If you’re selling on Amazon Japan via FBA, you must comply with Japan’s Consumption Tax (JCT). Japan is a high-value Amazon market in Asia, but its rules — especially for overseas sellers — can be complex.
JCT Rates in Japan
Japan introduced Consumption Tax (JCT) in 1989.
- Standard rate: 10% (applies to most goods and services)
- Reduced rate: 8% (applies to food, beverages, and newspaper subscriptions)
- Zero rate (0%) applies to exports and certain international services.
When Do Amazon Sellers Need to Register?
- Japanese businesses must register if their taxable sales exceed 10 million JPY in either:
- The base period (two years prior), or
- The first half of the previous year.
- Non-resident Amazon sellers must register if:
- You store goods in Amazon Japan’s fulfilment centres (FBA), or
- You provide digital or electronic services to Japanese consumers.
⚠️ For non-resident FBA sellers, there is no threshold — you must register for JCT from the very first sale if your goods are stored in Japan. If you ship directly cross-border without storing goods, JCT is collected at customs instead.
Qualified Invoice System (from October 2023)
- Japan launched a Qualified Invoice System in October 2023.
- Only registered Qualified Invoice Issuers can issue invoices that allow customers (especially B2B buyers) to claim input tax credits.
- If you’re selling on Amazon Japan and not registered under this system, your business customers cannot recover JCT, which could make your offers less competitive.
Fiscal Representatives & Agents
- Non-resident sellers must appoint a local tax agent in Japan to handle JCT registration, filings, and communication with the National Tax Agency (NTA).
- This is a legal requirement for compliance.
Registration & Filing
To register for JCT, you’ll typically need:
- Business incorporation documents
- Proof of trading activity (Amazon seller account, invoices, contracts)
- ID for directors or business owners
- Appointment of a Japanese tax agent
Registration is processed by the National Tax Agency (NTA) and usually takes 2–4 weeks. Once complete, you’ll receive your JCT registration number, which must also be updated in Amazon Seller Central.
Filing requirements:
- JCT returns are typically filed annually, though larger sellers may need to file quarterly.
- Returns and payments are submitted electronically via the NTA e-Tax portal.
- Since October 2023, businesses must issue Qualified Invoices to remain compliant.
Risks for FBA Sellers
- Late or missed registration can result in backdated JCT liabilities, penalties, and interest.
- Failure to comply with the Qualified Invoice System can make your business less competitive on Amazon, as B2B buyers won’t be able to reclaim JCT.
- Non-compliance may also put your Amazon account at risk of suspension.
Final Thoughts
For Amazon FBA sellers, JCT in Japan applies from the first sale if your goods are stored locally. With the Qualified Invoice System now in place and mandatory tax agent representation for foreign sellers, compliance is more important than ever to succeed in Japan’s growing e-commerce market.
👉 Watch the full video https://youtu.be/0LRbwQdFW4o?si=OhIOEklDkWbkn5io where I explain Japan’s JCT rules for FBA and cross-border sellers in detail.