Overview

Consumption tax (消費税) is an indirect tax on the sale of goods and provision of services. Businesses file and pay the difference between consumption tax collected on sales and consumption tax paid on purchases (input tax credit). Since the Invoice System (インボイス制度 / 適格請求書等保存方式) was introduced in October 2023, the requirements for claiming input tax credits have changed.

Key things to know

• Corporate returns are due within 2 months of fiscal year-end; individuals by March 31 • An interim return is required if prior year consumption tax exceeded ¥480,000 • Under the Invoice System (インボイス制度), qualified invoices must be retained for input tax credits • The simplified tax calculation system (簡易課税制度) is available as an option • Even if base period sales are under ¥10 million, registering as a Qualified Invoice Issuer (適格請求書発行事業者) makes you a taxable business

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