RSM Japan has the expertise and knowledge to deliver various indirect tax compliance services. In particular, we are specialists in providing consumption tax filing and bookkeeping support to a broad range of clients. This tax can be complicated when it is applied to your business too. As the system does not rely on invoices, the requirements can often be misunderstood.
This is where our indirect and consumption tax specialists can be of service. We provide holistic support tailored to your organization. In doing so, we can fully assess your obligations in terms of consumption tax and other indirect taxes such as import duty. Furthermore, we can help you devise strategies and frameworks that will ensure your continued compliance in the long term.
What is Consumption Tax?
First introduced in 1989, consumption tax is the Japanese version of Value Added Tax (or VAT). It is applied to taxable sales in Japan where one of four conditions is met. All organizations who are involved in the import of goods or provision of services in Japan must meet their consumption tax obligations. While the current rate is charged at 10% as of 1 October 2019, there is also an 8% reduced rate on food and drink, or newspapers issued twice a week (or more).
It is not only rates that can change, but the system itself. As reforms are proposed, it becomes even more essential to seek expert Consumption Tax advisory services. It is especially relevant to non-Japanese investors who require that dedicated indirect tax compliance support. Our role is to provide that in a proper and timely way. By doing so, our clients can take some benefits in connection with the business model and profit structure.
Our indirect tax compliance services
We offer various indirect tax compliance services to suit all our clients' needs. Specific examples of our expertise include:
- Analysis of Consumption Tax status and registrations. You do not need to formally register for the tax with Japanese tax authorities, however. Your first filing will be accepted as registration. An overseas organization does require a Japan-based tax agent to liaise with the National Tax Agency.
- Indirect tax simulation and availability
- Import duty advice
- Guidance to the bookkeeping and tax declaration
- Consumption Tax filing support
- Keeping you updated about the latest reforms to the Consumption Tax – and what that means for your organization whether you're a resident or non-resident entity.
Why you should choose RSM Japan
Our clients trust RSM Japan for indirect tax compliance services due to the depth of knowledge we possess. Our attention to detail and commitment to supporting your organization in a relevant way is what stands our specialists apart. From import duty questions to Consumption Tax filing support, contact us today and let us help you overcome any compliance challenges you face.