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Japan consumption tax on digital services update

  • VAT
  • 20 June 2015 | Richard Asquith

Japan consumption tax on digital services update

The Japanese tax agency has provided some further updates technical issues for the forthcoming launch of Consumption Tax on digital services provided by foreign companies.

From 1 October 2015, B2C supplies of electronic services by non-resident providers will be subject to 8% Consumption Tax. This will include the obligation of register for CT if the company goes over the registration threshold – YEN50m in two consecutive years.

The new guidance relates to invoice disclosure. The agency has confirmed that the Consumption Tax calculation does not have to listed separately in the invoice. But that it should contain a note that the amount includes 8% Consumption Tax. The provider must still list its Registered Offshore Business Person number on the invoice.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.