For the new Japanese tax rules, some time ago in the cross-border circle is also fried! Must have been out of policy for such a long time, there are many sellers still have a lot of confusion about it, for the Japanese JCT some common problems, the green circle to organize a lot, follow the next look!
Q
How do I know if a seller wants to register?
A
The JCT registration number is a number issued by the Japanese tax authorities to sellers who have a JCT taxable entity (sellers who pay JCT). Sellers on Amazon Japan must register with JCT if they need to issue invoices.
If any of the following conditions are met, you will be required to register as a taxpayer under a JCT tax code and will be liable to pay tax as required:
1. The seller's taxable sales in the base period exceeded 10 million yen (whether or not sales 2 years ago exceeded 10 million yen)
2. The seller's taxable sales during the base period did not exceed 10 million yen, but the seller's taxable sales in the first half of the previous base year exceeded 10 million yen (whether or not the sales in the first half of the previous year exceeded 10 million yen)
3. The above conditions are not met, but the seller has registered a Japanese company, and the company's registered capital is more than 10 million yen (including 10 million), regardless of the amount of sales, need to be registered.
4. Sellers who want to issue deductible VAT invoices can register on their own initiative.
Q
Can I sell on Amazon without a JCT registration number?
A
If the obligation to pay Japanese Consumption Tax has not been met, whether to apply for JCT is currently "optional" for sellers.
However, when the reforms come into effect, Amazon will plan to implement features to let buyers know which items can be invoiced for compliance. If sellers don't provide JCT registration number, it will have a bad impact on sales volume and store, we recommend sellers to be compliant as soon as possible.
Q
What will happen if I do not register my JCT number even though I am eligible?
A
Sales will be affected; unregistered sellers cannot issue deductible invoices. If a buyer wants to purchase a batch of products that require an invoice, the seller will not be selected by the buyer and the seller will lose many customers.
Q
Do I have to report sales that occurred before 2020?
A
If you are obligated to pay 2022 tax, the answer is yes. You are obligated to pay 2022 tax if your taxable sales two years ago (e.g., 2020) were 10 million yen or more. Late voluntary returns are not subject to penalties, but interest is charged (at a rate of 2% per year).
Q
What types of invoices are eligible for offsetting excise tax?
A
Invoices issued by companies with tax codes are deductible, customs duties paid at customs clearance are not deductible, and part of the consumption tax paid in advance at the time of import is also deductible. The premise is that the seller can only deduct the invoice after registering with JCT.
Q
I have several Japanese stores, can I apply for one JCT?
A
No. One store corresponds to one company entity, and the applicant for a Japanese consumption tax registration number is the seller registered in the platform account.
The seller name in the JCT registration number and the seller name in the backend of the relevant account must be the same, otherwise the platform cannot be verified.
If you have any questions about JCT Japan, please contact our dedicated account manager!
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