Japanese Consumption Tax (JCT) & QIS Registration Service

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What types of clients can benefit?

E-commerce seller

Digital goods seller

OPTI can assist clients with knowledge about businesses in Japan and abroad when the following applies:

Non-resident companies who engaged in or intend to engage in E-commerce or digital goods sales in Japan

Companies having no party to support on JCT

Companies wishing to outsource cumbersome tasks to a local company

Companies value compliance

We are selected by our clients for the following three reasons.

Japanese Consumption Tax (JCT) Agent & Attorney for Customs Procedures (ACP)

OPTI provides support for not only Japanese Consumption Tax (JCT) matters as a Tax Agent but also customs matters as an Attorney for Customs Procedures (ACP).
Therefore, we can serve as your one-stop solution.

Tax Payment Support (Treasury service)

OPTI can support your tax payments even though the Japanese tax authorities do not usually accept payments from abroad.

Tax Opinion Letter

Though OPTI itself does not directly provide tax opinions, OPTI can arrange to provide an opinion letter through a Tax Lawyer or Certified Tax Accountant.
(*) This service will incur additional fees, so please bear this in your mind when you send your inquiry.

Why OPTI

We are the No.1 JCT service provider in Japan for non-resident companies

We have more than 1,000 clients in over 10 years

We offer electronic solutions to complete complicated processes speedily

Clients

◆What is the JCT?

The JCT is imposed on i) transfers of assets and ii) provisions of business services, conducted within Japan by enterprises for a consideration and goods imported from foreign countries at the time of their import. Such a tax is borne by consumers and paid by enterprises.

◆What is the JCT rate?

The standard JCT rate was hiked from 8% to 10%, and the reduced tax rate system was introduced on October 1, 2019. This resulted in the introduction of multiple tax rates. For instance, the 8% tax rate is applied to transfers of foods and beverages excluding alcohol and restaurant food.

◆Who is the Tax Agent?

The Tax Agent is a Japanese company or individual performing clerical work mainly on tax payments and communications with the tax authorities for non-resident businesses operating taxable activities in Japan who are required to file a tax return and pay a tax. Such businesses are required to appoint a Tax Agent, and OPTI can be a Tax Agent.

◆Who is the Consumption Taxpayer?

(Under what circumstances is it required to compete JCT registration?)

A company becomes a Consumption Taxpayer when its Taxable Sales exceed 10 million yen in the Base Period. A Consumption Taxpayer is required to complete JCT registration and start filing a tax return.

◆Who is the Qualified Invoice Issuer?

The Qualified Invoice System (QIS) will be introduced on 1 October 2023, and only Qualified Invoice Issuers will be able to issue an invoice with its "registration number" for the customer to fully deduct the tax on the purchase. A company becomes a Qualified Invoice Issuer by mandatorily or voluntarily becoming a Consumption Taxpayer and complete QIS registration.

◆What are the benefits to become a Qualified Invoice Issuer?

Your sales opportunities and credibility may increase by completing QIS registration and becoming a Qualified Invoice Issuer (QII). In other words, you may lose your sales opportunities and credibility otherwise. That is especially critical for Amazon sellers. Stores of QIIs are said to be ranked higher on Amazon. Besides, Amazon is said to only badge QIIs and complement a feature to search for only products sold by QIIs.

◆Who is the Attorney for Customs Procedures?

An Attorney for Customs Procedures (ACP) handle customs-related procedures, such as communicating with the customs office, communicating with our partner customs broker, storing & managing import-related documents. From 1 October 2023, it will be mandatory for a non-resident company to appoint an ACP in order to import goods to Japan, and OPTI can be an ACP.

Q&A

About our services

Q1. How much is OPTI’s fee for the JCT registration and return?

A1. We offer different services: i) JCT registration, ii) Acting as your Tax Agent, iii) Support for annual tax return with our partner Tax Accountant, iv) Treasury service (tax payment support), and v) Additional services. The fee depends on the size of the transactions made in Japan, the necessary full-time equivalent, etc. Please fill out the inquiry form so that we can review it and send you a proposal if applicable.

Q2. How much time does OPTI take for JCT registration?

A2. It takes roughly 1 month once all the required documents are submitted. The documents will be reviewed by both OPTI and our partner Tax Accountant, they will be discussed between both parties. Please note that there are different types of registrations for JCT, which are JCT registration and QIS registration. (What Amazon refers to as "JCT registration" is called QIS registration in our term, and QIS registration is a different service.)

Q3. Is it cumbersome to register as a Consumption Taxpayer and start filing a tax return?

A3. The process designated by the tax office is not cumbersome. However, you have to describe your business, the flow of transactions, etc in detail in order for us to proceed, and it will take time because it goes through reviews by both OPTI and our partner Tax Accountant and discussions between both parties.

About JCT system

Q4. When is it required to complete the JCT registration?

A4. It is required to complete registration immediately if your Taxable Sales exceeds 10 million yen for the Base Period or Specific Period.

Q5. When is it required to file a tax return?

A5. Each tax return and payment are due 2 months after the Taxable Period.

Q6. Is it possible to pay taxes to a Japanese tax office from abroad?

A6. You can pay taxes from abroad by using our Treasury service.

Q7. Is it impossible to impose a JCT on consumers when JCT registration has not been completed?

A7. A JCT shall be imposed on transactions deemed as a taxable transaction in Japan even when JCT registration has not been completed.

Q8. Our annual Taxable Sales are below 10 million yen. Is it unnecessary to impose JCT on consumers?

A8. A JCT shall be imposed on transactions deemed as a taxable transaction in Japan even when the transactions are made by a non-JCT registered business.

Q9. Is a JCT refundable?

A9. A JCT may be refundable when the amount of JCT on the taxable purchases is more than the amount of JCT on the taxable sales. But, the decision is left to the tax authorities.

About your case

Q10. We don’t know whether we have JCT obligations, from when we have JCT obligations, how to invoice customers etc.

A10. For ad-hoc cases requiring tax analysis, research, etc., we can assist you with our partner Tax Lawyers or Accountant with fees. The fee depends on the number and difficulty of your questions, the necessary full-time equivalent, etc. Please fill out the inquiry form so that we can review & internally discuss your case and send you a proposal if applicable.

Let our professional team do it for you.