Japanese Consumption Tax

As all services provided by Amazon Japan G.K. are deemed to be transactions conducted in Japan, the services are subject to the Japanese consumption tax. As a result of the change of the parties, Amazon Japan G.K. will charge the consumption tax amounts for transactions with respect to the Selling on Amazon Services and the Fulfillment by Amazon on and after May 1, 2016. In addition, as the advertising service (sponsored product) transactions will be also subject to the Japanese consumption tax, Amazon Japan G.K. will charge the consumption tax amounts for the transactions on and after May 1, 2016 as well.

However, Sellers residing outside Japan will not be subject to the consumption tax on transactions with respect to the Selling on Amazon Services and the advertising service (sponsored product).

Taxable business operators paying the consumption tax on the services provided by Amazon Japan G.K. will be eligible for purchase tax credit. Please contact the competent tax office to confirm whether or not you as Seller are deemed as a taxable business operator.

What will decide whether or not Seller is a Japanese resident?

Each Seller will be decided based on its company address indicated in the Seller account information of the setup menu and its address information registered on the Seller Central.

Where can Seller confirm the consumption tax amount to be paid?

Amounts inclusive of the consumption tax will be indicated in various payment reports and transaction statements. The consumption tax amounts charged to Seller can be confirmed in commission statements to be issued each month. To access to the report, choose the " tax-related text library " located below the report tab and make the report displayed for any period of time as Seller requests.

Will sales commissions for products to be shipped overseas be also subject to the tax?

Sales commissions to be charged by Amazon to Sellers residing in Japan will be subject to the tax.

Where can details of procedures to apply for purchase tax credit be confirmed?

Please refer to the website of National Tax Agency of Japan (Japanese, English) for the information of purchase tax credit.

I have been using the Global Selling. Will the selling be subject to the consumption tax? If so, will the consumption tax be charged in JPY?

Sellers residing in Japan will be subject to the consumption tax. The consumption tax will be charged in the same currency as the one for sales commission according to the country in which the listing website is operated.