JP Consumption tax / change in cross border e-commerce

Change in cross-border e-commerce

<before Sep 2015 >

The performance of e-commerce services by service providers outside of Japan … Not subject to consumption tax in Japan. (Japanese online service providers have claimed this divergence has made them less competitive than offshore providers that offer services in Japan….)

<after Oct 2015>

The performance of e-commerce services by service providers outside of Japan … Subject to consumption tax in Japan.

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The amendment to impose consumption tax on e-commerce services provided in Japan by service providers outside of Japan is scheduled to come into force starting October 1, 2015. It affects an array of cross-border e-commerce services, including sales of digital books and music downloads and advertising a product via telecommunications.