Wuhan Xingqi sails cross-border e-commerce – Amazon Japan station JCT policy will be reformed

Recently, Amazon issued a new announcement stating that from October 1, 2023, the reform of the Japan Consumption Tax (JCT) "Compliant Invoice Retention System" initiated by the Japanese National Tax Agency will take effect next year.

What is JCT? Japan's JCT is essentially the Japanese version of the VAT policy. Japan Consumption Tax (JCT) is a tax that consumers pay when purchasing goods and that buyers can deduct from the tax payable by the tax office. For example, a consumer buys a product with a total price of 110 yen from the seller, of which 100 yen is the product price, and the other 10 yen is JCT. This fee is eventually paid to the tax bureau.

The JCT tax number is used to deduct tax for buyers, and consumers can also deduct before October 1, 2013, but after October 1, sellers must use the JCT tax number to deduct. Paying JCT requires certain conditions: the seller's taxable sales during the base period exceeds 1 million yen; the seller's tax payable since the base period does not exceed 10 million yen, but in the first half of the previous base year The tax payable exceeds 10 million yen, and the company's registered capital is more than 10 million yen. If any one of the above conditions is met, the seller will become a taxable entity and is obliged to pay tax in accordance with the regulations.

Sales do not exceed 10 million yen per year, and sellers with a registered capital of less than 10 million yen are exempt from the obligation to pay consumption tax. Judging from the current conditions, this policy will not affect new cross-border sellers and small and medium-sized cross-border sellers. This policy is not mandatory, but sellers are advised to apply for a JCT registration number so that consumers can be invoiced for compliance. Some consumers will have the need to apply for tax deductions, and will prefer shops that can invoice.