- Japan plans to introduce changes to the taxation of online platforms on 1 April 2025
- The growth of the digital market in Japan is strong, with in-app sales expected to surpass JPY 5 trillion in 2024
- Under current rules, foreign suppliers of digital services are required to collect and remit JCT, but many are unaware or struggle to comply
- The proposed new platform taxation rules aim to address the perceived inequality in the application of JCT
- The new rules would consider B2C digital services provided by foreign businesses via a specified platform operator as services provided by the platform operator
- Specified platform operators would charge and remit JCT on B2C digital services, while B2B services would continue to be treated as nontaxable
- Platform operators would need to submit a notification to the NTA if facilitated sales exceed JPY 5 billion to be designated as a specified platform operator
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
