Japan Consumption Tax (JCT) Guide
Updated 2026-08-17
Overseas sellers must register for JCT when taxable sales in Japan exceed ¥10,000,000 in the base period. Since October 2023, the Qualified Invoice System requires sellers to issue qualified invoices. The standard JCT rate is 10%, with a reduced 8% rate for food and beverages.
Unsure if these rules apply to you?
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
When must I register for JCT?+
You must register when your taxable sales in Japan exceed ¥10,000,000 in the base period (generally the fiscal year two years prior). Overseas sellers making taxable supplies must also appoint a tax agent in Japan.
What is the Qualified Invoice System?+
Since October 1, 2023, only qualified invoices issued by registered JCT taxpayers can be used by buyers to claim input tax credits. Sellers must display their registration number, tax rate, and tax amount on invoices.
How do I file JCT returns?+
JCT returns are filed annually within two months of the fiscal year-end. Foreign companies with no permanent establishment in Japan must file through a tax agent. Returns must be filed electronically for businesses with JCT liability exceeding ¥480,000.
How does the invoice tax credit system work for B2B sales on Amazon Japan?+
Under the qualified invoice system (effective Oct 2023), B2B buyers on Amazon Japan can only claim input tax credits if they receive a qualified invoice () with your registration number. As a registered seller, you must issue qualified invoices for all B2B transactions. Amazon automatically generates qualified invoices for marketplace transactions. If you are not registered for JCT, your B2B customers cannot claim tax credits, which may make your products less competitive for business buyers.
What is the impact of not registering for JCT on my Amazon Japan business?+
If you do not register for JCT: B2B buyers cannot claim input tax credits on purchases from you, making your products less attractive to business customers; Amazon may display a notice that you are not a JCT-registered seller; you cannot issue qualified invoices; you cannot claim input tax credits on your own business expenses in Japan. However, you save the administrative cost of filing JCT returns. For sellers with mostly B2C sales, the impact may be limited.
How do I handle JCT for mixed taxable and tax-exempt sales?+
If you make both taxable sales (most goods) and tax-exempt sales (certain food, medical supplies, educational materials), you must apportion your input tax credits. The standard method calculates the ratio of taxable sales to total sales and applies that ratio to your total input tax. For example, if 80% of your sales are taxable, you can claim 80% of your input tax credits. Alternative methods are available for businesses with specific needs, subject to NTA approval.
Continue checking
EU VAT Registration: Non-EU Seller Guide
Complete step-by-step guide to EU VAT registration for non-EU sellers. Covers IOSS for goods ≤€150, OSS for distance sales.
Japan JCT Invoice System for Sellers
Complete guide to Japan's Qualified Invoice System () for e-commerce sellers. Learn about registration, invoice requirements, and transition rules.
Japan JCT Registration for Sellers
Non-Japanese sellers with Japanese taxable sales exceeding ¥10 million must register for JCT.