Japan imposes a national consumption tax known as Japan Consumption Tax (JCT), administered by the National Tax Agency (NTA). Kintsugi supports JCT compliance for businesses selling digital and SaaS products to customers in Japan, whether your business is based in Japan or abroad.
JCT is Japan's equivalent of a value-added tax (VAT). It applies to most goods and services sold or consumed in Japan, including digital services and SaaS subscriptions. There is no local or prefectural equivalent — JCT is imposed at the national level only.
Kintsugi currently supports JCT compliance for the following business models:
B2B SaaS (business-to-business software-as-a-service)
B2C SaaS (business-to-consumer software-as-a-service)
Digital and electronic services delivered to customers in Japan
Item | Details |
|---|---|
Tax Name | Japan Consumption Tax (JCT) |
Administering Authority | National Tax Agency (NTA) |
Standard Rate | 10% |
Reduced Rate | 8% (food, non-alcoholic beverages, and qualifying subscription newspapers) |
Zero Rate | 0% (exports and qualifying international services) |
Registration Threshold | JPY 10 million in taxable sales |
Tax ID Format | T + 13 digits (e.g., T1234567890123) |
Filing Currency | Japanese Yen (JPY) |
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