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openaccountants/skills/japan-consumption-tax.md
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v20
1---
2name: japan-consumption-tax
3description: Use this skill whenever asked to prepare, review, or classify transactions for a Japan Consumption Tax (JCT) return (消費税及び地方消費税の確定申告書), handle Qualified Invoice System (QIS / 適格請求書等保存方式) compliance, or advise on JCT registration, filing, and reporting. Trigger on phrases like "prepare consumption tax return", "JCT return", "消費税", "shouhizei", "qualified invoice", "tekikaku invoice", "e-Tax filing", or any Japan consumption tax request. ALWAYS read this skill before touching any JCT-related work.
4version: 2.0
5jurisdiction: JP
6tax_year: 2025
7category: international
8depends_on:
9 - vat-workflow-base
10---
11 
12# Japan Consumption Tax (JCT / 消費税) Skill v2.0
13 
14---
15 
16## Section 1 — Quick reference
17 
18| Field | Value |
19|---|---|
20| Country | Japan (日本国) |
21| Tax | Consumption Tax (消費税 / JCT) + Local Consumption Tax (地方消費税) |
22| Currency | JPY only |
23| Tax year | Fiscal year (varies by entity; calendar year for most individuals) |
24| Standard rate | 10% (national 7.8% + local 2.2%) |
25| Reduced rate | 8% (food and non-alcoholic beverages 食料品; subscription newspapers 新聞) |
26| Zero rate | 0% (exports 輸出; international transport) |
27| Exempt | Financial services, insurance, medical, education, residential rent, postage stamps, certain land transactions |
28| Registration threshold | JPY 10,000,000 in base period (基準期間) taxable sales |
29| Small business simplified | 簡易課税制度 — taxable sales ≤ JPY 50M; fixed credit ratio by industry |
30| Tax authority | National Tax Agency (NTA / 国税庁) |
31| Filing portal | e-Tax (https://www.e-tax.nta.go.jp) |
32| Return form | 消費税及び地方消費税の確定申告書 |
33| Annual filing deadline | 2 months after fiscal year end (e.g., 31 March for calendar-year filers) |
34| Quarterly/monthly deadlines | End of month following reporting period |
35| QIS registration | 適格請求書発行事業者登録番号 — T + 13 digits; mandatory from 1 October 2023 |
36| Contributor | Open Accountants Community |
37| Validated by | Pending — requires sign-off by a Japan-licensed zeirishi (税理士) |
38| Skill version | 2.0 |
39 
40### Key return form lines
41 
42| Line | Meaning |
43|---|---|
44| ① | Taxable sales (課税売上高) at 10% — net of tax |
45| ② | Taxable sales at 8% reduced rate — net of tax |
46| ③ | Zero-rated exports (輸出売上高) |
47| ④ | Exempt sales (非課税売上高) |
48| ⑤ | Total output tax (課税標準額に対する消費税額) |
49| ⑥ | Input tax credit (仕入税額控除) |
50| ⑦ | Net consumption tax payable (納付税額) = ⑤ − ⑥ |
51| ⑧ | Local consumption tax (地方消費税) = ⑦ × 22/78 |
52| ⑨ | Total payable (⑦ + ⑧) |
53 
54### Conservative defaults
55 
56| Ambiguity | Default |
57|---|---|
58| Unknown rate on a sale | 10% standard |
59| Unknown whether food/beverage qualifies for 8% | 10% until confirmed |
60| Unknown counterparty registration status | Assume unregistered — no input credit |
61| Unknown business-use % (vehicle, phone, home) | 0% credit |
62| Unknown import classification | Taxable at 10% |
63| Unknown whether QIS invoice available | No input credit until confirmed |
64| Unknown B2B vs B2C for digital services | B2C — supplier must self-assess |
65 
66### Red flag thresholds
67 
68| Threshold | Value |
69|---|---|
70| HIGH single transaction | JPY 300,000 |
71| HIGH tax delta on single conservative default | JPY 30,000 |
72| MEDIUM counterparty concentration | >40% of output or input |
73| MEDIUM conservative default count | >4 per return |
74| LOW absolute net JCT position | JPY 500,000 |
75 
76---
77 
78## Section 2 — Required inputs and refusal catalogue
79 
80### Required inputs
81 
82**Minimum viable** — bank statement for the full fiscal year in CSV, PDF, or pasted text, plus confirmation of registration status (taxable operator 課税事業者 or exempt 免税事業者) and fiscal year dates.
83 
84**Recommended** — QIS registration number (T + 13 digits), sales invoices (適格請求書) for any line above JPY 100,000, purchase invoices confirming supplier QIS numbers.
85 
86**Ideal** — complete transaction register (帳簿), prior year return, asset register, quarterly prepayment records (中間申告), industry code for 簡易課税.
87 
88**Refusal if minimum is missing — SOFT WARN.** No bank statement = hard stop. Bank statement without invoices = proceed but flag: "Input tax credit claims require qualified invoices (適格請求書) from QIS-registered suppliers. All credits are provisional pending invoice verification."
89 
90### Refusal catalogue
91 
92**R-JP-1 — Exempt business operator (免税事業者).** "This client's base-period taxable sales are below JPY 10M. They are exempt from filing a consumption tax return and cannot recover input tax. If they have voluntarily registered (課税事業者選択届出書), provide registration document before proceeding."
93 
94**R-JP-2 — Corporations with complex group structures.** "Consolidated consumption tax filing and intercompany transactions in a corporate group require specialist handling. Out of scope."
95 
96**R-JP-3 — 95% rule with proportional allocation required.** "Client makes both taxable and exempt supplies and taxable sales exceed JPY 500M, triggering individual or lump-sum proportional methods. Out of scope — escalate to zeirishi."
97 
98**R-JP-4 — Non-resident digital service providers.** "Non-resident businesses providing digital services to Japanese consumers (国境を越えた役務の提供) have separate registration and filing obligations. Out of scope."
99 
100**R-JP-5 — Real estate or construction companies.** "Industry-specific JCT rules for real estate and construction (e.g., long-term contracts, land/building allocation) require specialist input. Out of scope."
101 
102---
103 
104## Section 3 — Supplier pattern library
105 
106Match by case-insensitive substring on the counterparty name or reference in the bank statement. Most specific match wins. If no match, fall through to Section 5.
107 
108### 3.1 Japanese banks — fees and charges (exempt / exclude)
109 
110| Pattern | Treatment | Notes |
111|---|---|---|
112| みずほ銀行, MIZUHO BANK | EXCLUDE (bank fee lines) | Financial service — exempt from JCT |
113| 三菱UFJ銀行, MUFG BANK | EXCLUDE (bank fee lines) | Same |
114| 三井住友銀行, SMBC, SUMITOMO MITSUI | EXCLUDE (bank fee lines) | Same |
115| りそな銀行, RESONA BANK | EXCLUDE (bank fee lines) | Same |
116| ゆうちょ銀行, JAPAN POST BANK, 郵便貯金 | EXCLUDE (bank fee lines) | Same |
117| 楽天銀行, RAKUTEN BANK | EXCLUDE (bank fee lines) | Same |
118| SBI新生銀行, SBI SHINSEI | EXCLUDE (bank fee lines) | Same |
119| PayPay銀行, PAYPAY BANK | EXCLUDE (bank fee lines) | Same |
120| 振込手数料, 口座維持手数料, ATM手数料 | EXCLUDE | Bank transaction/maintenance fees — exempt |
121| 利息, 利子, INTEREST | EXCLUDE | Interest income/expense — exempt from JCT |
122 
123### 3.2 Japanese government and statutory payments (exclude)
124 
125| Pattern | Treatment | Notes |
126|---|---|---|
127| 国税庁, 税務署, NTA | EXCLUDE | Tax payment — not a supply |
128| 消費税, 所得税, 法人税 | EXCLUDE | Tax remittance — not a supply |
129| 社会保険料, 年金, 健康保険 | EXCLUDE | Social insurance — out of JCT scope |
130| 日本年金機構, JAPAN PENSION SERVICE | EXCLUDE | Pension — out of scope |
131| 労働保険, 雇用保険 | EXCLUDE | Employment insurance — out of scope |
132| 都道府県税, 市区町村税, 住民税 | EXCLUDE | Local income tax — not a JCT supply |
133| 印紙税 | EXCLUDE | Stamp duty — exempt |
134 
135### 3.3 Japanese utilities (taxable at 10%)
136 
137| Pattern | Treatment | Rate | Notes |
138|---|---|---|---|
139| 東京電力, TEPCO, 東京電力エナジーパートナー | Input 10% | 10% | Electricity — taxable |
140| 関西電力, KEPCO, 関西電力送配電 | Input 10% | 10% | Electricity — taxable |
141| 中部電力, CHUDEN, CHUBU ELECTRIC | Input 10% | 10% | Electricity — taxable |
142| 東京ガス, TOKYO GAS | Input 10% | 10% | Gas — taxable |
143| 大阪ガス, OSAKA GAS | Input 10% | 10% | Gas — taxable |
144| NTT東日本, NTT西日本, NTT EAST, NTT WEST | Input 10% | 10% | Fixed-line telephone — taxable |
145| NTTドコモ, DOCOMO | Input 10% | 10% | Mobile — taxable |
146| ソフトバンク, SOFTBANK | Input 10% | 10% | Mobile/internet — taxable |
147| au, KDDI | Input 10% | 10% | Mobile — taxable |
148| 楽天モバイル, RAKUTEN MOBILE | Input 10% | 10% | Mobile — taxable |
149 
150### 3.4 Japanese transport (various rates)
151 
152| Pattern | Treatment | Rate | Notes |
153|---|---|---|---|
154| JR東日本, JR西日本, JR EAST, JR WEST | Input 10% | 10% | Domestic rail — taxable |
155| 東急電鉄, TOKYU | Input 10% | 10% | Private rail — taxable |
156| 東京メトロ, TOKYO METRO | Input 10% | 10% | Subway — taxable |
157| 都営地下鉄, TOEI SUBWAY | Input 10% | 10% | Subway — taxable |
158| 日本航空, JAL, JAPAN AIRLINES | Check route | 0%/10% | Domestic 10%; international 0% |
159| 全日空, ANA, ALL NIPPON AIRWAYS | Check route | 0%/10% | Domestic 10%; international 0% |
160| ヤマト運輸, YAMATO TRANSPORT, クロネコヤマト | Input 10% | 10% | Domestic courier — taxable |
161| 佐川急便, SAGAWA EXPRESS | Input 10% | 10% | Domestic courier — taxable |
162| 日本郵便, JAPANPOST (parcel) | Input 10% | 10% | Parcel services — taxable |
163| 日本郵便, JAPANPOST (stamps) | EXCLUDE | Exempt | Postage stamps — exempt |
164 
165### 3.5 Food and retail (8% reduced rate for food items)
166 
167| Pattern | Treatment | Rate | Notes |
168|---|---|---|---|
169| セブン-イレブン, 7-ELEVEN JAPAN | Split 8%/10% | Mixed | Food 8%; non-food 10%; eat-in 10% |
170| ローソン, LAWSON | Split 8%/10% | Mixed | Same |
171| ファミリーマート, FAMILY MART | Split 8%/10% | Mixed | Same |
172| イオン, AEON | Split 8%/10% | Mixed | Supermarket — classify by item |
173| イトーヨーカ堂, ITO-YOKADO | Split 8%/10% | Mixed | Same |
174| ライフ, LIFE SUPERMARKET | Input 8% (food) | 8% | Grocery — default food rate |
175| 業務スーパー, GYOMU SUPER | Input 8% (food) | 8% | Wholesale food — taxable at 8% |
176| 飲食店, レストラン, 食堂 (eat-in) | Input 10% | 10% | Eat-in meals — standard rate |
177| UberEats, ウーバーイーツ | Input 8% | 8% | Takeout food delivery — reduced rate |
178| 出前館, DEMAE-CAN | Input 8% | 8% | Takeout delivery — reduced rate |
179 
180### 3.6 SaaS — Japanese suppliers (taxable at 10%)
181 
182| Pattern | Treatment | Rate | Notes |
183|---|---|---|---|
184| freee, フリー | Input 10% | 10% | Japanese accounting SaaS — taxable |
185| マネーフォワード, MONEY FORWARD | Input 10% | 10% | Japanese finance SaaS — taxable |
186| 弥生, YAYOI | Input 10% | 10% | Japanese accounting software — taxable |
187| 勘定奉行, OBC | Input 10% | 10% | Japanese ERP — taxable |
188| サイボウズ, CYBOZU | Input 10% | 10% | Japanese groupware — taxable |
189| ChatWork, チャットワーク | Input 10% | 10% | Japanese messaging SaaS — taxable |
190 
191### 3.7 SaaS — international suppliers (reverse charge for B2B)
192 
193For B2B digital services from foreign suppliers (国外事業者から受ける電気通信利用役務の提供), the Japanese business must self-assess JCT under the reverse charge mechanism (リバースチャージ方式). Applies only to taxable businesses where taxable sales > 95% of total sales.
194 
195| Pattern | Billing entity | Treatment | Notes |
196|---|---|---|---|
197| GOOGLE (Workspace, Ads, Cloud) | Google LLC (US) | Reverse charge 10% | Self-assess; note on return |
198| MICROSOFT (365, Azure) | Microsoft Corp (US) | Reverse charge 10% | Same |
199| ADOBE | Adobe Inc (US) | Reverse charge 10% | Same |
200| META, FACEBOOK ADS | Meta Platforms Inc (US) | Reverse charge 10% | Same |
201| SLACK | Slack Technologies (US) | Reverse charge 10% | Same |
202| ZOOM | Zoom Video Communications (US) | Reverse charge 10% | Same |
203| GITHUB | GitHub Inc (US) | Reverse charge 10% | Same |
204| NOTION | Notion Labs Inc (US) | Reverse charge 10% | Same |
205| ANTHROPIC, CLAUDE | Anthropic PBC (US) | Reverse charge 10% | Same |
206| OPENAI, CHATGPT | OpenAI Inc (US) | Reverse charge 10% | Same |
207| FIGMA | Figma Inc (US) | Reverse charge 10% | Same |
208| CANVA | Canva Pty Ltd (AU) | Reverse charge 10% | Same |
209| AWS (AMAZON WEB SERVICES) | AWS Inc (US) | Reverse charge 10% | Check if billed via Japanese entity |
210 
211### 3.8 Payment processors and fintech
212 
213| Pattern | Treatment | Notes |
214|---|---|---|
215| STRIPE (transaction fees) | EXCLUDE (exempt) | Payment processing — exempt financial service |
216| PayPay手数料, PAYPAY FEE | EXCLUDE (exempt) | Payment processing — exempt |
217| Square手数料, SQUARE FEE | EXCLUDE (exempt) | Same |
218| LINE Pay手数料, LINE PAY FEE | EXCLUDE (exempt) | Same |
219 
220### 3.9 Internal transfers and exclusions
221 
222| Pattern | Treatment | Notes |
223|---|---|---|
224| 振替, 内部振替, INTERNAL TRANSFER | EXCLUDE | Internal movement between own accounts |
225| 借入金, LOAN PROCEEDS | EXCLUDE | Loan principal — out of JCT scope |
226| 元金返済, LOAN REPAYMENT | EXCLUDE | Loan repayment — out of scope |
227| 役員報酬, 給与, 賃金 | EXCLUDE | Salaries/wages — outside JCT scope |
228| 配当金, DIVIDEND | EXCLUDE | Dividend — exempt |
229| ATM出金, 現金引出 | Tier 2 — ask | Default exclude; ask what cash was spent on |
230 
231---
232 
233## Section 4 — Worked examples
234 
235Six classifications drawn from a hypothetical bank statement of a Tokyo-based freelance IT consultant. Format: みずほ銀行 CSV export.
236 
237### Example 1 — Client payment (domestic, taxable at 10%)
238 
239**Input line:**
240`2025年04月15日,振込入金,株式会社サクラテック,請求書番号:ST-2025-041,+1,100,000,1,100,000`
241 
242**Reasoning:**
243Incoming JPY 1,100,000 from a Japanese company. This is revenue for IT consulting services. Standard rate 10% applies. If the invoice is JPY 1,100,000 gross, net = JPY 1,000,000 (課税売上高) + JPY 100,000 (JCT). Report net on line ①. Confirm QIS invoice was issued showing registration number T + 13 digits.
244 
245**Classification:** 課税売上高 (taxable sales) Line ①, JPY 1,000,000 net. Output JCT: JPY 100,000.
246 
247### Example 2 — Food delivery platform payout (reduced rate 8%)
248 
249**Input line:**
250`2025年04月18日,振込入金,ウーバーイーツジャパン合同会社,売上精算 2025-04,+216,000,1,316,000`
251 
252**Reasoning:**
253Payout from Uber Eats Japan (takeout food delivery). Takeout food is reduced rate 8%. JPY 216,000 gross includes 8% JCT. Net = JPY 200,000 (課税売上高 reduced) + JPY 16,000 (JCT). Report on line ② (reduced rate sales). Confirm platform invoices show the 8% rate and the client's QIS registration.
254 
255**Classification:** 課税売上高 reduced rate line ②, JPY 200,000 net. Output JCT at 8%: JPY 16,000.
256 
257### Example 3 — International reverse charge (Google Ads)
258 
259**Input line:**
260`2025年04月10日,引落,GOOGLE LLC,Google Ads April 2025,-110,000,1,206,000`
261 
262**Reasoning:**
263Google LLC is a US entity providing B2B digital advertising services to a Japanese business. This triggers the reverse charge mechanism (リバースチャージ方式). The JPY 110,000 payment is treated as net (Google does not charge Japanese JCT on the invoice). Self-assess: output JCT = JPY 110,000 × 10/110 × 10% ... actually: JPY 110,000 is net; self-assessed JCT = JPY 110,000 × 10% = JPY 11,000. Simultaneously claim same as input credit if taxable sales > 95% threshold.
264 
265**Classification:** Reverse charge — note on return. Net base: JPY 110,000. Self-assessed JCT: JPY 11,000 (output and input if fully taxable).
266 
267### Example 4 — Domestic software subscription (10%, requires QIS invoice)
268 
269**Input line:**
270`2025年04月01日,引落,フリー株式会社,freee会計 プロプラン 2025年4月,-11,000,1,195,000`
271 
272**Reasoning:**
273freee is a Japanese SaaS company (QIS registered). Monthly subscription JPY 11,000 gross. Net = JPY 10,000 + JPY 1,000 JCT at 10%. Input credit claimable if supplier's QIS registration number (T + 13 digits) appears on the invoice/receipt. freee is a major registered supplier — credit is expected to be available. Confirm invoice.
274 
275**Classification:** Input JCT Line ⑥, JPY 1,000. Net purchase JPY 10,000.
276 
277### Example 5 — Exempt rent (residential — no input credit)
278 
279**Input line:**
280`2025年04月01日,引落,田中不動産株式会社,4月分賃料,-110,000,1,085,000`
281 
282**Reasoning:**
283Monthly rent payment. Need to determine: is this office rent (課税) or residential rent (非課税)? The reference "賃料" (rent) is ambiguous. Default: residential = exempt, no input credit. If this is confirmed commercial/office rent and the landlord is JCT-registered and issued a qualified invoice, input credit is available. Flag for confirmation.
284 
285**Classification:** Tier 2 — ask. Default: EXCLUDE (residential/exempt assumption). If commercial: Input 10%, JPY 10,000 credit available.
286 
287### Example 6 — Export sale (zero rate)
288 
289**Input line:**
290`2025年04月22日,外貨入金,Acme Corp USA,Invoice JP-2025-018 IT Consulting,-,+1,250,000,2,335,000`
291 
292**Reasoning:**
293Incoming JPY 1,250,000 from a US company for IT consulting exported overseas. Export services (輸出免税) are zero-rated (0% JCT) if the service is provided to a non-resident for use outside Japan. Report on line ③. The client must retain export evidence (contracts, wire transfer records showing foreign payor). No output JCT. No box entry for input side of this transaction.
294 
295**Classification:** 輸出等の売上高 (zero-rated exports) Line ③, JPY 1,250,000. Output JCT: JPY 0.
296 
297---
298 
299## Section 5 — Tier 1 rules (compressed)
300 
301Apply these rules when a transaction is unambiguous. No flags required. For complex or data-dependent situations, see Tier 2 catalogue in Section 6.
302 
303### 5.1 Standard rate 10%
304 
305All taxable supplies of goods and services in Japan not falling into reduced rate, zero rate, or exemption. Output: Line ①. Input credit: Line ⑥. Legislation: Consumption Tax Act (消費税法) Article 29.
306 
307### 5.2 Reduced rate 8% (軽減税率)
308 
309Applies to: (1) food and non-alcoholic beverages 食料品 for home consumption (takeout, grocery) — NOT eat-in meals; (2) subscription newspapers (週2回以上発行の定期購読新聞). Output: Line ②. Legislation: 消費税法 Article 29, 軽減税率 Schedule.
310 
311**Eat-in test:** If food is consumed on the premises (外食), standard 10% applies. If taken away or delivered, 8% applies. When bank statement only — default to 8% for grocery/delivery, flag restaurants as 10%.
312 
313### 5.3 Zero rate 0% — exports (輸出免税)
314 
315Exports of goods and services provided to non-residents for use outside Japan are zero-rated. Evidence required: export declarations (輸出許可通知書) for goods; contracts and payment records for services. Legislation: 消費税法 Article 7.
316 
317### 5.4 Exempt supplies (非課税取引)
318 
319No JCT charged; no input credit on related purchases. Includes: financial services (利子、保険料), medical services (社会保険診療), education (学校教育), residential rent (住宅の貸付), postage stamps, certain land transactions. Legislation: 消費税法 Article 6, Exempt Schedule (別表第一).
320 
321### 5.5 Outside scope (不課税 / 課税対象外)
322 
323No JCT. Includes: wages and salaries (給与), dividend payments (配当), gifts, donations, loan principal. These are not supplies for JCT purposes. Legislation: 消費税法 Article 2(1)(viii).
324 
325### 5.6 QIS invoice requirement (適格請求書等保存方式)
326 
327From 1 October 2023, input tax credit requires a qualified invoice (適格請求書) from a QIS-registered supplier. Required fields: supplier name, QIS registration number (T + 13 digits), transaction date, description, taxable amount (10% and 8% separately), JCT amount, recipient name. Without a compliant invoice, NO input credit is allowed.
328 
329### 5.7 Transitional credit for non-QIS suppliers (経過措置)
330 
331Purchases from unregistered suppliers: 80% of otherwise allowable credit available through 30 September 2026; 50% through 30 September 2029; 0% thereafter. Always flag when supplier QIS status is unconfirmed.
332 
333### 5.8 Filing deadlines
334 
335| Filer type | Deadline |
336|---|---|
337| Individual (calendar year) | 31 March of following year |
338| Corporation (annual) | 2 months after fiscal year end |
339| Quarterly filers | End of month following quarter |
340| Monthly filers | End of following month |
341| Interim payment (中間申告) | End of month following applicable period |
342 
343### 5.9 Simplified tax method (簡易課税制度)
344 
345Available to taxable businesses with prior-year taxable sales ≤ JPY 50M. Input credit is calculated as a fixed percentage of output tax based on industry category (みなし仕入率):
346 
347| Category | Industry | Credit ratio |
348|---|---|---|
349| 第一種 | Wholesale | 90% |
350| 第二種 | Retail, agriculture | 80% |
351| 第三種 | Manufacturing, construction | 70% |
352| 第四種 | Restaurant, other | 60% |
353| 第五種 | Services (IT consulting, finance, insurance) | 50% |
354| 第六種 | Real estate | 40% |
355 
356Actual input invoices are irrelevant under 簡易課税 — the fixed ratio applies automatically.
357 
358### 5.10 Penalties
359 
360| Offence | Penalty |
361|---|---|
362| Late filing (無申告加算税) | 15% of unpaid tax (20% if undeclared income detected) |
363| Late payment (延滞税) | 2.4%–8.7% per annum (rate varies by year) |
364| Understatement (過少申告加算税) | 10% (15% if detected after investigation) |
365| Fraud (重加算税) | 35%–40% |
366 
367---
368 
369## Section 6 — Tier 2 catalogue (reviewer judgement required)
370 
371Tier 2 items are those where the correct classification cannot be determined from the bank statement line alone because critical factual data is missing. The rule is clear — the data is not.
372 
373### 6.1 Eat-in vs. takeout (restaurant/café charges)
374 
375**What it shows:** Debit to a restaurant or café.
376**What's missing:** Whether the meal was consumed on premises (eat-in = 10%) or taken away (takeout = 8%).
377**Conservative default:** 10% (eat-in).
378**Question to ask:** "Was this meal consumed at the restaurant, or was it a takeout/delivery order?"
379 
380### 6.2 Commercial vs. residential rent
381 
382**What it shows:** Regular debit to a property company or individual labelled "賃料" or "家賃".
383**What's missing:** Whether the premises are office/commercial (課税) or residential (非課税/exempt).
384**Conservative default:** Exempt — no input credit.
385**Question to ask:** "Is this payment for office/commercial space or for residential accommodation? Does the landlord issue a JCT-registered invoice?"
386 
387### 6.3 Vehicle expenses (business vs. personal use)
388 
389**What it shows:** Debit to petrol station, parking, car dealer, or car leasing company.
390**What's missing:** Business-use percentage; whether a mileage log (運行記録) is maintained.
391**Conservative default:** 0% input credit.
392**Question to ask:** "What percentage of this vehicle's use is for business? Is a mileage log maintained?"
393 
394### 6.4 Cash withdrawals (ATM出金)
395 
396**What it shows:** ATM cash withdrawal.
397**What's missing:** What the cash was spent on.
398**Conservative default:** Exclude (no credit, no income).
399**Question to ask:** "What was this cash withdrawal used for? Do you have receipts?"
400 
401### 6.5 Mixed purchases (convenience store — food and non-food)
402 
403**What it shows:** Single debit to convenience store (7-Eleven, Lawson, Family Mart).
404**What's missing:** Proportion of food items (8%) vs. non-food (10%).
405**Conservative default:** 10% (single rate) unless itemised receipt available.
406**Question to ask:** "Do you have an itemised receipt showing which items were food vs. non-food?"
407 
408### 6.6 Supplier QIS registration status unconfirmed
409 
410**What it shows:** Purchase from a domestic supplier with no QIS number on record.
411**What's missing:** Whether the supplier is QIS-registered.
412**Conservative default:** Apply 80% transitional credit (through 30 Sep 2026) — flag as requiring confirmation.
413**Question to ask:** "Can you provide the supplier's QIS registration number (T + 13 digits) from their invoice?"
414 
415---
416 
417## Section 7 — Excel working paper template
418 
419```
420JAPAN CONSUMPTION TAX WORKING PAPER — 消費税計算書
421Fiscal Year: 2025 / Entity: _______________
422 
423A. TAXABLE SALES (課税売上)
424 A1. Standard rate 10% sales (net) ___________
425 A2. Reduced rate 8% sales (net) ___________
426 A3. Zero-rated exports (輸出) ___________
427 A4. Exempt sales (非課税売上) ___________
428 A5. Total sales (A1+A2+A3+A4) ___________
429 A6. Taxable ratio (A1+A2+A3) / A5 ___________%
430 
431B. OUTPUT TAX (課税標準額に対する消費税額)
432 B1. Output JCT at 10% (A1 × 10/110) ___________
433 B2. Output JCT at 8% (A2 × 8/108) ___________
434 B3. Reverse charge output JCT ___________
435 B4. Total output JCT (B1+B2+B3) ___________
436 
437C. INPUT TAX CREDIT (仕入税額控除)
438 C1. Domestic purchases — 10% (net) ___________
439 C2. Domestic purchases — 8% (net) ___________
440 C3. Import purchases (net) ___________
441 C4. Total input JCT (C1×10% + C2×8% + C3×10%) _______
442 C5. Reverse charge input credit ___________
443 C6. Transitional credit adjustments ___________
444 C7. Total input credit (C4+C5+C6) ___________
445 
446D. NET CONSUMPTION TAX
447 D1. Net national JCT (B4 − C7) ___________
448 D2. Local consumption tax (D1 × 22/78) ___________
449 D3. Total payable (D1 + D2) ___________
450 D4. Interim payments deducted (中間申告) ___________
451 D5. Net payable / (refundable) (D3 − D4) ___________
452 
453REVIEWER FLAGS:
454 [ ] QIS registration numbers confirmed for all major suppliers?
455 [ ] Eat-in vs. takeout split confirmed for food items?
456 [ ] Reverse charge self-assessments documented?
457 [ ] Transitional credits for non-QIS suppliers calculated?
458 [ ] Taxable ratio computed for 95% rule check?
459 [ ] Simplified tax method (簡易課税) applicable?
460```
461 
462---
463 
464## Section 8 — Bank statement reading guide
465 
466### Common Japanese bank CSV formats
467 
468| Bank | CSV columns | Date format | Amount |
469|---|---|---|---|
470| みずほ銀行 (Mizuho) | 取引日, 摘要, 相手先, 備考, 入金, 出金, 残高 | YYYY年MM月DD日 | JPY integer |
471| 三菱UFJ銀行 (MUFG) | 取引日付, 取引内容, お支払金額, お預り金額, 差引残高 | YYYY/MM/DD | JPY integer |
472| 三井住友銀行 (SMBC) | 年月日, 摘要, 金額(出金), 金額(入金), 残高 | YYYY/MM/DD | JPY integer |
473| ゆうちょ銀行 (Japan Post Bank) | 年月日, 取引内容, 出金, 入金, 残高 | YYYY.MM.DD | JPY integer |
474| 楽天銀行 (Rakuten) | 取引日, 入出金種別, 摘要, 入金額, 出金額, 残高 | YYYY/MM/DD | JPY |
475| SBI新生銀行 | 日付, 取引内容, お引き出し, お預け入れ, 残高 | YYYY/MM/DD | JPY |
476 
477### Key Japanese banking terms
478 
479| Japanese | Meaning | Classification hint |
480|---|---|---|
481| 振込入金 | Incoming wire transfer | Potential income |
482| 引落 / 口座振替 | Direct debit | Potential expense |
483| 振込出金 | Outgoing wire transfer | Potential expense |
484| 利息 | Interest | Exempt — exclude |
485| 手数料 | Fee/commission | Potentially exempt |
486| 残高 | Balance | Running balance — ignore |
487| 摘要 | Description/narrative | Key classification field |
488| 相手先 | Counterparty | Key identification field |
489| ATM出金 | ATM cash withdrawal | Tier 2 — ask |
490| 定期振込 | Regular/standing transfer | Check if business expense |
491 
492---
493 
494## Section 9 — Onboarding fallback
495 
496If the client uploads a bank statement but cannot immediately answer all onboarding questions:
497 
4981. Classify all transactions using the pattern library (Section 3)
4992. Apply conservative defaults from Section 1
5003. Mark all Tier 2 items as "PENDING — reviewer must confirm"
5014. Generate the working paper with flagged items
5025. Ask only the following priority questions:
503 
504```
505JAPAN JCT ONBOARDING — MINIMUM QUESTIONS
5061. What is your QIS registration number? (T + 13 digits)
507 If unregistered: confirm annual taxable sales are below JPY 10M
5082. What is your fiscal year start and end date?
5093. Are you using the simplified tax method (簡易課税)?
510 If yes: what is your primary business category?
5114. Do you make any exempt sales (e.g. residential rent, financial services)?
5125. Any export sales to overseas clients? (zero-rated)
5136. Are there any vehicle expenses? What is the business-use percentage?
5147. Any mixed-rate convenience store purchases with itemised receipts?
515```
516 
517Do not ask for information that can be inferred from the bank statement.
518 
519---
520 
521## Section 10 — Reference material
522 
523### Key legislation
524 
525| Topic | Reference |
526|---|---|
527| Consumption Tax Act | 消費税法 (Act No. 108 of 1988, as amended) |
528| Standard rate | 消費税法 Article 29 |
529| Reduced rate | 消費税法 附則第34条; 軽減税率制度 |
530| Exemptions | 消費税法 Article 6; 別表第一 |
531| Exports zero rate | 消費税法 Article 7 |
532| Input tax credit | 消費税法 Articles 30–36 |
533| QIS (qualified invoice) | 消費税法 Articles 57-2 to 57-4 |
534| Simplified tax | 消費税法 Article 37 |
535| Penalties | 国税通則法 (National Tax General Act) |
536| Reverse charge (digital) | 消費税法 Article 28(2); 5% rule |
537 
538### Known gaps and escalation triggers
539 
540- 95% rule with proportional allocation methods (個別対応方式 / 一括比例配分方式) — escalate to zeirishi
541- Real estate and construction long-term contracts — escalate
542- Non-resident digital service providers' separate obligations — escalate
543- Corporate group consolidated filing — escalate
544- Transfer pricing adjustments — escalate
545 
546### Self-check before filing
547 
548- [ ] All QIS registration numbers recorded for input credits claimed
549- [ ] Eat-in / takeout split resolved for all food items
550- [ ] All export sales supported by evidence
551- [ ] Reverse charge self-assessments included in return
552- [ ] Transitional credits calculated for any non-QIS suppliers
553- [ ] Simplified tax method elected? If yes, industry ratio applied
554- [ ] Interim payment (中間申告) credited against total payable
555 
556### Changelog
557 
558| Version | Date | Change |
559|---|---|---|
560| 1.0 | 2024 | Initial release |
561| 2.0 | April 2026 | Full v2.0 rewrite: supplier pattern library, worked examples, QIS update, no inline tier tags |
562 
563---
564 
565## Prohibitions
566 
567- NEVER allow input tax credit without confirming QIS invoice availability (post October 2023)
568- NEVER classify eat-in restaurant meals at 8% — standard 10% applies
569- NEVER claim input credit for exempt purchases (residential rent, financial services, medical)
570- NEVER omit reverse charge self-assessment for B2B digital services from non-resident suppliers
571- NEVER apply simplified tax method without confirming election (簡易課税選択届出書) was filed
572- NEVER present calculations as definitive — always label as estimates and direct to a licensed zeirishi (税理士)
573 
574---
575 
576## Disclaimer
577 
578This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a zeirishi 税理士 or equivalent) before filing or acting upon.
579 
580The most up-to-date version of this skill is maintained at openaccountants.com.
581 

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Q3: AI-drafted

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About

Use this skill whenever asked to prepare, review, or classify transactions for a Japan Consumption Tax (JCT) return (消費税及び地方消費税の確定申告書), handle Qualified Invoice System (QIS / 適格請求書等保存方式) compliance, or advise on JCT registration, filing, and reporting. Trigger on phrases like "prepare consumption tax return", "JCT return", "消費税", "shouhizei", "qualified invoice", "tekikaku invoice", "e-Tax filing", or any Japan consumption tax request. ALWAYS read this skill before touching any JCT-related work.

JPty-2025

JP skill: