Question: For a Japanese corporation who receive “B2C (business to customer) electronic service” from a foreign corporation, is there any disadvantage depending on whether the foreign corporation is registered at National Tax Agency (NTA) or not?
Answer: Yes, the treatment of the purchase tax credit on consumption tax (C-tax) is different.
From October 2015, electronic service provided by a foreign corporation to a Japanese corporations is subject to C-tax in Japan.
Regarding the “B2C electronic services” under “electronic service provided by the foreign corporation”, only services provided by the registered foreign business can be applied to a purchase tax credit for Japanese corporations. On the other hand, if the foreign corporation is not a registered foreign business, a purchase tax credit is not allowed to Japanese corporations. Therefore, it can be said that it will be disadvantageous for Japanese business customers. The foreign corporation is required to be registered at NTA and file annual C-tax return for Japanese corporations to claim a purchase tax credit.
As of April 2017, there are 71 foreign corporations registered. You can see the list on NTA’s website. The registered foreign business is required to include specific information, such as “its registration number” and “indication that the registered foreign business is liable for consumption tax”, etc. on an invoice. Otherwise, Japanese corporations are not allowed to claim a purchase tax credit.
For more details about the B2C electronic service, please refer to our blog on December 2015.
Please contact us, TOMA Consulting Group, if you are interested in registration at NTA.
On-demand Seminar Information
A Guide to the Qualified Invoice System (On-demand Seminar)
The Qualified Invoice System, starting October 2023, introduces new changes to the Japanese consumption tax rules and will affect many businesses across Japan.
The system requires a redesign of existing invoices, as well as a review of the business’ consumption tax status and suppliers.
This online seminar aims to give you an overall understanding of the Qualified Invoice System and provide measures to help you navigate the new requirements.
＞＞Click here for seminar details and registration
消費税の登録国外事業者でないと顧客に迷惑が？
Question: 外国企業から「消費者向け電気通信利用役務の提供」を受ける国内事業者にとって、その外国企業が日本の税務署に登録された事業者（登録国外事業者）であるかどうかによって影響がありますか？
Answer: 消費税の仕入税額控除の取り扱いに違いがあります。
2015年10月より、外国企業が行う国内事業者向け電気通信利用役務の提供について、消費税が課かるようになりました。
「外国企業が行う電気通信利用役務の提供」のうち「消費者向け電気通信利用役務の提供」に関しては、登録国外事業者から提供される役務についてのみ、受け手である国内事業者に対して仕入税額控除が認められます。
一方、外国企業が登録国外事業者でない場合、日本の事業者である日本の顧客は、仕入税額控除を取ることができないため不利益を与えるといえます。外国企業は、日本の顧客が仕入税額控除を取れるように、登録国外事業者となっておく必要があります。
なお、登録国外事業者は、請求書に「登録番号」及び「課税資産の譲渡等を行った者が消費税を納める義務がある旨」等の記載が求められますので、注意が必要です。
消費者向け電気通信利用役務の取扱いの詳細は、2015年12月のブログでご紹介しておりますので、ご参照ください。
登録国外事業者の登録等についての詳細は、ＴＯＭＡコンサルタンツグループにお問合せ下さい。
