- Japan intends to make digital platform operators liable for collecting Japanese VAT on cross-border supply of digital content and services
- The proposed reform would shift the responsibility of collecting Japanese VAT from overseas suppliers to intermediary digital platform operators
- The new regime aims to improve VAT enforcement on cross-border transactions and eliminate VAT leakage
- Digital platform operators with total consideration exceeding 5 billion Japanese yen per year will be subject to this new VAT treatment
- The Japanese tax authorities will specify affected platform operators and operators must notify foreign suppliers
- Platform operators will need to adjust settlement flows, establish administrative flows, and make other arrangements to comply with the new VAT treatment
- The reform proposal is referred to as the “platform taxation” regime and aims to ensure a level playing field between domestic and foreign suppliers in Japan.
Source: news.bloombergtax.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.
