In Japan, businesses must register for VAT if they meet certain criteria:
- Domestic Businesses:
Japanese companies with taxable sales exceeding the specified threshold (typically 10 million yen in the base period) are required to register and collect VAT. - Non-Resident Businesses:
Foreign companies providing digital services to Japanese customers or conducting business that meets the turnover threshold must also register for VAT. - Import/Export Businesses:
Companies involved in importing goods into Japan or exporting goods from Japan need to comply with VAT requirements and may be required to register. - Voluntary Registration:
Businesses with lower turnover that expect to exceed the threshold in the near future, want to reclaim input VAT or are in the situation being required to issue the qualified VAT invoices can voluntarily register for VAT.
The information provided here is based on legislation as it stands on the date of publication and may not reflect subsequent changes. We advise clients to seek tailored professional advice before making any decisions based on this information.