exporteers.online VAT percentage: The VAT percentage in Japan for most goods and services is 8%, but which will be raised to 10% from October 2019.

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1 Fees and taxes factsheet Japan Price for the customer: In Japan, consumer pricing need to indicate whether the price includes VAT (called as Consumption Tax). B2B pricing is mostly indicated without VAT. VAT percentage: The VAT percentage in Japan for most goods and services is 8%, but which will be raised to 10% from October Platform sales fees: In Japan we sell through Amazon.co.jp. Amazon charges sales fees depending on the product category. Product Category Sales charge Electronics, PC, Camera, Musical Instruments 8% Toys & Hobby goods, Sports & Outdoor, Car & Motorbike goods, Food & 10% Drinks, Accessory of electronics, Drugstore items Closing, Shoes & bag, Watches, Jewelry, PC software, Baby and 15% Maternity goods, Home furniture/interior/kitchen goods, Pet goods, Stationary, Office supply, TV game, DIY, Industrial equipment, Home appliance Beauty goods (designated brand) 20% For media products, following sales charges and shipment costs are applied. Category Sales charge Fixed charge Shipment cost Book 15% JPY 60 JPY 257 CD / Record 15% JPY 140 JPY 350 DVD / Blu-ray 15% JPY 140 JPY 350 VHS 15% JPY 30 JPY 391 Alliance experts fees: For adding any new product item to the platform, and translating your English content in Japanese, we charge JPY 2,500 per product or product variety, plus a first-time fee of JPY 100,000. For answering customer questions, keeping an eye on your shop and on the delivery, and for our monthly reporting, we ask 12% of your sales, with a minimum (measured over our total commission) of JPY 2,500 per product item per month. For any returns that go to our local return address, or that we have to collect from the fulfillment center, we will consult with you whether to reuse the product, to forward it to you or to dispose it. We ask JPY 2,500 for handling, plus any shipping charges to send it to you or to a next customer.

2 For obtaining import permit or reporting for those products required by Japanese law such as food & drink, cosmetics, leather goods, plant etc., we will quote our fees depending on the requirement by the competing authorities. Please note that the fees as mentioned in your contract with us always prevail above this document. Where it comes to taxes, duties and fees for the platform, shipping providers and the fulfillment centers, we will only invoice you the costs and taxes as we pay them, and these may change without further notice. Specifically for Dropshipping Getting your goods into Japan from outside Japan Our Alliance experts company in Japan will be the seller of your products to the end customer. You will be selling to us, but shipping to the address that we designate. You have to make sure that all shipping cost to the end customer is paid. If the import value of the product (incl. shipping cost and insurance) is less than JPY 10,000, no VAT need to be paid. If the value is equal or more than JPY10,000, then VAT is payable on the import value and any import duties. If the value of a shipment (incl. shipping cost and insurance) is equal or less than JPY 10,000, no import duties will be charged. With a value equal or over JPY 10,000 and equal or less than JPY 200,000, import duties need to be paid according to the simplified tariff, which are in general 5%, except for the specified items as shown in the appendix. Specific duties can be calculated through: Most freight forwarders like DHL will pay the VAT and import duties on behalf of the importer and charge the same amount to the importer. Please check with your freight forwarder the exact postage for your product and destination. The freight documents must clearly state the import value of the product and that we are the importer, including our tax details. Typically we pay the VAT to customs office and will reclaim the amount to tax office without any involvement of the exporter.

3 For more clarification, please see the following example: (a) Net sales price excl. VAT JPY 100,000 (b) VAT on sales price 8,000 (c) Platform cost Amazon.co.jp (10% case, excl. VAT) 10,000 (d) VAT on platform cost 800 (e) Amount credited to us 97,200 (f) Sales fee for us (12% of (a)) 12,000 (g) Import value = (a) (c) (f) 78,000 (h) Import duties on (g) (5% case) to be paid by us 3,900 (i) Import VAT 8% on (g) + (h) to be paid by us 6,552 (j) Credit to you = (g) (h) 74,100 (k) Settlement of VAT to be paid to tax office by us = (b) (d) (i) 648 Please note that from the value credit to you (j), you have to deduct the shipping costs and insurance premium, in order to compare this with the cost price for your products. For those items which require import permit or reporting, this drop shipping scheme shall not be applied, considering the process and cost in obtaining such permission in each shipment. Specifically for Local fulfillment Fulfillment fees We prefer to work with Amazon s fulfillment solution (FBA: Fulfilment by Amazon). Storage: JPY 7.8 or 9.0 / 1,000 cm3 x days of the month (plus 8% VAT): You will pay the total storage fees monthly to Amazon through us by prepayment. Delivery charge: Small Regular Big Size (cm) Weight (Kg) Price (JPY) (plus 8% VAT) < 25 x 18 x 2 < 45 x 35 x 20 > 45 x 35 x 20 & L+W+H <100 > 45 x 35 x 20 & L+W+H= > 45 x 35 x 20 & L+W+H= < 0.25 < 9 >= 9 >= 9 >= 9 >= kg: kg: ,398 > 45 x 35 x 20 & L+W+H = Other charge: labelling charge, packing charge etc. as option Return policy:

4 Amazon accepts the return or exchange of product within 30 days from arrival of the product at customer. After 30 days, the amount of return will be decreased by 20%. Return or exchange due to trouble or deficiency of the product: Full amount of the product including shipment cost, commission and gift wrapping will be repaid or new product be shipped. Return or exchange due to customer s reason: 100% of product s price if the package is not broken or 50% if the package is broken. In case of returns, the fulfillment center will judge whether they can reuse the product for another client. If not, they will keep it separate. We will regularly check this stock and consult with you. Getting your goods to Japan Given the fact that you will send us a number of boxes at least, the import value will be over JPY 10,000. You will ship your goods on Incoterms DAP basis and this means that we will have to pay import duties if applicable and import VAT as the importer before the goods be sold to end customers. The goods remain in your ownership and will be seen as call-off stock, controlled by us. In this circumstance, you need to advance the import duties and import VAT to us for customs clearance and we will repay the related VAT when ownership transfers to us: which is at the moment that we sell the product to a consumer. The same tariff rate as the case of drop shipping shall be applied. Please note that for certain goods and certain countries there may be differences in excise duties according to the governmental agreement or EPA, that may be settled when you move your goods. This then results in the following example (a) Net sales price excl. VAT JPY 100,000 (b) VAT on sales price 8,000 (c) Platform cost Amazon.co.jp (in case of 10% charge and local shipping/packing cost of YPY2,000, excl. VAT) 12,000 (d) VAT on platform cost 960 (e) Amount credited to us 95,040 (f) Sales fee for us (12% of (a)) 12,000 (g) Import value = (a) 10% of (a) (f) 78,000 (h) (i) Import duties on (g) (5% case) paid by you through us upon importation 3,900 Import VAT 8% on (g) + (h) paid by you through us upon importation 6,552 (j) Credit to you = (g) + (i) 84,552 (k) Settlement of VAT to be paid to tax office by us = (b) (d) (i) 488 Please note that from the value credit to you (j), you have to deduct the shipping costs, insurance premium plus the costs for keeping stock at the fulfillment center, in order to compare this with the cost price for your products.

5 Appendix: Simplified Tariff Schedule on Low-Value Import Goods (under paragraph 3, Article 3 of the Customs Tariff Law) No. Items (specific examples) Tariff 1 Alcohol beverages -1 Wines 70 yen /L -2 Distilled alcoholic beverages such as shochu 20 yen /L -3 Wine coolers, sake, cider, etc. 30 yen /L 2-1 Tomato ketchup and other tomato sauces, ice 20% cream and other ice candies -2 Tanned or dressed fur skins (dropped fur skins) and apparel, clothing accessories and other products made of fur skin 3-1 Coffee and tea (excluding black teas) 15% -2 Gelatin and glue -3 Tanned or dressed fur skins (excluding dropped fur skins) 4-1 Animals (only live animals) 10% Meats and fragments of meat used for cooking Fish, crustaceans, mollusks and other aquatic invertebrate animals Dairy products, poultry eggs, natural honey and other animal food products not falling under any other categories -2 Edible vegetables, rhizomes and tubers -3 Edible fruits, nuts, citrus fruit skins and melon peels -4 Gingers (only those processed for temporary storage) -5 Edible seaweed and other algae -6 Products prepared from meat, fish, crustaceans, mollusks or other aquatic invertebrate animals Sugars and candies Cocoa and products prepared from cocoa Products prepared from cereals, grain powders, starch or milk and bakery products Products prepared from vegetables, fruits, nuts or parts of vegetable -7 Prepared foods of any type -8 Citric acid, etc. -9 Bamboo combs -10 Products made of woven straws, esparto or other braiding materials, basketworks and sprigged craftworks

6 -11 Woven fabrics of silk -12 Other vegetable fibers for spinning and weaving, textiles made from such fibers, paper thread and textiles made from paper threads -13 Knitted or crocheted fabrics -14 Apparel and clothing accessories (excluding knitted or crocheted fabrics) 5-1 Living trees, other plants, underground stalks or roots and the like, cut flowers and decorative leaves -2 Mineral fuels, mineral oils and distillates thereof, bitumen substances and mineral wax -3 Inorganic chemical products, noble metals, rareearth metals, and inorganic or organic compounds of radioactive elements or isotopes -4 Organic chemical products (excluding citric acid, etc.) -5 Tanned extracts, dyeing extracts, tannin and its derivatives, dyestuffs, pigments, other coloring agents, paints, varnish, putty, other mastic and ink. Refined oil, resinoid, prepared perfume and cosmetics Soaps, organic surfactants, detergents, prepared lubricating oils, synthetic wax, prepared wax, polishing agents, candles and the like, modeling pastes, dental wax and plaster-based prepared materials for dental treatment -6 Chemical industrial products of any type -7 Plastics and products thereof -8 Fur skins, artificial furs, and products thereof -9 Textiles made of impregnated, coated, covered, or laminated fibers for spinning or weaving and industrial textile products for spinning or weaving -10 Umbrellas, canes, seat sticks, whips and parts thereof Prepared feathers, down products, artificial flowers and products made of human hair Stones, plasters, cement, asbestos, mica and products made from those kind of materials -11 Glasses and glass products (excluding glass beads) -12 Copper and copper products Nickel and nickel products Aluminum and aluminum products -13 Lead and lead products -14 Zinc and zinc products 3%

7 -15 Base metals, cement and products thereof Tools, instruments, cutlery, spoon and forks made of base metals and parts thereof Base metal products of any type -16 Furniture, bedding, mattresses, etc. -17 Toys, playthings, sporting goods, and parts or accessories thereof 6-1 Animal produces (except those articles falling under Duty free any of other categories) -2 Salt, sulfur, earth and rocks, lime and cement -3 Medical gels -4 Rubbers and products thereof -5 Papers, paperboards, paper pulps, and products made of paper or paperboard -6 Ceramic products -7 Iron and steel -8 Steel products -9 Tin and tin products 7 Articles other than mentioned above 5% It should be noted that the following articles are subject to the application of general tariff, not simplified tariff 1 Duty-free or duty-exempted articles 2 Goods involved with crime 3 Article designated by the Cabinet Order as those inappropriate for the application of simplified tariff from the viewpoint of its impacts on our domestic industries. (See the table below.) Principal items (1)Milk, cream, etc. (2) Mixed beans (3) Cereals (4) Grain powders, etc. (5) Peanuts and konjak (6) Products prepared from pork or beef (7) Products prepared from cocoa (8) Products prepared from cereals or milk (9) Prepared foods (10) Tobacco (11) Refined salts (12) Petroleum (13) Menthol

8 (14) Crude fur skins and leathers (15) Leather products (16) Cocoon and raw silk (17) Knitted clothing (18) Footware (19) Imitation jewelry(excluding base metal products) (20) Leather watchbands (21) Parts of leather seats