Service
Tax Agent
Act as Tax Representative for JCT(VAT) purposes
Annual JCT(VAT) filing
Inc. Indirect tax consulting, Qualified invoicing consulting, Consulting for cross-border supplies of electric services & Advise for New JCT platform taxation rules
Interim JCT(VAT) Payment
We will make the JCT tax payment to the tax office on behalf of the clients.
FAQ
Warehouse Delivery
“Warehouse delivery” means goods are deemed delivered at a warehouse.
- Domestic warehouse in Japan: Delivery within Japan is considered a domestic taxable transaction for JCT purposes. A foreign corporation must file and pay JCT (through a Tax Agent if no local presence).
- Overseas warehouse: If delivery occurs outside Japan, it is not a domestic transaction. Import consumption tax is paid by the importer upon customs clearance.
Reverse Charge Mechanism
The reverse charge mechanism applies when a foreign business provides services to a business in Japan.
- Typical cases include digital/electronic services such as cloud services, online ads, or software licensing.
- The Japanese recipient must self-assess and pay JCT, while simultaneously claiming input tax credit.
- It does not apply to goods sales; only to services.
Qualified Invoice System
Japan introduced the “Qualified Invoice System” (known as the Invoice System) in October 2023.
- To claim input tax credit, businesses must keep a Qualified Invoice issued by a registered “Qualified Invoice Issuer.”
- Only businesses registered with the tax office can issue qualified invoices.
- Foreign corporations with taxable sales in Japan should register to issue invoices, otherwise their customers cannot claim input tax credits.
- In practice, invoice registration has become almost essential for doing B2B business in Japan.
What exactly does the Tax Agent do?
In addition to filing and payment, the Tax Agent also handles correspondence and inquiries from the Japanese tax office, with explanations provided in English if needed.
How long does it take to register a Tax Agent?
Usually 1–2 weeks, depending on the readiness of required documents. To get the JCT registration number to be a qualified invoice issuer, it will take around 2 months for the foreign company. If the foreign company start the business in the current fiscal year. However, the JCT registration number is valid from the begging of the current fiscal year.
What penalties apply if filing or payment is late?
Late payment interest and additional penalties may be imposed. We manage deadlines to prevent this.