Kojin Jigyo and VAT

[Sarutaro]

I am in the process of setting up a kojin jigyo (sole propritorship) here in Japan for selling items online. Simple question - what about the consumption tax? Should I specify 5% consumption tax on my invoices and receipts, e.g.:
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INVOICE

1x Latex thong JPY500
1x 500 ml lube JPY 300

VAT 5% JPY40
TOTAL JPY840
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[matsuki]

Yep, it's the raw lound deez paatsu.

[wagyl]

I am not in any way a tax accountant, but businesses with annual sales less than 10 million Yen (currently, in the case of a sole proprietorship, in the year before last, but this reference period will change in 2013) are exempt from having to make consumption tax payments to the National Tax Agency.

[Sarutaro]

Thanks for your answer. By the time the business makes 10 mil per year I can hopefully hire someone to worry about these things for me...

[matsuki]

I am not in any way a tax accountant, but businesses with annual sales less than 10 million Yen (currently, in the case of a sole proprietorship, in the year before last, but this reference period will change in 2013) are exempt from having to make consumption tax payments to the National Tax Agency.

That's nice but would that apply for someone creating a sole proprietorship today?

[wagyl]

That's nice but would that apply for someone creating a sole proprietorship today?

Repeating in the strongest terms that I am not in any way a tax accountant, the page I linked goes on to say that new corporate bodies (and although not express on that issue I think we can presume that this includes sole proprietorships) are in principle exempt for the first two years of operation. Corporations with capitalization exceeding 10 million Yen are excluded from this exemption, and those which purchase assets other than inventory (and other exceptions) with a unit price exceeding 10 million Yen are prohibited from such exemptions for a period of three years.

All of this information is relating to transactions within Japan. Export transactions are not subject to consumption tax.

And any deeper information than that which can be found on the National Tax Authority's site should be obtained from a professional. Or a pro.

[gaijinpunch]

Thanks for your answer. By the time the business makes 10 mil per year I can hopefully hire someone to worry about these things for me...

I have a Kabushiki Gaisha, and I was exempt from consumption tax for the first 3 years. Not sure if that helps you or not.

Export transactions are not subject to consumption tax.

This is true, but you will need to tick the "goods" box on the customs form, which means the recipient can get sodomized by his local tax authority.