Previously, the Japanese National Tax Agency required that sellers who need to register for JCT in Japan need to submit a registration application before March 31, 2023. Complete compliance by October 1, 2022. Recently, Amazon announced that it will begin to verify the validity of the Japanese JCT registration number submitted by sellers in the background in the Q4 quarter of 2022. If not, the registration number will be set to "inactive" status. In fact, JCT registration takes time, and for sellers, even if the regulations come into effect next year, the layout of JCT should not wait until next year.

Legal person number and registration number

The seller must use the legal person number (enterprise number) to pay the import consumption tax. During the customs clearance process, overseas sellers can use the legal person number (enterprise number) to input the imported consumption tax paid.

The registration number is mainly composed of T+13-digit legal person number. The registration number is uploaded when uploading in the Amazon background, and then used on the issued tax-deductible invoice.

Even if the seller has registered a JCT number in advance, it is not necessarily taxable. JCT has a certain sales tax exemption. If the taxable sales of the JCT taxable entity during the base period of the tax period (base year 2 in the figure above) is equal to or less than 10 million Japanese yen is exempted from consumption tax obligations within one tax period.

For cross-border e-commerce, there are many foreign festivals in the second half of the year, which is also the highlight of the peak season of the year. Early registration of JCT can avoid the peak of registration in the temporary period, which will affect the timeliness of the next number and the operation of the store in the later period.

Not only the Japanese JCT, but more and more regulations and rules need to be followed by sellers, which shows that the industry is becoming more and more standardized, and sellers have also put a lot of effort into compliance, but compliance has largely avoided potential risks in operation. , so that sellers can operate with peace of mind.