Taxes in Japan

Setting up taxes for stores based in Japan

Japan uses location-based taxes, which means that taxes are calculated using your address and your customer's address. You're not required to enter tax registration numbers to charge tax to your customers, but you might need to set tax rates manually.

Enable tax-inclusive prices

In Japan, merchants are required to use tax-inclusive pricing. For new merchants, product prices include tax by default. If you aren't yet selling with tax-inclusive prices, then enable the All prices include tax setting in the Shopify admin.

Steps

  1. From your Shopify admin, go to Settings > Taxes.
  2. Check All prices include tax.
  3. Click Save.

After you enable this setting, the prices in your store will include tax. The listed price for a product is the amount that the customer will pay, and the tax portion of the price is calculated using the formula Tax = (Tax Rate X Price) / (1 + Tax Rate). Learn more about including tax in your product prices.

Change your product prices

If you already have product prices set without tax, and you need to change them to tax-inclusive pricing, then do one of the following:

  1. Change your prices manually.
    1. Calculate the price of your products after tax has been added.
    2. Enable tax-inclusive prices in your Shopify admin.
    3. Change your product prices to the tax-inclusive value. You can use bulk actions to change all your products at once, or update your product prices by uploading a CSV file of your products.
  2. Change your prices using an app for bulk price editing. The suggested app is CustomEdit.

Use CustomEdit

CustomEdit is an app that changes the price of your products by a specific percentage. You can choose to change all your products or selected products, and choose whether you want the changes to take effect immediately or at a set time.

Steps

  1. Add the CustomEdit app to your store from the app store.
  2. In your Shopify admin, go to Apps > CustomEdit.
  3. In the Price modification field, enter the percentage value that will be applied to your products. This value is set to 10% by default.
  4. Set the price rounding value. This value indicates how many decimal points the result is rounded to, with 0 rounding to the nearest dollar amount. This value is set to 2 by default.
  5. Optional: To filter for specific collections to change, click Load collection. To filter for specific products, click Load items.
  6. Check the products you want to change,
  7. Do one of the following:
    • To change to all displayed products immediately, click Save all, and then click Confirm.
    • To change all displayed products at a later time, click Save all later, select a date and time, and then click Confirm.
    • To change specific products immediately, check the products you want to change, click Save selected, and then click Confirm.
    • To change specific products at a later time, check the products you want to change, click Save later, select a date and time, and then click Confirm.

There might be a delay in updating your products, depending on how many you've selected.

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