Japan VAT registration threshold

What this value means

PERIOD BASIS: Base-period test: exempt from consumption tax obligation if taxable sales in the BASE PERIOD (kijun kikan — the second fiscal year preceding the current taxable period; for individuals, the calendar year two years prior) were 10 million yen or less. Second limb: even if under on the base period, taxable if taxable sales in the SPECIFIED PERIOD (first six months of the preceding fiscal year) exceeded 10 million yen — for domestic businesses this can alternatively be judged on total salaries paid; that salary option is no longer available to foreign businesses for taxable periods starting on or after 1 October 2024. This is an exemption threshold, not a registration threshold: crossing it makes you a taxable person obliged to file. SECOND LIMB: Specified-period limb (Consumption Tax Act art. 9-2, introduced by the 2011 reform, applying from taxable periods beginning on or after 1 January 2013): taxable sales (or, for domestic businesses, salaries paid) in the first six months of the preceding year exceeding 10 million yen removes the exemption. NON-ESTABLISHED SUPPLIERS: The same 10-million-yen base-period exemption applies to foreign businesses — no nil threshold. NTA brochure for foreign businesses (July 2024, read this session): "In principle, a business with taxable sales not exceeding 10 million yen in the base period for the taxable period is exempt from consumption tax obligation", counting for a digital-only foreign seller "the sales amount associated with B2C electronic services provided within Japan" (B2B electronic services are excluded — they fall under the reverse charge). Foreign businesses without domicile/office in Japan must appoint a Tax Agent. IMPORTED DIGITAL SERVICES: No separate threshold, but a distinct regime: foreign providers of B2C electronic services to consumers in Japan are themselves liable to file and pay (B2B electronic services go to reverse charge instead), subject to the same 10M yen base-period exemption counting only their Japan B2C electronic-service sales. PLATFORM TAXATION from 1 April 2025 (FY2024 reform): B2C electronic services supplied via a 'specified platform business' designated by the NTA Commissioner are deemed supplied by the platform, which files and pays instead of the foreign seller. Registering as a qualified-invoice issuer makes a business taxable 'irrespective of the taxable sales amount of its reference period' (NTA brochure) — voluntary invoice registration silently waives the 10M exemption. Engine traps: (1) the test looks TWO YEARS BACK, not at current turnover — a new business is typically exempt for its first two years regardless of size, unless (2) the specified-period limb, (3) capital ≥ 10M yen for a newly established corporation (art. 12-2), or (4) qualified-invoice registration (from 1 Oct 2023) removes the exemption. (5) From taxable periods starting 1 Oct 2024 foreign businesses cannot use the salaries alternative for the specified-period test. (6) 10M yen is measured on taxable sales in JAPAN (for foreign digital sellers, B2C only; B2B electronic services excluded). (7) The figure was 30M yen before the FY2003 reform (effective 1 Apr 2004). (8) This is an exemption system, not registration: there is no 'registration threshold' as such except the invoice-issuer register. Confidence marked secondary ONLY as to the statutory article numbers/amendment vehicle (e-Gov text not reached); the operative values are from the tax authority's own publications reached this session. Researched against the primary instrument and then attacked by an independent adversarial verification pass before being served (2026-08-08). Where that pass refuted a citation, the correction it proved has been applied; no headline threshold was refuted.

Get it programmatically

curl https://asiaref.dev/v1/jp/vat-registration-threshold
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History:    curl https://asiaref.dev/v1/jp/vat-registration-threshold/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/jp/vat-registration-threshold

Other Japan series: policy interest rate · Consumption tax (standard rate) · Minimum wage (lowest prefectural regional minimum wage) · Public holidays · Consumer price inflation (CPI, all items, year-on-year) · Corporate income tax (national corporation tax, standard rate) · Personal income tax (national, progressive bands)