Michaela Merz


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Japan – Consumption tax filing obligations for digital service providers


Japan has implemented new regulation for x-border digital service where the B2C digital services by offshore service providers to Japanese customers are subject to Japanese consumption tax.
As the filing due date for the company whose fiscal year end is December is 28 February, please find HERE a quick Web Video as an alert. Continue reading


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Japan – Update on proposed legislation proposed for Japanese consumption tax (JCT) on cross-border services


72266_web_R_by_mg-projects.at_pixelio.deAs previously reported, the Japanese government plans to tax the supply of electronic services by non-established service providers, as of 1 October 2015. The proposal is expected to pass through the legislation this spring.

According to the draft legislation the place of supply of electronic services will change from the origin principle (i.e. where the supplier is established) to the destination principle (i.e. to the place where the recipient is located). Continue reading


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Japan: new legislation to tax cross-border electronic services provided by non-established companies to come soon


Currently the B2C supply of services by a non-established company to Japanese customers is not subject to Japanese consumption tax (JCT). This provides competitive advantage to non-established service providers of electronic services compared to Japanese businesses. Since the JCT rate increased from 5% to 8%, with another increase to 10% estimated from 1 October 2015 this advantage is increasing further. Continue reading