Simple and smart VAT Japanese Consumption Tax (JCT) compliance solutions from the world to Japan

OPTI can be your business partner in Japan to manage your JCT

What a type of customers can benefit?

E-commerce seller

Digital goods seller

OPTI will assist customers through our specialized staff who are highly knowledgeable about Japan when the following applies:

Non-resident corporations generating (or will generate) sales on E-commerce and digital goods in Japan.

Companies having no party to consult with about JCT

Companies hoping to outsource cumbersome tasks to a local company

Companies not allowed to breach compliance for any reason

We are selected by customers for the following three reasons

Simple JCT registration　

Based on our business experience for the last 10 years, OPTI simplifies the processes necessary for a registration with the web. This helps with the easy completion of the highly complex application for a JCT registration.

Fast JCT return

Based on opinions concerning past transactions from 100 or more customer companies, OPTI automates all processes with technology. This enables customers to receive a JCT return with high efficiency.

Professional JCT consulting

OPTI carries out many transactions with over 100 leading global companies and is very familiar with the Japanese tax system. Therefore, we can satisfy a variety of needs from a variety of customers regarding the JCT.

Why OPTI

We are the No.1 JCT service provider in Japan

We have more than 400 clients in over 10 years

We provide electronical solutions to complete complicated works in 1 day

Clients

Let our professional Tax Consultants do it for you.

◆What is the JCT?

The JCT is imposed on i)transfers of assets and ii)provisions of business services, conducted in Japan by enterprises for a consideration and goods imported from foreign countries at the time of their import. The tax is borne by consumers and paid by enterprises.

◆What is JCT rate?

The JCT rate increased to 10% on October 1, 2019. At the same time, the reduced tax rate system was adopted. This resulted in the introduction of multiple tax rates. Specifically, the 8% tax rate is applied to transfers of foods and beverages excluding alcohol and eating out. Including transfers of land and services offered by long-term care insurance, some transactions are non-taxable because of the nature of the JCT and social policy considerations.

◆What is the Tax Agent?

The Tax Agent is a Japanese corporation or person doing clerical work on tax payments for non-residents operating taxable activities in Japan who are required to file a tax return and pay tax. Such persons are required to appoint a Tax Agent and OPTI can be your Tax Agent.

◆Who is the Taxable Enterprise?

(Under what circumstances is it required to perform JCT registration?)

An enterprise becomes a Taxable Enterprise when its Taxable Sales are above 10 million yen for the Business Year prior to the Base Period (the fiscal year in the case that the enterprise is a corporation). In the case that Taxable Sales are above 10 million yen for the first half of a Base Period, an enterprise becomes a Taxable Enterprise from the following fiscal year even if the Taxable Sales are 10 million yen or less for the entire Base Period. A Taxable Enterprise is required to perform JCT registration in advance and file a tax return for at least 2 years after registration.

◆What is the Taxable Sales?

It means sales that satisfy all of the following four conditions.

1) Effectuated in Japan

2) Effectuated by a business for its business purposes

3) Effectuated for a compensation

4) Effectuated by the transfer or lease of assets or by the provision of services

◆What is the Base Period?

The Base Period represents the Business Year (fiscal year) of the headquarters of a non-resident corporation. It ranges from January 1 to December 31, when the headquarters settles accounts in December.

◆What is the Tax Exempt enterprise?

An enterprise is exempted from tax obligation for a Business Year when its sales are 10 million yen or less for the relevant Base Period. But a Tax Exempt enterprise is allowed to voluntarily select to be a Taxable Enterprise. No rule is established to prohibit a Tax Exempt enterprise from imposing JCT on taxable transactions.

◆What is the simplified tax system?

If Taxable Sales in the Business Year prior to the Base Period are 50 million yen or less, and the notification form has been submitted in advance to a tax office, it is authorized to calculate tax credit for purchases from Taxable Sales without calculation of taxes of actual taxable purchases.

Flow of registration

1) To receive a list of the necessary documents for by downloading from our website
2) To prepare and sign the necessary documents and upload their copies to our website
3) Tax Agent to check the uploaded documents
4) To send originals of the necessary documents to us
5) Tax Agent to submit the necessary documents to a tax office

Flow of annual tax return

1) To receive a list of the necessary documents by downloading from our website
2) To prepare the necessary documents and data and upload their copies to our website
3) Tax Agent to check the upload copies
4) Tax Agent to inform the JCT payment amount
5) To check the JCT payment amount
6) To pay taxes to a tax office mediated by a Tax Agent

Japanese consumption tax OPTI registration flow

Japanese consumption tax registration flow

Let our professional Tax Consultants do it for you.

Q&A

About our services

Q1. How much is OPTI’s fee for the JCT registration and tax return?

A1. We offer three services: i)JCT registration, ii)Acting as your Tax Agent and iii)Supporting for annual tax return. The fee depends on the size of the transactions made in Japan and the necessary manhours. Initially please fill in this form, then we will send you a proposal in which the fee is stated.

Q2. How much time does OPTI take for JCT registration?

A2. It takes a week or less when all original documents are prepared.

Q3. Is it cumbersome to register as a Taxable Enterprise of JCT at the tax office and file a tax return?

A3. It is not cumbersome because it is possible to perform the registration and file a tax return with OPTI’s advanced web-based system.

About JCT system

Q4. When is it required to perform the JCT registration?

A4. It is required to perform the registration immediately when Taxable Sales are above 10 million yen. It is preferable to perform the registration when Taxable Sales are expected to be above 10 million yen.

Q5. When is it required to file a tax return?

A5. The tax return and tax payment are performed at a tax office within 2 months from the day after the end of the Base Period.

Q6. Is it possible to pay taxes to a Japanese tax office from abroad?

A6. The tax payment is mediated by a Tax Agent.

Q7. Is it impossible to impose JCT on consumers when the JCT registration is not performed?

A7. JCT shall be imposed on transactions deemed as a taxable transaction in Japan even when JCT registration is not performed.

Q8. Our annual Taxable Sales are below 10 million yen. Is it unnecessary to impose JCT on consumers?

A8. JCT shall be imposed on transactions deemed as a taxable transaction in Japan even when the transactions are made by a Tax Exempt enterprise.

Q9. Is JCT refundable?

A9. JCT is refunded when the amount of JCT on purchases by non-resident corporations/sole proprietors is more than the amount of JCT on Taxable Sales by them. Expenses paid by individuals are also refunded, but this is outside the coverage of our services.

About your case

Q10. We don’t know whether JCT is imposed on our transactions.

A10. We can respond in generalities. For ad hoc cases however, we respond after a review with specialists, which may be charged. Initially, please fill in this form.

Let our professional Tax Consultants do it for you.

Disclaimer

We give no guarantee of the legality and accuracy of the information about the matters stated in this site. The stated information is obtained from reliable sources, but we are not responsible for consequences stemming from use of the information such as mistakes or a lack of complete information.