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Amazon Japan’s seller backstage once again reminds sellers to apply for JCT registration in Japan as soon as possible. The announcement is as follows:

According to the announcement, according to the regulations of the National Taxation Bureau, in principle, applications must be submitted before March 31, 2023 in order to obtain a number before October 1, 2023. Last minute applications may take longer to receive a qualifying billing business registration number, so Amazon encourages you to apply as soon as possible.

About the introduction of the invoice system on Amazon Japan (from October 1, 2023)-FAQ

Q: What is the invoice system?

A: The Invoice System (official name: Eligible Invoice Storage System) is a system led by the Internal Revenue Service for business and sole proprietor customers to receive purchase tax credits. Once the system is launched, only sellers with a "Qualifying Invoice Issuing Business Registration Number" will be able to issue invoices eligible for the purchase tax credit.

Q: Do I have to register my number to continue selling on Amazon?

A: If you are a taxable business and wish to register as a qualified biller, you will need to enter your registration number in Seller Central. On the other hand, for tax-exempt sellers, qualifying invoice registration is optional, and entering the registration number into Seller Central is optional. However, after the launch of this system, if the quantity is not specified, the consumption tax burden on corporate purchasers will increase, so customers seeking tax credits will choose sellers who can issue qualified invoices. This possibility exists. Applicable customers are:

Business and individual business customers on Amazon Business: When you sell on Amazon Selling, your products are also sold to business and individual business customers on Amazon Business.

Certain Amazon.co.jp customers or customers making commercial purchases for corporate use may require qualifying invoices.

Given this business impact, duty-free sellers should decide whether to obtain a number.

Q: What are taxable operators and tax-exempt operators?

A: Taxable companies refer to companies that are obliged to pay consumption tax in Japan. Specifically, it belongs to the following businesses.

Taxable sales of more than 10 million yen in the base period;

The taxable sales in the base period are 10 million yen or less, but the taxable sales in the specific period (the first half of the previous fiscal year) are 10 million yen or more;

Capital of 10 million yen or more.

* In principle, the reference period refers to the business year two years ago. Fiscal years vary by business type.

For sole proprietors: In principle, the fiscal year runs from January to December.

Company: The fiscal year is determined by the company.

Even if the above conditions do not apply, there may be special circumstances in which the seller is liable to tax.

Tax-exempt companies, on the other hand, are companies that are exempt from the obligation to pay consumption tax in Japan.

Q: How can I check my taxable sales on Amazon.co.jp?

A: You can check your taxable sales here: Seller Central > Reports > Payments > Listings. Note that both personal orders and Amazon business orders are subject to taxable sales. Please confirm that domestic sales in Japan other than Amazon.co.jp are also taxable sales.

Q: Can I get a qualified billing business registration number even if I am a tax-exempt business?

A: Yes. Even if you are a tax-exempt business, you can still obtain a qualifying invoicing business registration number if you choose to become a taxable business.

Q: Do new sellers need to get a serial number?

A: If you are a new seller and have no taxable sales outside of Amazon Japan, you may be eligible for consumption tax exemption. If you are a newly formed company and qualify as a tax-exempt business, you may choose to convert to a taxable business, but this is optional by law. However, only taxable business operators can obtain a registration number. Legal person and individual proprietorship customers only need to apply for purchase tax credits for operators registered in the taxable business operator. Qualified invoices can be issued to legal person and individual proprietorship customers. , the issuance of eligible invoices required to apply for tax credits is limited to merchants with eligible invoice-issuing business registration numbers. If you determine that you need to issue qualifying invoices to corporate and sole proprietorship customers, we recommend that you obtain a registration number.

Q: I am an overseas seller without a base in Japan, do I need to obtain a serial number?

A: Yes. Even if you do not have a base in Japan, you are obliged to pay consumption tax in Japan, and you need to obtain a serial number when registering as a qualified invoicing company. Tax liability depends on taxable sales in Japan, not on the existence of a domestic base.

Q: What if I do not have a registration number when the invoice system takes effect? Will you continue selling on Amazon? What other effects?

A: Sellers who have not obtained a registration number can continue to sell on Amazon after the invoicing system takes effect. However, corporate and sole proprietorship customers will need a qualifying invoice with a registration number to claim the input tax credit. By providing Amazon with your registration number, you can expect to increase sales from your business and sole proprietorship customers.

Q: Does the eligible billing merchant registration number entered in Seller Central have to be registered with the seller name registered with my selling account?

A: Yes. Invoices issued by Amazon on your behalf will include your name and eligible invoicer registration number, as registered in Seller Central here. If they do not match, the Qualifying Billing Business Registration Number entered in Seller Central will not be valid and may not appear on the invoice. Please enter the number you used to register.

Q: Can I still enter my qualifying billing registration number in Seller Central after October 1, 2023?

A: Yes, it is possible. However, if you do not provide your Qualifying Billing Business Registration Number, we will not be able to issue Qualifying Invoices on your behalf. Sellers on the Eligible Invoice Issuer Registration must enter their Eligible Invoice Issuer Registration Number before October 1, 2023 in order for Amazon to issue Eligible Invoices after the introduction of the Invoicing Program. Please do so.

Q: By registering as a taxable business in Japan to obtain a registration number, do I need to pay consumption tax on past sales?

A: This time, if you had tax obligations before registering as a taxable business, the tax office may ask you to pay taxes on past sales. For example, if the taxable sales in the base period exceed 10 million yen, or if the taxable sales in the base period do not exceed 10 million yen, the taxable sales for the period of 6 months after the start of the previous fiscal year if the amount exceeds 10 million yen , it is a taxable enterprise.

Q: How do I qualify for input tax credits? As a seller, which items are eligible for input tax credits?

A: To qualify for the input tax credit, you must have received and retained a qualifying invoice from the party you paid the sales tax on. For example, sales tax on Amazon’s FBA fees is deductible. In order to apply this deduction, you must maintain the invoice provided to you by Amazon in Seller Central. In addition, the import consumption tax paid by overseas sellers during customs procedures can be deducted. To qualify for this deduction, you must pay the import excise tax using the seller's company number and keep the proof of payment (notification of import permission) that you received at that time.

Q: What is the relationship between consumption tax and customs tax?

A: Overseas sellers must pay import consumption tax and customs duties on products exported to Japan (tax rates vary by product category). Sellers must pay import excise tax (“GST”) at customs and collect sales tax (“GST”) from buyers. When exhibitors pay taxes to the tax office, the amount of consumption tax related to purchases will be deducted from the amount of consumption tax related to sales. Therefore, we recommend that you keep the customs proof that the import consumption tax has been paid.

Q: Can I let the shipping company use my enterprise number to pay import consumption tax?

A: Yes, we expect that with the launch of the invoice system, more courier companies will use the seller's business number to pay import consumption tax. After obtaining the corporate number, please consult the delivery company you use.

Q: Does Amazon deduct sales tax from sellers' sales?

A: No. Amazon only offers a store and sellers are responsible for collecting sales tax from customers. The consumption tax amount that must be paid is the amount obtained by subtracting the consumption tax amount for taxable purchases from the consumption tax amount for taxable sales.

Q: If I am a tax-exempt business, how will my sales tax amount show up on Amazon Business?

A: Products sold on Amazon, regardless of whether they are taxable or not, must have an appropriate GST amount set according to the product category. Depending on your sales tax rate settings, Amazon Business product pages display prices with and without tax.