JCT
Category: tax
Japanese Consumption Tax — Japan's equivalent of VAT, currently at 10%.
Japanese Consumption Tax (JCT) is Japan's equivalent of VAT, currently set at 10% (with a reduced 8% rate for food and beverages). Since October 2023, Japan implemented a qualified invoice system requiring sellers to issue qualified invoices for buyers to claim input tax credits. Cross-border digital service providers must register and collect JCT on B2C digital sales to Japanese consumers.
Examples
- • An Amazon Japan seller must register for JCT and issue qualified invoices to business buyers who need input tax credits.
- • A cross-border digital service provider selling SaaS to Japanese consumers must register as a foreign business and collect 10% JCT.
- • A seller using Amazon FBA Japan with inventory in an Amazon warehouse triggers JCT registration regardless of sales volume.