Since all services provided by Amazon Japan GK are considered transactions conducted in Japan, they are subject to Japanese consumption tax. Due to changes in related parties, Amazon Japan GK will collect consumption tax on transactions related to the Selling on Amazon service and Fulfillment by Amazon starting May 1, 2016. In addition, since promotional services (sponsored products) are also subject to Japanese consumption tax, Amazon Japan GK will collect consumption tax on transactions related to them starting May 1, 2016.
However, sellers residing outside of Japan are not required to pay consumption tax on transactions related to the Selling on Amazon service and promotion services (Sponsored Products).
Taxable business operators who pay consumption tax for services provided by Amazon Japan GK will be eligible for the retail sales tax credit. Please contact the competent tax authority to determine whether you are a seller who is identified as a taxable business operator.
How can I determine if the seller is a resident of Japan?
Amazon will determine whether each seller is a resident of Japan based on the business address displayed in the seller account information in the Settings menu and the address information registered in Seller Central.
Where can sellers confirm the amount of GST they should pay?
The amount including GST will be shown on various payment reports and transaction statements. Sellers can confirm the amount of sales tax collected by Amazon in the commission statement issued monthly. To access the report, select Tax Document Library (located under the Reports tab) to display the report for any time period you have requested.
What happens to existing payment reports?
There will be no changes to the format of existing reports. Starting October 2015, referral fees amounts will be displayed inclusive of VAT in existing reports.
If I already use Amazon Marketplace Web Service (MWS), do I need to make any changes to my system?
Since the API will remain the same, the format of the response data will also remain the same. If the referral fee is taxable, the referral fee amount will be displayed inclusive of VAT.
Are sales commissions for products shipped overseas taxable?
Amazon charges sellers residing in Japan a sales commission.
Where can I confirm details of the process for applying for the Retail Sales Tax Credit?
Please refer to the Japan National Tax Agency website for information on retail tax credits.
I have been using Amazon Global Selling. Are my sales transactions subject to GST? If so, is the consumption tax charged in Japanese Yen?
Sellers residing in Japan will need to pay consumption tax. Amazon will collect sales tax in the currency in which the referral fee is charged, based on the country of the website where the seller lists the product.
