Japan Consumption Tax rise implementation
- 25 April 2013 | Richard Asquith
During the transition period, the following treatment of certain transactions will apply:
- Interim payments due after 1 April 2014 based on contracts signed before this date will be payable at the 5% rate
- Lease payments for contracts entered into up to 30 September 2013 will be charged at 5%
- Short term contracts entered into up until 30 September 2013 will be charged at 5%
- Payments on the supplies of goods or services made prior to 1 April 2014 but consumed after that date will be charged at the 5% rate.
- Payments on long term contracts for work done up until 1 April 2014 will be at the 5% rate.
There are plans to issue further guidance for refundable tax credits and the tax identification number system.