- Japan’s Ministry of Economy, Trade, and Industry is proposing new consumption tax collection requirements for online platforms.
- The aim is to create a level playing field between domestic and foreign online service providers.
- Currently, foreign service providers are responsible for consumption tax when a platform serves as an intermediary, but enforcement is challenging.
- Under the proposed changes, online platform operators would be liable for the consumption tax on services provided by foreign service providers through their platforms.
- This proposal is part of the government’s 2024 tax reform package and, if approved, will take effect from 1 April 2024.
Source: orbitax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
