Overview

Amazon applies Japanese Consumption Tax (JCT) to selling fees for sellers who reside in Japan and operate on Amazon.co.jp. Since October 2015, this tax has been set at 10% (raised from the original 8% rate introduced in 2015), and it applies to fees charged under both Individual and Professional selling plans. Understanding how JCT affects your Amazon selling costs is essential for accurate bookkeeping and tax compliance.

Key Points / What Sellers Need to Know

• JCT applies to Japan-resident sellers — Amazon charges consumption tax on selling fees for sellers whose account information indicates they reside in Japan, regardless of whether they also sell internationally.
• Residency determines tax liability — Amazon uses the country-of-residency information in your seller account to decide whether JCT applies. If your details are outdated, you may be charged incorrectly.
• No refunds on JCT charged — Amazon does not issue refunds for consumption tax already collected on selling fees. The tax is remitted directly to the Japanese National Tax Agency (NTA).
• Monthly invoices are provided — Tax invoices reflecting JCT charges are available in Seller Central each month and are also sent to your primary email address on file.
• Some fees are exempt — Certain service fees, including Fulfillment by Amazon (FBA) fees and tax calculation services fees, are not affected by JCT on selling fees.

How JCT Is Applied to Selling Fees

Amazon automatically calculates and applies JCT to your selling fees if your seller account indicates you are a Japan resident. The tax is added on top of standard selling plan fees, referral fees, and other applicable charges associated with your Amazon.co.jp transactions. International sales made through your Japan-based account are also subject to JCT on the associated selling fees, since the tax obligation is tied to seller residency rather than where the buyer is located. Sellers do not need to take any manual action to trigger the tax calculation — it is handled entirely by Amazon based on your account profile.

Invoicing and Record-Keeping

Amazon generates a monthly tax invoice that details the consumption tax charged on your selling fees. These invoices become available in your Seller Central account the month following the charges. For example, JCT charged on selling fees in January would appear on your February tax invoice. You can access these documents by navigating to the Reports section within Seller Central. For business entities, the invoice includes Amazon's business registration number and a breakdown of the consumption tax collected, which is the documentation you need to claim input consumption tax credits on your own tax filings.