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Consumption tax refund in Japan

Japanese consumption tax refund by a business entity solely purchasing goods for export to home country.

Under the Japanese Consumption Tax Law, both a domestic corporation and a foreign corporation are "Business Entrepreneur" and they can register as "a tax payer" of the consumption tax.

Consumption tax payable is calculated "Output consumption tax - Input consumption tax".
In case the calculation figure is minus, overpaid consumption would be refunded.

If your business is purchasing goods in Japan for export to home country, especially in second handed cars and/or watches which is expensive, it would be very much interested from cash flow point of view to apply for Japanese consumption tax refund.

1. Consumption tax refund procedure

Necessary requirements by the Japanese consumption tax law should be satisfied.
e.g. Accounting book for the Japanese consumption tax purposes and record of invoices etc. should be fulfilled.

Example:Second handed car exports to home country
- purchase 10cars /month @500K and sell @750K in home country. Extra cost (Freight etc) is @100K.

Including Consumption tax
 (750K×10 cars)-(500K+consumption tax 25K+100K)×10 cars=1.25M (Profitability16.6%)

Consumption tax is exempt
 (750K×10 cars)-(500K+consumption tax Nil+100K)×10 cars=1.5M (Profitability20%)

2. "Tax filing cost" vs "tax refund amount"

If you are interested in this issue, why not consult us.

Inquiry form

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*Name of your Company
*A name of the person in charge
*E-mail address
*Phone number
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Your inquiry(You can choose a plural number)
We would like to have a consultation
We would like to have a simulation for refund
If you have any other questions, feel free to ask us.

(NOTICE) With consultation for a consumption tax refund, we will charge fee by a time charge basis (JPY 37,800 per hour). We can provide a a simulation for refund as well (JPY 105,000: Documents are Japanese, JPY 315,000:Documents are English).
Do you perform consultation about the consumption tax issues?