- Japan updated its consumption tax rules for non-resident digital service providers in 2015
- The 2024 tax reform further developed regulations for digital economy taxation
- Foreign vendors must register for consumption tax if annual sales exceed JPY 10 million
- Different base periods apply for sole proprietors and companies to determine tax liability
- Foreign service providers need a local office or a tax representative in Japan for registration
- Registered non-resident providers must apply a 10% general consumption tax rate
- From April 1, 2025, non-resident digital platform operators must register for tax if they facilitate sales over JPY 5 billion
- Digital platform operators must notify the Japanese National Tax Agency once the threshold is exceeded
- Registered platforms include Apple Store, Apple Books, Apple Podcast, AWS Marketplace, Google Play, and Nintendo eShop
- Taxable digital services include e-books, digital newspapers, music, videos, software, cloud services, and online advertising
Source: vatabout.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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