Advice for International Amazon Japan Sellers regarding the Consumption Tax update on October 1st 2019.

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Key points of Tax Changes for Amazon Sellers in Japan

Japan is changing the rules around consumption tax on 1st October 2019.

Amazon Japan have been sending out email reminders via seller-central about how it affects sellers on Amazon Japan and what action they need to take.

Here is the email in full (click to enlarge):

What is happening?

Consumption Tax (like VAT / Sales Tax) is increasing from 8% to 10% for most categories of products.

What do I need to do?

Probably nothing. Just be aware that when you send a batch of inventory to Japan next time you will pay 2% more in your tax charges.

What categories does the tax rise affect?

All categories of products except the following:

  • Food & (non-alcoholic) drinks – These are staying at 8% and is called reduced rate.
  • Some nursing care goods/ wheelchairs – These are going to be 0%

Here are the full rules in the help section of seller-central:

https://sellercentral.amazon.co.jp/gp/help/help.html?itemID=GJYN3ND6A829Z5AM

Click to enlarge the image:

Amazon mention about updating tax settings for my products – What do they mean?

You probably don’t need to do anything as products get the default code automatically. If you want to check a product’s tax code you’ll need to go into your inventory management and view the offer tab. A detailed explanation is here: https://sellercentral.amazon.co.jp/gp/help/G8E67JPEXAPQ4672/

Click to enlarge the image:

How am I currently paying tax as an international Amazon seller in Japan?

You pay at the point your inventory is imported into Japan. It’s usually handled by your shipping company.

Here is our general article on Tax requirements for overseas Amazon sellers in Japan

Amazon mention about updating my account tax settings – What do they mean?

Your account has an account level default tax code which is applied to all products if you don’t set them at individual product level. You probably don’t need to do anything as products are set at the default rate automatically. If you want to check your settings then here is where it is:

https://sellercentral.amazon.co.jp/tax/jpenrollment/home

Click to enlarge the image:

Conclusion 

As an international seller, you probably don’t need to do anything other than be aware of what’s happening. And plan your pricing strategy the next time you send inventory to Japan to take account of the increase.

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