Tag: e-Tax

3. VAT Compliance ④ Are VAT returns submitted electronically or via paper forms?

Posted on by KAZUHISA MOCHIZUKI

In Japan, VAT returns are typically submitted electronically. Here’s how it works:

  1. Electronic Filing:
    Businesses use electronic systems provided by the National Tax Agency (NTA) to prepare and submit VAT returns online.
  2. Electronic Data preservation:
    Businesses are required to retain electronic sales and purchase records for a period of seven years. This includes electronic receipts and invoices.
  3. Online Portals:
    The NTA offers online portals where businesses can log in securely and submit their VAT returns electronically.
  4. Paper Forms (in limited cases):
    Companies with a registered capitals of JPY100 million or more must use electronic system to submit VAT returns. Other companies and proprietary businesses are allowed to submit paper forms.

Electronic filing offers several advantages, including speed, accuracy, and convenience. It also facilitates communication between businesses and tax authorities, streamlining the overall process. Working with a Japanese tax professional can ensure that your business is set up for electronic filing and compliance with VAT regulations.
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.