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Consumption Tax

消費税課税事業者

What this setting means

The "Consumption Tax" (消費税) setting applies to businesses that are required to file and pay consumption tax. You become a taxable business (課税事業者) if your taxable sales in the base period (基準期間, generally the fiscal year two years prior) exceed ¥10 million, or if you have registered as a Qualified Invoice Issuer (適格請求書発行事業者). Since the Invoice System (インボイス制度) launched in October 2023, many previously tax-exempt businesses (免税事業者) have transitioned to taxable status.

Who should enable this

Enable this if any of the following apply: • Taxable sales in the base period (基準期間) exceed ¥10 million • Registered as a Qualified Invoice Issuer (適格請求書発行事業者) • Taxable sales in the specified period (特定期間, first half of prior fiscal year) exceed ¥10 million • Filed a Consumption Tax Taxable Business Election form (消費税課税事業者選択届出書) Newly established corporations with capital of ¥10 million or more are taxable from the first fiscal year.

Related dates

References

  1. NTA: How Consumption Tax Works
  2. NTA: Invoice System Overview
  3. NTA: Taxable Business Determination