By taking advantage of Attorney for Customs Procedure (ACP), non-resident person/company becomes a Importer in Japan, meaning that it shall be liable for the non-resident to pay taxes, (1)Customs Duties and (2)Japanese Consumption Tax(JCT) ≒ VAT.
With regards to the (1)Customs Duties, it is only required for the non-resident to make payment only, very simple.
Regarding the (2) JCT (Japanese VAT), non-resident has to pay 10% when import. After import, if non-resident sells goods to Customer in Japan, this transaction shall be liable for JCT, so non-resident receives 10% of JCT from the Customer in Japan. So how do you treat this received JCT?
If the non-resident’s domestic sales exceed 10 million JPY (Base period, JCT term), basically it 2 years later the non-resident owes tax-liability, so from that timing the non-resident has to submit to Tax Office, with the amount received from Customer in Japan by deducting previously paid the import JCT.
By this sense, JCT on sales you do not have to file in first 2 years. However, if you would like to refund the amount you paid as an import JCT for some reasons, you have to apply to be a “Taxable Proprietor”. Once you become it, then you can get refund by filing JCT declaration to Tax office.
In this way, if the Non-resident client is liable or the client selects as to be a Taxable Proprietor, then it has to make an appointment of Tax representative, apart from ACP.
As an One-stop-service, by coordinating with our partner tax firms in Japan, so that we can support comprehensively through ACP and Tax Representative service by us.
For tax issues, we recommend getting advice from certified Tax Accountant. We are pleased to introduce the professional international Tax Accountant in our reliable network.
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In recent, we’ve been supporting many import projects of goods related to the Amazon-FBA program. If you are looking for a reliable ACP service provider, please let us know.