Tag: JCT

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

Michaela MerzLeave a comment

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). Read More »

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

Michaela MerzLeave a comment

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.Read More »