1st April 2028 withdrawal ¥10,000 Consumption Tax threshold for e-commerce parcel imports
The JPY 10,000 Consumption Tax threshold on low-value consignments being imported to local consumers is to be withdrawn. This is included in the 2026 Tax Reform bill. This now subject to approval by the Japanese Parliament (the Diet).
From April 2028, suppliers of such low-value consignments should be Japanese Consumption Tax registered to charge and collect the VAT-like indirect tax. This includes digital platforms which facilitate the sales and are therefore considered as the VAT deemed supplier. There is an annual sales threshold for such platforms of JPY 5bn.
Many countries in the Asia region are looking at this, including Vietnam
Presently, goods bought by consumers online are exempt from the 10% Consumption Tax import levy if they do not exceed the threshold. But this puts local retailers and online merchants at a significant disadvantage to foreign e-tailers – especially the Chinese marketplaces – that have enjoyed huge growth in Japan and globally.
The US $800 de minimis for tariffs on imports from China was scrapped on 2nd May 2025.
Japan has imposed marketplace deemed supplier liabilities since April 2025.
In the EU, the €150 customs exemption is proposed to be scraped in 2028.
