To check your tax obligation status, click here.
For sellers who currently have Consumption tax settings set to No, reports related to settlement and orders will change. Until now, reports and API output related to settlement and orders only displayed prices inclusive of tax. After the change, they will display the tax-exclusive price and tax amount separately. More information about prices shown on reports before and after the change can be found below. To check if you need to modify your system and how to, please refer to a guideline
Before the changes
After the changes
On the Monthly Summary Report (pdf) and Custom Summary Report (pdf) that can be downloaded from Seller Central > Reports > Payments > Date Range Reports > Generate Report, some items are shown with tax included, and others exclusive of tax. See the list of items and how they are shown (tax-inclusive or tax-exclusive) below.
|Product sales (non-FBA)||Tax-exclusive|
|Product sale refunds (non-FBA)||Tax-exclusive|
|FBA product sales||Tax-exclusive|
|FBA product sale refunds||Tax-exclusive|
|FBA lost and damaged inventory credit||Tax-inclusive|
|Shipping credit refunds||Tax-exclusive|
|Gift wrap credits||Tax-exclusive|
|Gift wrap credit refunds||Tax-exclusive|
|Promotional rebate refunds||Tax-exclusive|
|A-to-z Guarantee claims||Tax-inclusive|
|Cost of points granted||Tax-inclusive|
|Cost of points returned||Tax-inclusive|
|Recovered amount - amount recovered from buyers using Cash on Delivery||Tax-inclusive|
|Transfers to bank account||Tax-inclusive|
|Failed transfers to bank account||Tax-inclusive|
|Charges to credit card||Tax-inclusive|
|Seller fulfilled selling fees||Tax-inclusive|
|FBA selling fees||Tax-inclusive|
|Selling fee refunds||Tax-inclusive|
|FBA transaction fees||Tax-inclusive|
|FBA transaction fee refunds||Tax-inclusive|
|Other transaction fees||Tax-inclusive|
|Other transaction fee refunds||Tax-inclusive|
|FBA inventory and storage fees||Tax-inclusive|
|Refund administration fees||Tax-inclusive|
|Cost of Advertising||Tax-inclusive|
|Refund for Advertiser||Tax-inclusive|
The changes will happen on October 1st 0:00 (Japanese time), however, there may be a slight time difference between sellers and sellers. You can experience the changes beforehand by changing your tax obligation status in Consumption tax settings from “No” to “Yes” by yourself. If you want to experience the changes beforehand for test, please change tax obligation status from “No” to “Yes”. After October 1st 0:00, the changes will automatically happen regardless of tax obligation status in Consumption tax settings.
From October 1, 2019, an invoice-based method of consumption tax will be applied. This requires the total amount for each tax category to be shown on invoices and other documents. Accordingly, receipts issued to buyers by Amazon.co.jp will show the tax rate and tax amount for each item purchased, as well as the total amount paid under each tax rate. In order to show these tax rates and tax amounts for purchases from all sellers, Amazon.co.jp will begin adding together the amount of tax paid on all products from all sellers, including sellers with no tax obligations in Japan (sellers who currently have “Consumption tax settings” set to “No”). In the past, Amazon.co.jp did not calculate total tax amounts for sellers who had “Consumption tax settings” set to “No,” so these tax amounts were not shown on reports. As a result of these changes, total tax amounts will be calculated and shown on reports. For sellers who had “Consumption tax settings” set to “Yes,” we have been calculating tax amounts since November 2018, so there will be no new changes.
Sellers must set the tax rates for their products using product tax codes. Tax amounts are calculated based on the product prices and tax rates set by sellers. For more information about product tax codes, see Setting product tax codes.
No. Simply register tax-inclusive prices from the Manage Inventory or Files pages at Seller Central as before. Consumption tax amounts will be calculated from these tax-inclusive prices based on whether the product is taxable or not and where it is shipped to. For details, refer to the method for calculating consumption tax amounts described at the link below.
C-Tax Calculation Methodology (English)
No. The changes apply to everyone.
Amazon cannot provide guidance on tax obligations, tax calculation methods, the suitability of same, or similar topics. Please inquire at the National Tax Agency or your closest tax office.
When a seller with domestic Japanese tax obligations ships a product overseas, the buyer is charged the tax-inclusive price set minus the tax amount. In this case, Settlement Reports and the Finance API will not show a “Tax” item, and Order Reports and the Order API will show the tax-exclusive price and a tax amount of 0. Overseas shipping can be enabled or disabled at Shipping Settings.
No. Amazon does issue invoices and receipts to sellers on behalf of sellers, but sellers must pay the consumption tax for their sales to the government themselves.
Order information that is already finalized when the changes take effect will not be affected. New orders finalized after the changes, along with orders that are “Pending” due to convenience store settlement or other reasons, will be subject to the changes. Note that, after the changes, if data from before the changes is obtained, it will still be displayed in the old way (without tax amounts shown).
They are rounded to the nearest yen. (A 100 JPY product’s tax-exclusive price is 93 JPY*)
*100 ÷ 1.08 = 92.59...
When a buyer buys more than one of the same product at the same time, Amazon.co.jp first calculates the consumption tax amount on each individual product (rounding up or down to the nearest yen), and then adds these amounts together. The same applies to shipping fees. For this reason, the tax amount may be different than it would be if the sales prices were added together first and then the tax amount calculated using the tax rate. For example, if a customer buys 10 units of a product that costs 100 JPY (tax-inclusive) at the same time, the tax amount for each product (7 JPY) is calculated, and these are added together to give a total tax amount of 70 JPY (7 JPY × 10 items). The tax-exclusive price is therefore 930 JPY (total tax-inclusive price of 1,000 JPY minus tax of 70 JPY). If the total shipping charge for the 10 items is 648 JPY, then the shipping fee for each individual item is calculated (648 JPY ÷ 10 = 65 JPY, rounding to the nearest yen), and the tax amount for shipping on each item is calculated based on that (65 JPY minus (65 JPY ÷ 1.08) = 5 JPY). The total tax amount for shipping fee is therefore 50 JPY (5 JPY × 10 items), and the tax-exclusive shipping fee is 598 JPY (total tax-inclusive shipping fees of 648 JPY minus tax of 50 JPY).
|Product price||Tax-exclusive||Tax amount||Shipping||Tax-exclusive||Tax amount|
|Calculated per item and then added together||1,000 JPY||930 JPY||70 JPY||648 JPY||589 JPY||50 JPY|
|Calculated from total price||1,000 JPY||926 JPY||74 JPY||648 JPY||600 JPY||48 JPY|
For most regular buyers, prices on the Amazon will be shown inclusive of tax as before. Consumption tax amounts will also be shown at settlement and on invoices.
For B2B buyers, both tax-exclusive and tax-inclusive prices will be shown on the Amazon site. For buyers using Pay by Invoice, consumption tax amounts will also be shown for each order.
No. Simply register tax-inclusive prices from Manage Inventory or Files at Seller Central as before. Consumption tax amounts will be calculated from these tax-inclusive prices based on the product tax codes you set and where your products are shipped to. For information on how consumption tax amounts are calculated, click here.
Tax amounts will be added to the information shown, as shown below. (Tax-exclusive prices will not be shown.)
Price: 1,580 JPY
Consumption tax: 117 JPY
Gift wrap: 100 JPY
Gift wrap (tax amount): 7 JPY
Shipping: 340 JPY
Shipping (tax amount): 25 JPY
No. There will be no changes to how returns are handled.
(1): Tax amounts will be shown to the right of each of the tax-inclusive prices in the order contents area.
(2), (3): In the order contents area, both tax-exclusive and tax-inclusive prices will be shown at locations (2) and (3).
Prices will be shown differently.
Before change: Only tax-inclusive price shown, tax amount was 0.
After change: Tax-inclusive price still shown, but tax amount shown too.
item-price (price of product), shipping-price (shipping fees), gift-wrap-price (gift wrap fees) will still be shown tax-inclusive. item-tax (tax amount for product), shipping-tax (tax amount for shipping fees), gift-wrap-tax (tax amount for gift wrap fees) are currently shown as 0, but after the changes these will show the tax amount.
Prices will be shown differently. Previously, only tax-inclusive prices were shown. This will change so that tax-exclusive prices and tax amounts are shown separately.
Before change: Only tax-inclusive prices shown, no information about consumption tax.
After change: Tax-exclusive price and tax amount shown separately.
Previously, Principal (product price), GiftWrap (gift wrap fees), Shipping (shipping fees), and COD were displayed inclusive of tax. This will change so that prices are displayed exclusive of tax, and tax amounts are shown on separate lines.
Tax-exclusive prices will be shown for the following items: Product sales, Shipping fees, Gift wrap fees, Promotional rebates, Other (if COD is used)
Columns will not be added to show tax amounts. Note also that the total will still be tax-inclusive.
In Settlement Reports and the Finance API, tax-exclusive prices and tax amounts will be shown. On Order Reports and the Order API, tax-inclusive prices will be shown. (Example: Shipping -324, TaxDiscount -26)
Promotion amounts returned by the Finance API will be returned separately as tax-exclusive prices and tax amounts as shown below.
Processing will depend on when an order changes from “Pending” to “Unshipped.” Data for an order that goes from “Pending” to “Unshipped” before the changes take effect will be shown the old way. Data for an order that goes from “Pending” to “Unshipped” after the changes take effect will be shown the new way. Old and new data display methods may be mingled in the same report. For more information about “Pending” orders, see the Help page
Order-related changes: The “Tax amount” item will continue to be shown/used, but prices will still be inclusive of tax as in the past. These changes will affect: Order Report, Fulfillment Report, Order API, Fulfillment API
Settlement (payment)-related changes: Prices will be changed to tax-exclusive prices. Additionally, a new “Tax amount” item will be shown/used. These changes will affect: Settlement Report, Settlement Report (v2), Settlement Report (XML), Finance API
* “Tax amount” will not be shown in Date Range Reports. As stated in the answer to FAQ #18, “Once consumption tax amounts begin to be shown, will tax-exclusive prices and tax amounts be shown on Custom Transaction Reports?”, prices will be changed to tax-exclusive prices, but a “Tax amount” item will not be added.