As of October 1, 2015 supplies of cross-border digital services are subject to Japanese Consumption Tax (“JCT”) rules whereby the nonresident supplier who meets certain criteria is required to collect and remit JCT on sales to Japanese customers.
Although Amazon Web Services, Inc. (“AWS”) is established in the United States, it is registered for JCT purposes (the registration number is 00004). As such, AWS accounts for JCT on certain cloud computing services.
Certain telecommunications services are sold by AMCS LLC (“AMCS”), an Amazon entity. For further information, please click here. AMCS is registered for JCT purposes (the registration number is 00094). As of January 1, 2020, JCT applies on services provided to Japanese customers by AMCS.
The JCT rate has been increased to 10% from 8% effective on October 1, 2019. The prices quoted on the AWS website are JCT exclusive. If JCT is charged on a supply, as of October 1, 2019, a tax invoice will also be issued to you and it will appear in your billing console. JCT collected from Japanese customers is remitted to the Japanese tax authorities by AWS and AMCS.
If you purchase cloud services via the AWS Marketplace, note that AWS is not required or allowed to collect JCT on sales made by Marketplace Sellers.
If you are JCT registered, you may be entitled to recover the JCT paid on services provided by AWS and AMCS through the tax return filing process. More information regarding the recovery of JCT can be found on the NTA official page.