Japan Implements Stricter Consumption Tax Rules for Non-Residents

• Japan is tightening consumption tax for non-residents
• New rules are being implemented to prevent non-resident businesses from avoiding tax obligations
• Currently, some foreign companies are exploiting exemptions to avoid registering for consumption tax
• The proposed changes include removing the annual salaries threshold exemption and the two-year base period test
• New foreign companies will have their foreign owners’ income included and will have to register if their owner’s global income is above JPY 5 billion per annum
• The proposals also include new marketplace obligations for B2C e-commerce sales from abroad.

Source: vatcalc.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.

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