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Overview of Japan Consumption Tax (JCT) Supported in Kintsugi

Updated 2 months ago

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.


What Is JCT?

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.


What Kintsugi Supports

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


Key Facts at a Glance

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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