What Is a JCT Tax Representative and Why Is It Required?

When a non-resident foreign entity becomes subject to Japan’s Consumption Tax (JCT), it is required to appoint a JCT Tax Representative (Tax Agent).

If a non-resident company sells goods to customers in Japan, it typically collects 10% consumption tax on those sales. This collected JCT must be reported and submitted to the Japanese National Tax Office, unless the entity qualifies as a tax-exempt business. (See: “Are we a Tax-Exempt Business?”)

If the entity is JCT-liable—or voluntarily registers as a taxable entity, such as by obtaining a Qualified Invoice Issuer Number—it must appoint a JCT Tax Representative to handle all tax-related procedures in Japan, including JCT tax filings. In the JCT tax return process, the paid import JCT can be offset against the collected JCT.

• If the import JCT exceeds the collected amount, the difference may be refunded.
• If the collected JCT exceeds the import amount, the difference must be paid to the tax office.

A JCT Tax Representative is legally required to manage this process on behalf of the foreign entity.   Please note: The JCT Tax Representative is distinct from the Attorney for Customs Procedures (ACP), which is appointed for customs clearance purposes.

• ACP = Customs representative
• JCT Tax Representative = Tax representative

 

Our JCT Representative Service

At ACP JAPAN, we provide a comprehensive one-stop service covering both:

• Attorney for Customs Procedures (ACP)
• Japan Consumption Tax (JCT) Tax Representative

For the JCT portion of the service, we subcontract with a certified tax accountant (our trusted partner). As the primary contractor, ACP JAPAN oversees the entire process and ensures quality and consistency across all deliverables. Thanks to our deep expertise in customs procedures and JCT treatment, our clients are able to efficiently deduct or reclaim paid import JCT through proper tax filings.  

Contract Structure of Comprehensive One-Stop Service for ACP and JCT Representative

 

Standard Scope of Works

In collaboration with our partner certified tax accountant, we provide:

• JCT Registration Setup including Obtaining a Qualified Invoice Issuer Number.
• Support notification of tax representative appointment.
• Support preparation/submission of the JCT return.
• Communication with stakeholders including National Tax Office.
• Cash handling support (e.g. Payment of the JCT to National Tax Office)

 

Flexibility in Tax Accountant Introduction

Our service structure is flexible and tailored to the client’s business needs. If we determine that the client’s business involves complex international tax issues, we may introduce another trusted tax advisory firm to provide advanced tax consultation in coordination with our services.