2023, only registered issuers can issue Qualified Invoices, which are required for purchasers to claim input tax credits.
Foreign businesses that need to issue qualified invoices should separately consider their JCT taxable status, Qualified Invoice Issuer registration and the appointment of a Japanese tax agent.
Read：Japan Qualified Invoice Issuer Registration for Foreign Companies
Ongoing Obligations
• Filing Frequency: Returns must be filed monthly, quarterly, or annually depending on sales volume.
• Payment Deadlines: Taxes are generally paid within two months after the end of the fiscal year. Delays incur delinquent taxes and penalties.
• Impact of Non-Registration: Without appointing a Tax Agent and registering, non-residents cannot claim input tax credits.
Our Services
We assess the necessity of registration and assist in preparing the Notification of Appointment of a Tax Agent and the Notification of Taxable Enterprise Status. We act as a liaison with the tax office and provide advice on the Invoice System. Furthermore, we offer ongoing support for filing and payments.