Tax Accountant Tokyo - Outsourcing, Japan INBOUND - Yamajo International Tax and Accounting office.

【Working hours】9:00 ~ 18:00 (Japan time, GMT+8)

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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.

Note: For the time being, we do not provide a consumption tax refund job for car export from Japan. No reply will be made such an inquiry.

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 @650K in home country. Extra cost (Freight etc) is @100K.

Including Consumption tax
(650K×10 cars)-(500K+consumption tax 40K)×10 cars - 100K=1M (Profitability15.38%)
Consumption tax is exempt
(650K×10 cars)-(500K+consumption tax Nil)×10 cars- 100K=1.4M (Profitability21.53%)

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

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