Consumption of Accounting and Tax Services in Japan: What Businesses Must Know
An insight into Japan's Consumption Tax is an essential resource for any business that has a presence in the country. Japan currently applies a 10 percent consumption tax to most goods and services, a reduced rate of 8 percent to some food and beverage items, and to newspapers. This tax is comparable to VAT in other countries and is an important aspect of business in Japan. Not only domestic companies but also overseas firms are required to comply with such a tax system; it is crucial to learn the route to navigate through this tax system for both legal compliance and financial planning. A business in Japan must file for consumption tax as an obligation if the value of its taxable sales in the base period (ca. Previous 2 years) was above JPY 10 million. Once registered, businesses are required to submit consumption tax returns annually, but some are required to do so quarterly or monthly, depending on their turnover. This is where professional Accounting and Tax Services in ...