• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 11/20/2013

Japan - Consumption tax on cross-border supplies of services, intangibles 

November 20:  The Ministry of Finance on 14 November 2013 presented a report addressing the consumption tax treatment of cross-border supplies of services and intangibles at a meeting of a discussion group of the government’s tax commission.

The proposals contained in the consumption tax report will be subject to further discussion, and changes are anticipated because there are various challenges in these proposals (such as how to address operational issues for the tax authorities and the additional administrative burden for domestic business customers and foreign suppliers).

The report (known in English as “Consumption Tax Treatment of Cross-Border Supplies of Services and Intangibles”) includes descriptions of:

  • Current situation
  • Change of the place of taxation
  • Compliance rules – B to C supplies
  • Compliance rules – B to B supplies

Read a November 2013 report [PDF 174 KB] prepared by the KPMG member firm in Japan: Report on ‘Consumption Tax Treatment of Cross-Border Supplies of Services and Intangibles’

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