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Japan
VAT in
Japan's Qualified Invoice System (Inboisu) requires all businesses to register as Qualified Invoice Issuers (QII) to allow customers to claim full input tax credits. Whether managing Tax Agent appointment, annual JCT returns, or Inboisu QII registration, GlobalTrade Business provides complete Japanese Consumption Tax compliance support.
Annual
FILING FREQUENCY
Within 2 months of fiscal year-end; quarterly/monthly if annual JCT >JPY 48 million
JPY 10,000,000
REGISTRATION THRESHOLD
Prior-year taxable sales; no threshold for non-resident digital service providers supplying B2C
OVERVIEW
Introduction to JCT in Japan (消費税)
Japan's Consumption Tax (消費税 — JCT) applies at a standard rate of 10% (comprising 7.8% national + 2.2% local consumption tax), with a reduced 8% rate for specified food, beverages, and print newspaper subscriptions. Administered by the National Tax Agency (NTA). October 2023 introduced the Qualified Invoice System (インボイス制度 — Inboisu seido): only businesses registered as Qualified Invoice Issuers (QII) may issue invoices that entitle customers to full input tax credits. From 1 October 2029, non-registered supplier invoices provide zero input credit.
💡 Key facts for non-Japanese businesses
Non-Japanese businesses must register through a Japanese Tax Agent (税務代理人) — a certified public accountant (CPA), tax accountant (税理士), or authorized firm. The Tax Agent files the QII registration with the NTA, resulting in a unique T-number (e.g., T1-2345-6789-1234) that must appear on all qualifying invoices.
VAT REGISTRATION
JCT Registration in Japan
Non-resident digital service providers must register immediately upon their first B2C sale to a Japanese consumer — no threshold. Other non-residents register when prior-year taxable sales to Japanese customers exceed JPY 10 million. Registration is via a Japanese Tax Agent (税理士/CPA) who files the QII registration with the NTA. Approval typically takes 4–8 weeks, resulting in a unique T-number.
VAT RATES
Japanese JCT Rates
Japan applies two consumption tax rates depending on the type of goods or services supplied.
When do you need to register?
You need a Japanese JCT T-number (Inboisu QII registration) if you:
✓ Key facts for non-Japanese businesses
✓ Supply digital services (SaaS, streaming, apps, e-books) to Japanese consumers — register immediately
✓ Supply goods or B2B services to Japanese customers exceeding JPY 10 million in prior-year taxable sales
✓ Want Japanese B2B customers to claim full input tax credits on your invoices (T-number required)
✓ Import goods into Japan for supply to Japanese customers
⏱ Processing Time
4–8 weeks
QII registration via Tax Agent — T-number issuance timeline
📞 Tax Authority
NTA / 国税庁
National Tax Agency
VAT Number Format
T-number T + 13 digits
e.g. T1-2345-6789-1234 (must appear on all Qualified Invoices)
Fiscal Rep Required
Tax Agent (税務代理人) required
Licensed CPA or tax accountant (税理士) — not jointly liable but practically mandatory
Registration process
1
Assess your JCT obligations
We review your supply types to confirm whether registration is required immediately (digital services B2C) or upon exceeding the JPY 10 million threshold.
2
Appoint a Japanese Tax Agent (税理士/CPA)
A certified Tax Agent must be appointed to file the QII registration application with the NTA on your behalf.
3
File QII registration with NTA (e-Tax system)
The Tax Agent submits the Qualified Invoice Issuer registration via the NTA's e-Tax system. We coordinate all NTA correspondence in English and Japanese.
4
Receive your T-number
Typically 4–8 weeks. Your T-number (T + 13 digits) must appear on all invoices issued to Japanese customers. Annual JCT returns are filed within 2 months of fiscal year-end via e-Tax.
Non-registered suppliers face increasingly restricted input credit claims: 80% credit until 30 September 2026, 50% credit until 30 September 2029, then 0% credit thereafter. This creates significant commercial disadvantage. GlobalTrade Business recommends QII registration well in advance of the next deadline.
RETURNS & DEADLINES
Japanese JCT Returns
Japan applies two consumption tax rates depending on the type of goods or services supplied.
⏱ Processing Time
2 months after fiscal year-end
Annual JCT return deadline (e-Tax)
Quarterly
2 months after quarter-end
For taxpayers with annual JCT >JPY 48 million
Annual (CA12)
2 months after fiscal year-end
Standard annual JCT return deadline
Frequency determination
Annual JCT return — due within 2 months of fiscal year-end (most businesses).
Quarterly filing for annual JCT liability >JPY 48 million.
Simplified method available for annual JCT <JPY 5 million.
E-invoicing in Japan (Inboisu / QII)
Japan's Qualified Invoice System (インボイス制度 — Inboisu seido), effective October 2023, requires all QIIs to include the T-number on invoices. All JCT returns must be filed electronically via NTA's e-Tax system — paper returns are no longer accepted. The critical commercial deadline is 30 September 2029 — after which non-registered supplier invoices provide zero input credit.
REVERSE CHARGE
Japanese Reverse Charge (JCT)
When a non-resident foreign business provides B2B services to a Japanese company without being registered for JCT, the Japanese recipient applies reverse charge: it withholds 10% of the service fee, remits it to the NTA, and claims the withheld tax as an input credit. If the non-resident registers as a QII, the reverse charge no longer applies — the customer pays the full invoice and the registered foreign supplier files its own returns.
INTRASTS & ESL
Japan Reporting — No Intrastat
Japan is not an EU member state. There are no Intrastat or EC Sales List obligations. Japan's equivalent trade reporting is administered by the Ministry of Finance through customs export and import declarations (輸出申告 / 輸入申告), which capture trade flow data but carry no periodic VAT-linked filing equivalent to Intrastat.
📦 Intrastat Arrivals Threshold
Mandatory
輸入申告 via NACCS
🚚 Intrastat Dispatches Threshold
Mandatory
輸出申告 via NACCS
📊 ESL Frequency
Annual
2 months after fiscal year end
📅 Intrastat Deadline
2 months
Of the following month
How GlobalTrade Business Can Help
Your complete Japan JCT partner
From first registration to ongoing returns — we manage the full compliance lifecycle so you can focus on your business.
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