Type: Legislation Proposal
Japan is poised to join the ranks of Australia, New Zealand, and the EU in imposing obligations on digital platforms to collect and remit Consumption Tax for transactions carried out by non-resident providers on their platforms. This is in line with the Deemed Reseller regime, which could potentially shift the responsibility of calculating and charging Japanese Consumption Tax on marketplace sales to domestic consumers.
Non-resident platforms may also need to register for tax under this regime.
This proposal follows the introduction of Consumption Tax on electronically supplied services in Japan in 2015. The proposed measure, highlighted in the 2023 tax proposals, could become effective from 1st April 2024 if approved.
Effective date: April 1, 2024