Japan makes designated platforms liable for consumption tax on foreign sellers' B2C digital services from 1 April 2025
This page records one dated change. For the rules in Japan as they stand today, see the Japan guide →
- Jurisdiction
- Japan
- Tax
- Consumption Tax (JCT)
- Change type
- Digital services
- Status
- In force
- Impact
- FYI
- Announced
- 28 March 2024
- Effective
- 1 April 2025
- Instrument
- JP-ACT-Act-No-8-of-2024
- Authority
- National Tax Agency of Japan (NTA)
- Verified
- Fetched from official source · high confidence
Digital platform operators through which foreign businesses sell B2C electronic services in Japan, where those sales exceed JPY 5 billion a year, and the foreign sellers using them.
No action required — monitoring only. Platform taxation from 1 April 2025 applies to NTA-designated platform businesses. Monitor NTA specified-platform-business list for new designations.
The Diet enacted the FY2024 tax reform (added by Act No. 8 of 2024; its supplementary provisions set the 1 April 2025 start) on 28 March 2024, adding Article 15-2 to the Consumption Tax Act. From 1 April 2025, specified platform businesses designated by the NTA Commissioner are deemed to supply the B2C electronic services that foreign businesses sell through their platforms; the platform, not the foreign seller, files and pays the consumption tax. Only B2C electronic services are covered; B2B reverse-charge continues unchanged. Platforms whose annual B2C digital-service sales by foreign businesses through the platform exceed JPY 5 billion must notify the NTA by 30 September 2024 (for the initial cohort).
What changed in detail
The FY2024 tax reform act, 所得税法等の一部を改正する法律 (Act No. 8 of 2024), passed the Diet on 28 March 2024 and was promulgated on 30 March 2024. It adds Article 15-2 to the Consumption Tax Act and introduces platform taxation.
- Deemed supplier. A foreign business may provide B2C electronic services, such as app distribution, through a digital platform and receive the consideration through a specified platform business. The platform operator is then treated as having provided the services, and it files and pays the consumption tax.
- Designation. The NTA Commissioner designates specified platform businesses. The threshold is consideration for foreign businesses’ B2C electronic services through the platform of more than JPY 5 billion a year.
- Timing. Under supplementary provision Art. 13(6), the rule applies to services provided on or after 1 April 2025. Under Art. 13(7), platforms in the first cohort had to notify the NTA by 30 September 2024.
- Scope. Only B2C electronic services are covered. B2B electronic services stay under the reverse charge.
What it means
The regime has been running since 1 April 2025. A foreign app or content seller whose sales go through a designated platform no longer files consumption tax on those sales; the platform does. The seller still files on any sales it makes directly.
The model is being extended. Under the FY2026 reform, the same deemed-supplier approach will cover low-value imported goods from 1 April 2028, with “Type 2” platform operators designated on a JPY 5 billion threshold. Sellers on large marketplaces should expect the platform to collect the tax on goods as well as services.
Proof
such services shall be deemed as such specified platform business provides the services
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