Taxes in Japan

Note

This guide is for merchants who sell in Japan. It's your responsibility to consult with local tax authorities or a tax professional to verify that you charge your customers the correct tax rates, and to ensure you file and remit your taxes correctly.

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.

Activate 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 activate the Include sales tax in product price and shipping rate setting in the Shopify admin.

Steps

1. From your Shopify admin, go to Settings > Taxes and duties.

2. Select Include sales tax in product price and shipping rate.

3. Click Save.

After you activate this setting, the prices in your store include tax. The listed price for a product is the amount that the customer pays, 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 you can change your prices manually:

1. Calculate the price of your products after tax has been added.
2. Activate 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 the same time, or update your product prices by uploading a CSV file of your products.

Learn more about setting and managing product prices.