Japan Plans Reform of De Minimis Threshold for Imported Low-Value Goods Due to Tax Issues

Japan’s Ministry of Finance is reviewing consumption tax rules on imported low-value goods, following new deemed supplier tax regulations effective April 1, 2025, to address exploitation by Chinese e-commerce firms.
Currently, goods under JPY 10,000 customs value are exempt from consumption tax, but a 500% increase in such imports harms domestic sellers and e-commerce platforms.
Two proposed models include removing the de minimis exemption and requiring foreign sellers to register for consumption tax, or introducing a sales threshold for mandatory registration while keeping exemptions for smaller sellers.
The final decision on reforming the de minimis rule and expanding platform taxation for cross-border B2C sales will be made as part of Japan’s 2026 tax reform.

Importation