Tag Archives: consumption tax

Japan – Tax authorities’ guidelines for the new JCT rules as of 1 October 2015 are now available in English

Further to our previous posts on this topic (here, here and here) the Japanese National Tax Agency (NTA) published on-line its guide in English on the Japanese Consumption Tax (JCT) obligations on the cross-border supply of electronic services.

You can access the English version of the document intended for foreign businesses here. The NTA also published some further documents here on this topic, however please note that all these documents “are used only for explanations”.

For further information please contact Kotaku Kimu of PwC Japan or me.

Japan – Update on practical implications of the new JCT rules effective from 1 October 2015

Further to our previous posts on the Japanese Consumption Tax changes (here, here, here and here), at a recent explanatory session by the Japanese National Tax Agency (NTA) on 9 June 2015 the NTA advised that the special indication “the supplier is liable to account for consumption tax” on B2C invoices can be replaced by implying that the sale price is inclusive of consumption tax. E.g. “JPY 108,000 yen (including 8% consumption tax of JPY 8,000)”. In addition the registration number of a Registered Offshore Business Person is still required to be included in the invoice.

However, given the new Consumption Tax Law which still clearly stipulates that input tax credit on a taxable purchase of B2C Telecommunication Online Services on or after 1 October 2015 is only possible if the supplier is a “Registered Offshore Business Person” and the invoice or purchase receipt (which can be prepared electronically) includes the registration number of the supplier and the special indication that the supplier is liable to account for consumption tax. If there is no such indication on the B2C invoice, a business customer should ask for re-issuing the proper invoice pursuant to the new Consumption Tax Law to ensure the deductibility of input consumption tax.

For reference please also see PwC Japan’s newsletter of 12 June 2015 on “New Japanese consumption tax rules on cross-border digital services”.

For further information please contact Kotaku Kimu of PwC Japan or me.