Introduced: 1989
Standard Rate: 10%
Reduced Rate: 8% (food, newspapers)
Authority: National Tax Agency (NTA)

Japan’s consumption tax functions similarly to VAT but has unique registration and invoicing requirements.

Scope for Travel Businesses

• Accommodation, domestic tours, transport, and on-the-ground services are taxable at 10%.

• Foreign suppliers are generally not required to register unless they have a permanent establishment or supply B2B digital services.

• Inbound event expenses (venues, catering, AV, hotels): typically non-recoverable for foreign businesses.

Refund Position

Japan does not offer direct JCT refunds to foreign companies. Refunds are only possible by:

• Using a Japan-based registered intermediary, or

• Structuring contracts so the Japanese entity purchases on behalf of the foreign client.

Qualified Invoice System (2023)

To claim input tax:

• Supplier must have a JCT registration number

• Invoices must list each item with the applicable rate

• Hotels and DMCs must update invoice templates

Antravia helps: firms determine whether JCT applies to their contracting model and assess documentation for any reclaim opportunity.

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Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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