In the past few months, Japan's consumption tax JCT has become a hot topic in the cross-border industry. Today, Amber will help everyone clarify a few difficult questions in the simplest way possible.
What is the difference between JCT number and "Hojin-bango" (corporate number) in Japan?
In general, when Chinese cross-border sellers apply for a JCT registration number in Japan, they will first receive a "Hojin-bango" issued by the National Tax Agency of Japan, which represents that their enterprise has completed registration with the National Tax Agency of Japan.
After about two weeks, they will receive a JCT registration number, which represents that they have completed registration with the Japanese tax authority.
The "Hojin-bango" is an exclusive registration code for enterprises, usually consisting of 13 digits.
The website for searching "Hojin-bango" is:
https://www.houjin-bangou.nta.go.jp/
Sellers can enter their 13-digit "Hojin-bango" in the "Hojin-bango" section to view their company registration information, registered address, and effective date, etc.
The JCT number is a consumption tax invoice number in Japan, generally consisting of the letter "T" followed by 13 digits.
The JCT number can be checked at the following website:
https://www.invoice-kohyo.nta.go.jp/
This link allows you to check if the JCT number is effective and provides details about it.
Do I need to pay the back tax?
1. A seller with a history of sales, but with sales of less than 10 million yen in previous years.
In line with the standards of tax-free enterprises stipulated by the National Tax Agency of Japan, there is no need to pay tax on historical sales.
You can voluntarily apply for registration of JCT as a tax-paying enterprise, and you do not need to pay tax on previous sales.
2. Sellers with a history of sales, with sales exceeding 10 million yen in 2021.
By January 2023, it will be eligible for Japan's tax-free enterprise standards.
It is required to become a taxable enterprise in January 2023 and file its 2023 excise tax return by the end of February 2024. Taxes paid before January 2023 are not required.
3. Sellers with a history of sales, with annual sales exceeding 10 million yen before 2021.
According to the provisions of Japan's consumption tax law, the seller is required to become a tax paying enterprise one year after the base period exceeds the tax exemption threshold for the second year and declare the consumption tax.
However, for now, the Japanese tax authorities will not carry out voluntary tax checks for the time being.
4. A seller with a history of sales, whose annual sales in Japan in 2021 and before do not exceed 10 million yen, but whose sales in the first half of 2022 exceed 10 million yen.
For transnational e-commerce sellers, those who belong to duty-free businesses in 2023 can also register voluntarily and pay tax from October 1, 2023.
This is because the threshold is reached when sales and salary expenses in Japan exceed 10 million yen during a special period (no more than 2021 and no more than 10 million yen in the first half of 2022. The first half of 2022 is a special period). The general tax obligation of transnational e-commerce sellers only needs to look at the base period, that is, they have the statutory tax declaration obligation two years after the annual sales exceed 10 million yen.
5. If the seller is a new company with a registered capital of more than 10 million yen, the consumption tax shall be declared and paid from the first sales order in Japan (including direct mail and FBA orders).