Japans Consumption Tax at 10 % Ms. Hiroko Koido, TGN Soleil - - PowerPoint PPT Presentation

Topic 1 Topic 2 Topic 3 Contact

www.EUbusinessinJapan.eu

Topic 4

Japan Tax & Public Procurement Helpdesk

Japan’s Consumption Tax at 10%

• Ms. Hiroko Koido,

TGN Soleil Accounting Firm

November 28, 2019

TGN So Soleil eil Accounti

• unting

ng Firm

Impact on your business

Japan’s Consumption Tax at 10%

1,200 CTax deductible 1,500 CTax payable 1,500 CTax deductible 2,000 CTax payable Material

importing

Cost 12,000 Profit 3,000 Cost 15,000 Profit 5,000

manufacturing consumer

Consumption 30,000 Cost 20,000 Profit 5,000

wholesaling

Customs

★

2,000 CTax deductible 2,500 CTax payable

1,200 300 500 500 ＋ ＋ ＋

＝ 3,000

500 ＋

3,000 CTax deductible 2,500 CTax deductible 3,000 CTax payable

The amount of CTax payment of each business The amount of the bill for the end-user

Cost 25,000

retailing

Profit 5,000

2

Str Structu ucture e of

• f CT

CTax ax

Ⅰ-1 Multipl ultiple e tax tax rates tes 10 10% or % or 8% 8%

From October 1st 2019

3

Ⅰ-3

８％ 10 10％

Reduced Ta Reduced Tax rat x rate Stan Standa dard T rd Tax ax rate rate Foods and Drinks Newspapers Restaurant Alcohol

Others

News

Water Pharmaceutical/ medicated product Wine Beer Restaurant Take out Newspaper Foods & Drinks

Ⅰ-2

Multiple Multiple Cons Consump umption tion Tax Ra ax Rate te

4

Timel Timeline ine for

• r

qu qualif alified ied in invoice

• ice sy

syst stem em

Ⅰ-3

The multiple consumption tax rate system started.

2019 2021 2023 1 Oct 1 Oct 1 Oct 1 Apr invoice Rate-classified invoice method Qualified invoice method Obligation to Indicate the total price

Taxable sales

（ⅰ） the sales or lease of an asset or the supply of services in Japan （ⅱ） when carried out as part of a business （ⅲ） with compensation Imported goods into Japan Removing the imported goods from bounded warehouse.

5 Non-residents without a fixed place of business in Japan must appoint a tax representative to handle Ctax administration

Tax ax ba base se

Ⅱ-１

1 2

The main non-taxable transaction : Ctax does not apply to the

Following items

sales or leases of land sales of securities financial transaction conducted in Japan insurance premiums services carried out by the central/local government services performed in an international context medical care social welfare activities education rental of housing exported goods and services ｇoods purchased from tax-free shopping for non-residents

6

Tax ax ba base se

Ⅱ-２

Filing and payments annually. Due within 2 months of the end of a corporation’s fiscal year. For individuals , due by March 31 of the year following the end of calendar year. The interim return is required depending on the amount paid as CTax for the previous year. （The interim payments are required at the semi-annual basis , quarterly basis or monthly basis.)

7

Fili Filing ng an and d pa payme yment nts

Ⅲ-１

1/1

2018

1/1

2019

6/30 12/31 2/28

2020

12/31 12/31 12/31 1/1

2017

taxable sales taxable sales and total amount of salary payment

JPY 10M

• r less

non-taxpayer

• ver JPY 10M

(€84000）

• ver

JPY 10M

taxpayer taxpayer

the base period the specified period

the current year

due date for filing and payment

8

Fili Filing ng an and d pa payme yment nts ～ta taxp xpay ayer er

Ⅲ-２

Newly established companies

Its paid-in capital at the beginning of the fiscal year is JPY 10M or more

taxpayer status

9

Election of the taxpayer status

Fili Filing ng an and d pa payme yment nts ～ta taxp xpay ayer er

Ⅲ-３

10

Can Can EU c EU comp

• mpan

anies ies who ho do do bu business in siness in JAP APAN AN ge get a t a Ctax Ctax refu efund nd? Ⅲ-4

HOTEL

A B

EU JAPAN

Japanese domestic business EU company

CTax is levied.

A B

EU JAPAN

Export

Tax payment Tax refund No tax refund

Tax payer status Appointment of tax representative

Ctax is levied.

selling buying

Business trip in Japan

C

Domestic business Domestic consumers/business Electronic commerce , such as supplies

• f digital books ,music , and

advertisements , as well as cloud services Electronic commerce , such as supplies

• f digital books ,music , and

advertisements , as well as cloud services Foreign business 【identification of the jurisdiction of taxation】 （Before revision） by the location of service suppliers →CTax was not levied. （At present） by the location of service recipients →Ctax is levied. Co CTax is levied.

11

Ct Ctax ax on

• n cr

cros

• ss-bo

borde der r su supp ppli lies es of

• f s

ser ervice vices

Ⅳ- １

Japan abroad

National border

12

Useful Useful inf infor

• rma

mati tion

• n

Cas Cashles hless s pa payme yment nt

～na national tional pr prog

• gram to pr

am to promote

• mote it

it ～

Ⅴ-１

Credit card/ Debit card E-money QR/ Barcode Plastic card Plastic card Smartphone Smartphone VISA MASTER JCB American Express Diners Club Suica Pasmo Edy WAON nanaco QUICPay iD Paypay LINE pay Origami pay Rakuten pay D pay (docomo) au pay etc… etc… etc…

13

Usef Useful ul inf infor

• rma

mation tion

Cash Cashless less pa payme yment nt po point int retu eturn n ca campa mpaign ign

Ⅴ-２

caf cafe

24 24 Japanese Government Mid / Small Retail Retail Chain

depart rtme ment

0% 0% Lower fee Less than 3.25% Payment Service Company Consumer Large Scale Retail Point 5% Point 2%

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www.EUbusinessinJapan.eu

Topic 4

Question and Answer session

Japan Tax & Public Procurement Helpdesk

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www.EUbusinessinJapan.eu

Topic 4

Thank you for your attention!

jtpphelpdesk@eu-japan.eu http://www.eu-japan.eu/taxes-accounting

The opinions expressed in this Webinar are those of the expert(s) only, and may not necessarily represent the views of the EU- Japan Centre for Industrial Cooperation or of the EU or Japanese Authorities. No warranty is given for their accuracy or completeness.

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