Taxable purchase(case)

 

I’m non-resident foreign company who attended an exhibition held in Japan. Is invoice from exhibition organizer supposed to include 8% Japanese consumption tax?

For example, B company as non-JP resident came to Japan to attend an exhibition held by a Japanese company A.

B doesn’t have any office in Japan. Arrangements for opening stores at exhibitions, correspondence to visitors, etc. are carried out by the Company A.

In this case company A should charge company B opening expenses of the exhibition and the amount billed to company B is subject to export tax exemption.

B attending exhibition can be seen as B’s product, and attending exhibition’s effect is not just within domestic, that’s why it’s tax exempted since what A provided to B is not direct domestic benefit. It should be seen as export tax exemption.

However, B company’s staff visit the exhibition and the expense of staying in Japan for several days. This expense is direct domestic supply, and benefit is within domestic. Company A should charge company B this expense with Japanese consumption tax.