1. Introduction
In this News, we will mention the treatment of Japanese Consumption Tax (JCT) when goods are imported from overseas.
2. Basic rules
Under JCT laws, the following transactions are subject to JCT.
(1) Transfer and lease of assets or provisions of services by a business operator
(2) Specified purchase
(3) Foreign cargo retrieved from a bonded area (import transactions)
Importing goods from overseas categorized in (3) is subject to JCT. In this case, the “consignee” listed on the invoice (i.e., the “importer” on the Import Declaration (ID)), becomes a JCT taxpayer, except as otherwise provided in customs laws and regulations.
In transactions mentioned in (3), not only business operators but also individuals are subject to import JCT.
In addition, in cases where a foreign entity appoints an Attorney for Customs Procedures (ACP) to handle the customs procedures on its behalf, it can act as a non-resident importer (IOR).
3. Import transactions and qualified invoices
In order to take an input JCT credit, qualified invoices and other related documents should be maintained.
On the other hand, in cases where the transaction is carried out outside of Japan, a buyer is not allowed to take an input JCT credit.
As for import transactions, a buyer is allowed to take an input JCT credit by maintaining the ID.
4. Conclusion
In this News, we mentioned “JCT import transactions.”
Please note that this News only introduces general outlines and does not include professional advice. So please make sure not to make any decisions without taking professional advice individually. If you have any questions, please feel free to contact us below.
(References)
National Tax Agency
Scope of Japanese Consumption Tax (Japanese)
Japan Customs (English)
9601 Customs Clearance Procedures for Persons Living Abroad (Customs Procedure Agent) (FAQ) : Japan Customs
National Tax Agency
Requirements of Maintenance of Books and Documents for Taking an Input Consumption Tax (Japanese)
Query on the phone+81-3-6821-9455