There were legislative changes that have impacted consumption tax for sales of digital products in Japan recently. Effective October 1, 2015, an amendment to Japan’s Consumption Tax Act took effect for all non-resident, or off-shore sellers of digital products and services to consumers in Japan. As your merchant- and seller-of-record, FastSpring has implemented changes to comply with this legislation. We began charging, collecting and remitting the new 8 percent consumption tax in Japan for off-shore sales of digital products to Japanese consumers. This new tax rate will merely be assessed and added on to the total product amount.
The complexity, cost and risk of tax compliance for direct-to-consumer sales continues to change globally. As your eCommerce provider, we assume the obligations to comply with these taxation requirements and appropriately address the mandated changes on your behalf, reducing the burden to your company.