Taxation on cross-border electronic commerce

① Revision of the taxation on transfers of imported cargoes of a small amount

From among the asset transfers where each business sends the goods from a location outside Japan to a location in Japan by using the mail order method, those transfers of ¥10,000 or less (excluding tax) in the consideration amount per one asset item (hereinafter “transfers of specified low-value assets”) became taxable for consumption tax, as they are now regarded as asset transfers implemented in Japan, per the revision

② Registration system for registered sellers of specified low-value goods

If a business implements transfers of specified low-value assets or tries to perform so; or if a business uses other entity to receive the taxable goods in relation to the transfers of specified low-value assets from the bonded area, the operator can get registered with the District Director of the competent tax office. After the registration, such business is called a registered seller of specified low-value goods.
　From among the cargoes received from the bonded area, if certain taxable goods are proven to have come from the transfers of specified low-value assets carried out by a registered seller of specified low-value goods, consumption tax will be exempted when the goods are received by the importer from the bonded area.

③ About platform taxation

Among the businesses that provide a digital platform such as an online marketplace, certain platform businesses that satisfy specific requirements and are designated by the Commissioner of the NTA are called the designated category 2 platform businesses.
　From among certain asset transfers carried out via the digital platform provided by a designated category 2 platform business, in the cases where the consideration amounts are received via the designated category 2 platform business, it is deemed that the designated category 2 platform business did those asset transfers, so it is now set that the operator will need to perform consumption tax declaration and payment (platform taxation).

Overview of the system