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
In case the calculation figure is minus, overpaid consumption would be
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.
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