With the official implementation of Japan's JCT system, many JCT sellers who were listed last year have also ushered in their first declaration. However, many sellers reported that they encountered some problems when declaring. Therefore, Tempus has prepared dry goods for the JCT declaration content today to share with you
What are the implications of Japan's tax reform for sellers in 2024? Earlier, the meeting of the Cabinet Council of Japan officially adopted the "Outline of the Revision of the Tax System for the 6th Year of the Year", which stated that on the first day of the tax collection period, the simplified tax system will not apply to foreign business operators who do not have permanent facilities stipulated in the Income Tax Law or the Corporate Tax Law. This amendment will apply to taxpayers who start to be taxed after October 1, 2024.
*: Japan Tax Bureau).
Q: Will this adjustment affect the seller's declaration in 23 24? 
a
First of all, for non-Japanese operating companies, simplified taxation does not apply for the fiscal year beginning October 1, 2024i.e. fiscal year 2025 (2025.)01.01-2025.12.31) The declarations are all standard declarationsThat is, before February 28, 2026, only standard declarations can be made for fiscal year 2025.
Therefore, the tax reform has no impact on the filing of the fiscal year.
Therefore, for sellers who choose simple declaration when registering for JCT, it will not affect the declaration for 2023 this year, and they can do simple declaration normally.
Q: What is simplified filing?
a
Simplified filing is a tax system in which the National Tax Agency (NAT) deducts input consumption tax by multiplying the amount of output consumption tax by the purchase rate recognized by the tax bureau from the perspective of reducing the tax filing burden on small and medium-sized companies.
Calculation methods for simple declaration and standard declaration:
Simplified tax filing = net sales * 10% - basic tax * reconciliation cost rate (80% for retail).
Standard filing tax = JCT - JCT of Amazon-related fees (Amazon-related fees include, but are not limited to, shipping and storage fees).
The rate of consumption tax in JapanThe standard rate of JCT consumption tax in Japan is 10%, and the reduced rate is 8%.
The categories that are applicable to the reduced tax rate are:
1.Food and beverages (excluding alcoholic beverages and out-of-town dining);
2.Newspapers that are published twice or more times a week and are obtained by subscription.
*: Japan Tax Bureau).
How to understand national and local taxes? Japan's consumption tax system consists of two parts: national tax and local tax. At a standard rate of 10%, 78% goes to national tax, 22% is allocated to local taxes.
At the time of filing, national and local taxes can be filed through a comprehensive **There is no need to declare separatelyA clear distinction will be made between the two types of taxation.
What is an intermediary declaration? The filing of JCT in Japan is the first annual report, and the declaration is made once. The filing deadline is 2 months from the date of the tax period. After that, the enterprise can prepay part of the tax according to the tax amount of the previous year, which is called intermediate declaration, also known as "interim withholding tax" or "interim declaration".
The benefits of implementing an interim declaration are:
1.For businesses:It is conducive to equalizing the tax burden and alleviating the cash flow pressure caused by the one-time payment of large taxes at the end of the year.
2.For **:It will help to achieve a balanced advance collection of tax revenue throughout the year and ensure a more stable fiscal revenue.
If there is a discrepancy between the amount of tax paid and the actual amount of tax payable, it will be adjusted according to the principle of making up the difference.
According to the standard, if the amount of consumption tax determined in the previous fiscal year is less than 480,000 yen, the taxpayer is not required to fulfill the obligation to file a mid-term consumption tax return, but the taxpayer can voluntarily submit a "Notice of Intent to Voluntary Interim Declaration" to the tax bureau and choose to carry out the interim return.
What expenses can be claimed for JCT tax credit? If the seller can provide JCT compliant invoices, generally speaking, Amazon's expenses can basically be deducted, such as Amazon FBA handling fees, advertising fees, etc.
The content of the compliant invoice provided by the seller should include:
The name of the biller and the GST tax number.
2.The date, year, month, and day of the transaction.
3.The content of the transaction.
4.The total amount of different tax rates and the corresponding tax rates.
5.The total amount of consumption tax at different tax rates.
6.Recipient's name.
Sellers can use the following paths**Tax Deduction Documents:
Seller Central] - Reports - Tax Document Library