Frequently Asked Questions
【Koshida Accounting Firm Column Date:】
Is overseas outsourcing subject to Japanese consumption tax?
Not necessarily. Whether overseas outsourcing is subject to Japanese consumption tax depends on how the transaction is classified under Japanese consumption tax rules.
If you run a business in Japan and outsource work to an overseas service provider, it is important to determine whether the transaction is treated as a domestic or overseas transaction for Japanese consumption tax purposes.
The Consumption Tax Risks When Outsourcing Work Overseas