Study of Japanese reduced VAT on food vs welfare support Which is most effective for social aims – reduced VAT rates on food or direct welfare support? A fascinating study by Fei Goo at Waseda University reveals governments should concentrate on more targeted support for
Finance Ministry to extend VAT collections to app stores 1st April 2025 The Japanese National Tax Agency has published Frequently Asked Questions to support the imposition of the deemed supplier Consumption Tax obligations on digital platforms for digital services. This comes into effect on 1
Fraud by shoppers reselling tax-free goods prompts reform from November 2026 Japan is revising its Consumption Tax exemption system for foreign visitors to curb the resale of tax-free goods within the country. Current thresholds for Consumption Tax refunds and a broadening of goods entitled to
Japan updates qualified invoice regime with optional e-invoicing standard – Peppol BIS Billing International (‘PINT’) 1.02 On 1 June 2024, Japan updated its PINT e-invoicing standard to 1.0.2. PINT (Peppol International) is the format being adopted increasingly globally by tax authorities, based on the original
New avoidance rules on tax registration threshold requirements The new Japanese 2024 Tax Reform Bill passed on 28 March, including a measures to prevent non-resident businesses taking advantage of the current Consumption Tax registration threshold to avoid indirect tax obligations. Currently, the annual sales threshold
2025 Tax Reform Package: Consumption Tax calculation and collection obligations for online platforms Japan has become the latest country to impose the obligations for online digital platforms to charge and remit Consumption Tax for digital services transactions by non-resident providers on their marketplaces. In the
Japan has imposed its 10% Consumption Tax on digital or electronic services since October 2015. This includes non-resident providers. However, so far, marketplaces and similar electronic interfaces are not held liable to tax obligations of their third-party sellers. Japanese Consumption Tax is made up of
Japan has raised its main Consumption Tax rate from 8% to 10% on 1 October 2019. It has also created a new reduced rate of 8% for basic supplies. This is the second rise in the indirect tax in recent years. The last was a
