VAT Guide for SaaS & Software in Japan

    SaaS & Software operating in Japan charge the standard VAT rate of 10% (reduced rates: 8%). Registration becomes mandatory at JPY 10,000,000 (~€62,000), returns are filed monthly or annually, and cross-border B2C sales are reported through the EU One-Stop Shop.

    Standard rate10%
    Reduced rates8%
    Registration thresholdJPY 10,000,000 (~€62,000)
    Filing frequencyMonthly or annually
    CurrencyJPY
    In force since01 Oct 2019
    Last verified01 Sept 2026

    Official source

    National Tax Agency

    Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.

    Worked examples

    Domestic sale in Japan

    You invoice a customer based in Japan for ¥1,000 of saas & software work.

    Add 10% VAT: ¥100. Total invoiced ¥1,100, declared in your monthly or annually return.

    Cross-border B2B inside the EU

    A VAT-registered business in another member state buys the same ¥1,000 service and supplies a valid VAT number.

    Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.

    B2C digital sales to other EU countries

    Consumers across the EU subscribe to your platform for a total of ¥10,000 per year.

    Above the €10,000 EU-wide threshold you charge the customer's local rate and file a single OSS return instead of registering in each country.

    Late filing exposure

    Your monthly or annually return is filed after the deadline.

    14.6% annual penalty tax on underpaid consumption tax. Additional 5% for non-filing.

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    Compliance checklist

    • Confirm whether you are above JPY 10,000,000 (~€62,000)
    • Register with National Tax Agency before your first taxable supply
    • Apply 10% on domestic sales and the reverse charge on EU B2B
    • Validate every EU customer VAT number in VIES and keep the proof
    • File monthly or annually and archive invoices for the statutory period
    • Qualified Invoice System mandatory since Oct 2023
    • Reduced 8% rate for food and newspapers

    FAQ — SaaS & Software in Japan

    When must saas & software register for VAT in Japan?

    Registration is required at JPY 10,000,000 (~€62,000). Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.

    Which VAT rate applies to saas & software in Japan?

    The standard rate is 10%, with reduced rates of 8% for specific categories. Applied since 2019-10-01, last verified against National Tax Agency on 2026-09-01.

    How often do I file VAT returns in Japan?

    Monthly or annually. 14.6% annual penalty tax on underpaid consumption tax. Additional 5% for non-filing.

    What must appear on an invoice in Japan?

    Qualified Invoice System mandatory from October 2023. Invoices must include registration number, tax rate, and tax amount.

    Do I charge VAT to business clients in other EU countries?

    No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.

    What is specific to Japan for my sector?

    Qualified Invoice System mandatory since Oct 2023 · Reduced 8% rate for food and newspapers · Reverse charge for cross-border digital services

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    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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