Revision of Consumption Taxation on Cross-border Supplies of Services
In accordance with the Act for Partial Revision of the Income Tax Act and Other Acts (Act No. 9 of 2015), the Consumption Tax Act was partially amended with the revision of consumption taxation on cross-border supplies of services such as digital content distribution.
The key changes in this reform are as follows:
I. Revision of a criterion for determining either domestic or foreign transactions with regard to provision of electronic services
Start date of application
The reform in I to III above will be applied to on or after October 1, 2015.
IV. Establishment of a system for registered foreign businesses
As stated in III, the Japanese businesses receiving B2C electronic services provided by foreign businesses will not be eligible for purchase tax credit associated with the services provided. However, if foreign businesses are registered with the Commissioner of National Tax Agency (NTA) and provide B2C electronic services, a purchase tax credit can be claimed.
It's meens that registered foreign business will be good to the Japanese business receiving B2C.
Please contact us. We will on behalf of the declaration.
Brochures of revision of consumption tax