0 1 What is Japanese consumption tax?
JCT is Japanese consumption tax, which is the abbreviation of Japanese consumption tax. Japan's consumption tax (JCT) is a kind of tax that consumers pay when they buy goods, which is similar to the value-added tax in Europe. If the customer is an enterprise, the buyer can deduct the amount of JCT from the tax of the tax bureau, that is, JCT can be deducted from the income to reduce their tax.
What impact does this reform have on sellers?
At present, even if the seller's JCT registration number is not displayed on the invoice, the seller can enjoy JCT input deduction. However, from June 65438+1 October1in 2023, after the reform takes effect, the seller's JCT registration number needs to be displayed on the invoice issued by Amazon, so that your customers can deduct tax. In other words, if your customer needs tax deduction, you must have JCT registration number so that your invoice can be issued.
Which sellers need to register JCT tax number?
Meet any of the following conditions, you need to register JCT tax number to become a taxpayer, and have the obligation to pay taxes according to regulations:
1. The taxable sales of the seller in the base period exceed 1 million yen.
2. Or the taxable sales of the seller in the base period did not exceed 65,438+0,000,000 yen, but the taxable sales in the first half of the previous base period exceeded 65,438+0,000,000 yen.
3. If the registered capital of your company exceeds 65,438+0,000,000 yen, you need to register regardless of the sales volume.
(Source: National Tax Agency of Japan)
The base period refers to the two base years before the tax period. The starting month of the base year depends on your company type:
1 sole proprietorship: Your base year is from 1 to 12.
Company: The starting month of your base year depends on your company.
For Japanese companies, your base year is usually from April to March.
For China Company, your base year is usually 1 to 12.
What is the impact of not registering JCT registration number?
The JCT registration number, which will come into effect in Japan Station, has the most direct impact on the seller:
Without the JCT registration number, the seller can't issue a compliant invoice to the buyer, and the buyer can't apply for tax deduction, so the buyer will no longer buy your product, which directly leads to negative effects such as sales decline.
It is recommended that sellers register JCT registration number before June 10, 2023. All qualified cross-border sellers must pay attention!
How to register and declare?
Japan's consumption tax implements a local tax agency system, and sellers can contact a third-party company to handle it. The following information should be provided when registering JCT:
1) scanned copy of the front and back of the legal person ID card (clear, complete, uncut, watermark-free and unobstructed)
2) Scanned copy of business license (clear and complete, without cutting, watermarking and occlusion)
3) Company name, company address and product sales platform name.
4) Store link (you must be able to see the background information of the store when you open the store link) or screenshot.
5) Application data sheet (customer related information will be synchronized later)
6) Sign the power of attorney.
7) Other relevant documents that need to be provided during the declaration process.
Note: If there is a subsidiary in Japan, the detailed address, legal person information and shareholder information of the subsidiary.
Registration limit: 2-3 months, mainly depending on the current level of cases represented by the tax bureau.
Reporting cycle: generally annual report.
Time limit for filing: within two months from the day after the end of the tax period.
If the seller fails to pay the tax, he will be fined according to the number of days from the day after the statutory payment deadline to the payment date as "late payment fee".
(Source: Japan National Taxation Bureau)
The consumption tax in Japan is the sum of consumption tax and local consumption tax. Generally speaking, it is the standard 10%, and it is 8% after light tax reduction. But the low tax rate of 8% only applies to food, drinks, newspapers and so on.
JCT's consumption tax is equivalent to VAT. As early as 2020, the Japanese tax bureau began to conduct tax investigations on cross-border sellers. In addition, Amazon has recently added a new product compliance operation tool. It can be seen that cross-border compliance has been fully rolled out, and now sellers need to really implement it to minimize the danger!