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Key Revisions to Japan’s Consumption Tax: E-Commerce, Invoice System, and Real Estate Services

  • Sellers of cross-border e-commerce goods priced at JPY10,000 or less must collect and remit consumption tax; for goods sold via digital platforms, platform operators will bear the tax obligation.
  • After the current transitional measure for small-scale qualified invoice issuers ends, a new 2-year measure will allow tax liability at 30% of sales tax.
  • The transitional measure for tax credits on purchases from tax-exempt businesses will be extended by two years and phased out stepwise, ending in September 2031.
  • Consumption tax rules will be revised to cover services related to real estate in Japan provided to non-residents.

Source: ey.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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