In recent months, Japan's consumption tax JCT has really exploded the cross-border circle! Green Circle has also written a number of articles on Japan's JCT, and today we'll run through a few more difficult questions and explain them to you in the simplest way possible.
What is the difference between a JCT tax code and a corporate number?
Generally speaking, Chinese cross-border sellers applying for Japan JCT registration number will first receive the legal person number issued by Japan National Tax Agency, which represents that the enterprise has completed the registration of Japan National Tax Agency; after about two weeks, it will only receive the Japan JCT registration number, which represents that the enterprise has completed the registration of Japan Tax Agency.
The legal person number is the exclusive registration code of the enterprise, which is generally composed of 13 digits.
Corporate number inquiry address:
https://www.houjin-bangou.nta.go.jp/
Sellers can enter the 13 digits of the legal entity number in the Legal entity number section to view the company's registration information, registered address and effective date.
JCT number is the Japanese consumption tax invoice number, generally composed of the letter T + 13 digits.
JCT No. Address for inquiries:
https://www.invoice-kohyo.nta
By using the above link, you can check whether the JCT tax code is valid or not and the details.
Do I need to pay back taxes?
We help sellers analyze whether they need to pay back taxes in five scenarios.
I. A seller with a history of sales, but with sales of less than 10 million yen in previous years.
The company meets the criteria for a tax-exempt company set by the Japanese tax authorities and is not required to pay back taxes on historical sales.
It is possible to voluntarily register JCT as a taxable enterprise without having to pay back taxes on previous sales.
II. Sellers with a history of sales, with sales in 2021 exceeding 10 million yen.
Comply with the Japanese tax-exempt enterprise standard by January 2023
Need to become a taxpaying business in January 2023 and file a return for 2023 excise tax by the end of February 2024; no back taxes are due for taxes prior to January 2023
III. Sellers with a history of sales that exceeds 10 million yen in annual sales by 2021.
According to the Japanese Consumption Tax Law, the seller needs to become a taxpayer one year after the second year of the base period exceeding the tax-exempt threshold, and file a consumption tax return.
However, for the time being, it appears that the Japanese tax authorities will not conduct any active tax inspections.
IV. Sellers with a history of sales, whose annual sales in Japan do not exceed 10 million yen in 2021 and before, but whose sales in the first half of 2022 exceed 10 million yen.
For multinational e-commerce sellers who are tax-exempt undertakings in 2023, they can also voluntarily register to pay tax effective October 1, 2023, as well.
Because in the special period (2021 does not exceed, the first half of 2022 exceeds 10 million, the first half of 2022 is a special period) sales and staff wages in Japan at the same time more than 10 million yen is considered to exceed the threshold. The general tax obligation for international e-commerce sellers only depends on the base period, i.e., 2 years after the annual sales volume exceeds 10 million yen, with the legal tax filing obligation.
If the seller is a new company with a registered capital of more than 10 million yen, the seller will be required to file a consumption tax return from the first Japanese sales order (including direct mail and FBA orders).
How should the base period and taxable period be interpreted?
Base Period: The base period is the two years prior to the tax due date.
The start month of the base year depends on your company's accounting period:
Individuals (commercial and industrial): The base year is from January to December;
Chinese companies: The base year is from January to December;
Japanese companies: The base year is from April to March of the following year;
Hong Kong companies: The base year is from April to March of the following year.
Taxable period:
(1) The threshold of taxable annual sales over 10 million yen in the base period is obliged to become a JCT taxable entity after 2 years and to file a tax return from the beginning of the taxable period;
For example, if sales in Japan exceed 10 million yen in 2021, the taxable period begins in 2023.
(2) For tax-exempt businesses that voluntarily become taxable entities, the tax payment period can start from October 1, 2023 if they are registered this year.
To see exactly what Japan Customs Clearance Reverse Banking and Japan JCT have to do with each other, check out this article:
If you want to know whether you should choose to file a simple or standard Japanese consumption tax return, how much tax you need to pay for each of the two types of returns, how different they are, and an example of an actual seller's tax payment for reference, you can check out the following article:
If I don't want to register with JCT now, can I do so? What are the implications? The following article will answer your questions:
Green Circle is the Amazon SPN and ebay Golden Eagle program tax service provider, but also the first batch of domestic service providers to get the Japanese JCT certificate, currently under the number of stable efficiency, every week continued to be smooth under the number of the spring holiday period also under the 16 number:
Green Circle partners ten years of tax specialist team, and the Japanese tax authorities to maintain close contact with the registration of the industry's leading time, the fastest 2 weeks under the legal person number, can provide professional and personalized tax advice for the Japanese station sellers friends, and to ensure that your tax compliance.
If you have any related needs, or have any questions about Japanese tax, please feel free to ask Ms. Green Circle on WeChat~.
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