Japan Consumption Tax for Foreign E-Commerce Sellers
Updated 2026-08-03
Japan's Consumption Tax (CT) is 10% (8% for food and beverages). Foreign sellers providing digital services to Japanese consumers must register for CT and collect tax if their taxable sales exceed ¥10 million. Since October 2023, the qualified invoice system requires sellers to issue qualified invoices for buyers to claim input tax credits. Foreign sellers with inventory in Japan must register regardless of sales volume.
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
What is Japan's Consumption Tax rate?+
Japan's standard Consumption Tax rate is 10%. A reduced rate of 8% applies to food and beverages (excluding alcohol and dining out) and certain newspapers. The tax is similar to VAT/GST in other countries and applies to most goods and services sold in Japan.
When must a foreign seller register for Japan CT?+
A foreign seller must register for Japan CT if: their taxable sales exceed ¥10 million in the base period, they provide digital services to Japanese consumers through an electronic platform, or they store goods in Japan (e.g., Amazon FBA Japan). Registration is with the National Tax Agency (NTA). There is no registration threshold for foreign sellers providing digital services.
What is the Qualified Invoice System?+
The Qualified Invoice System (適格請求書等保存方式) launched October 1, 2023. It requires registered businesses to issue qualified invoices containing specific information (registration number, tax rate breakdown, etc.) for buyers to claim input tax credits. Sellers must register with the NTA to receive a registration number. Unregistered sellers cannot issue qualified invoices.
How does the platform tax collection work?+
For B2C digital services provided through electronic platforms, the platform operator is deemed the service provider and must collect and remit CT. This applies to app stores, e-book platforms, and music/video streaming services. For physical goods, the seller remains responsible for CT unless the platform is specifically designated.
Do I need to issue Japanese-language invoices?+
Yes, qualified invoices under the new system must be in Japanese or include sufficient Japanese translation for the required elements. The invoice must contain: supplier's qualified invoice registration number, date of transaction, description of goods/services, applicable tax rate and amount, and buyer's information.
What are the filing requirements for Japan CT?+
CT returns are filed annually (fiscal year January-December or a different approved year-end). The filing deadline is within two months of the fiscal year-end. Foreign sellers must file a tax return even if no tax is due. Quarterly provisional payments may be required for larger taxpayers. Electronic filing is available through the NTA's e-Tax system.