Taxable base of consumption tax in Japan

For a domestic taxable transaction, the taxable base of consumption tax is the consideration for the transaction. In terms of import taxable transactions, the value or worth of the imported goods for customs duty purposes plus the amount of any customs duties and other excise taxes is the taxable base.


Consumption tax rate in Japan

The present consumption tax rate is 8 percent that was increased and expanded from 5 percent on April 1, 2014. Moreover, the rate will increase to 10 percent. The increase is planned to be operative on October 1, 2015, however, it was rescheduled.


Taxpayers as an importer in Japan

In view of import taxable transactions purposes, an importer is obligated to pay consumption tax to the government or Customs office unless the import is tax-exempt under a threshold rule. Consumption tax on import is applied on any importer regardless if import is implemented for business purposes.