Some time ago, the official manager of Japan Amazon group, consulting the Japanese consumption tax seller friends is very much, in order to this, we have organized a special Q&A session of the Japanese consumption tax, focus on solving the seller friends about the Japanese JCT difficulties, pain points.
We have organized the following questions in response to your concerns during the Q&A session:
01
What are the consequences of not registering for Japan's consumption tax obligation?
Annual sales of more than 10 million yen in Japan by 2021 and 2021, and an obligation to have JCT registration in 2023.
If you don't register, there is no restriction on the amazon account for the time being, and you can continue to sell on Amazon Japan, but there will be the following situations:
(1) Import consumption tax may be imposed by the Customs and Excise Department on a mandatory reverse engineering basis, and no credit can be claimed without JCT;
(2) Taxes on goods that are not deductible and are refundable for goods that do not result in actual sales;
3) Order competitiveness is declining and companies may lose orders (Amazon will go online with JCT filter feature and JCT badge to differentiate JCT-compliant ASINs).
02
If I don't register now, can I register at any time later?
Yes, if you don't register now, you can register anytime later.
However, if your sales reach the registration threshold to have the obligation to register, the Japan Revenue Agency recommends filing the registration by March 31, 2023 in order to have the tax code registered by October 1, 2023.
03
Japan's annual sales in 2021 and before do not exceed
Ten million yen, but in the first half of 2022 more than
Am I obligated to register for JCT for 10 million yen?
It will still be a tax-exempt business in 2023, but it can voluntarily register and pay taxes effective October 1, 2023.
We had some misunderstandings about this issue before, and then we looked up some explanations from the tax office about the special period: The sales volume and the salary expenses of employees in Japan during the special period exceed 10 million yen at the same time in order to exceed the threshold, and then the entity is a taxable entity from the next tax year onwards.
04
Can I still apply for simplified reporting for registration in 2023?
You can apply for a simplified declaration in the following two situations if you are registering for JCT in 2023:
1) Sales in both 2021 and 2022 are below $10 million;
2) New sellers who start selling in 2022.
Chinese businesses and individual sellers outside of these two scenarios will be required to make a standard declaration for JCT registration in 2023.
05
Uploading the JCT tax ID to the Amazon back office after October.
Is the client immediately available for reimbursement?
Yes, it can.
Starting from October 1, 2023, buyers can only get the invoice with JCT registration number for full credit.
06
If you don't register for JCT, the one on Amazon's homepage
What do I need to do to get a JCT reminder?
There is no need to do any operation.
07
Amazon has been invoicing me since October.
Amazon will no longer help with invoicing without a JCT number.
It's not.
Amazon will still help to issue invoices, but for sellers who do not upload their JCT number on Amazon's backend, the invoices issued by Amazon do not have a JCT number on them, and are not compliant invoices, and cannot be used by the customer for full reimbursement.
08
When I imported the product, I paid 10% in excise tax and customs duty.
For the Japanese government, it is still unpaid consumption.
What is the tax situation?
Yes, it is a case of unpaid excise duty.
(1) At the time of import declaration, the consumption tax paid by the reverse accounting is import consumption tax, and JCT is sales consumption tax;
(2) For input consumption tax, if you use your own legal entity number for customs clearance and keep the relevant invoices, you can use them to offset the sales tax when filing the sales tax return.
At present, Chinese sellers are basically using the freight forwarder's number to clear customs, not their own legal person's number, this input consumption tax can not be used as a deduction.
09
What is the impact of JCT registration on logistics declaration?
For small sellers, they can use the simplified declaration method and continue to use the original way of customs clearance and declaration;
For big sellers, they must use the standard/principle declaration method, and need to commission the Japanese ACP to use their own legal entity to perform regular reverse customs clearance, and keep the consumption tax invoice of imported Japanese goods, so that they can deduct the import consumption tax in the standard declaration in the future. However, there is a cost of US$350 for binding the registered ACP seller and about 150RMB for each customs clearance.
10
Can I deduct the inputs in JCT's simplified reporting?
Simplified returns are filed at the recognized credit rate, and no credits are allowed;
Amazon and other e-commerce businesses are retail businesses with a recognized credit rate of 80%, so the actual tax payable on the simplified filing is only 20% of the sales excise tax, or 2% of taxable sales.
About Japan Consumption Tax Q&A session of the hot issues we have organized here, sellers have any questions about Japan JCT, or Japan has JCT registration or reporting needs, welcome to contact the green circle at any time the lady:
Green Circle Japan JCT registration time leading industry, the fastest 2 weeks under the legal person number, can provide professional and personalized tax advice for Japanese sellers and friends, to answer your questions, and ensure that your tax compliance.
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