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JCT Registrations Explained

Updated 2 months ago

Once you have determined that you are required to register for JCT, this article walks you through the available registration types, how filing works, and what to expect.

Available Registration Types

Japan offers one primary JCT registration scheme, with an optional overlay for businesses that want to issue qualified invoices.

Standard JCT Registration

This is the default registration for all businesses — both resident and non-resident — that exceed the JPY 10 million threshold or choose to register voluntarily.

  • Covers all taxable supplies (B2B and B2C, goods and services)

  • Allows full input tax credit recovery (subject to your taxable sales ratio)

  • Required for businesses with a physical presence in Japan and foreign businesses selling B2C digital services

Qualified Invoice Issuer (QII) Registration

This is an optional add-on to the Standard JCT Registration. Registering as a QII allows you to issue qualified invoices, which your B2B customers need in order to claim their full input JCT credits.

  • No separate sales threshold — any taxable person can apply

  • Especially recommended for non-resident SaaS companies with B2B customers in Japan

  • Businesses below the JPY 10 million threshold that register as QII become taxable immediately upon registration

Recommended setup for non-resident SaaS providers: Standard JCT Registration combined with QII Registration.

Local Tax Agent Requirement

Non-resident businesses registering for JCT in Japan are required to appoint a Japanese tax agent (nozei kanrinin). There is no direct self-service filing channel available to foreign entities without a physical presence in Japan.

Filing Frequencies

Your filing frequency is determined by your JCT liability from the prior year.

Prior Year JCT Liability

Filing Frequency

Deadline

Below JPY 480,000

Annual

Within 2 months after fiscal year end

JPY 480,000 to JPY 4 million

Semi-annual (interim payment)

Within 2 months after each 6-month period

JPY 4 million to JPY 48 million

Quarterly

Within 2 months after each quarterly period

Over JPY 48 million

Monthly

Within 2 months after each month end

Annual filing is the default for all registered businesses. Quarterly and monthly filing require an application and approval from the NTA.

First Filing Period

Your first filing period begins on your registration effective date. Only transactions from that date onward are included in your first return.

Nil Returns

Even if you have no taxable activity during a period, you are still required to file a nil return.

Payment

Payment is due at the same time as your return filing. A local Japanese bank account is required to settle JCT liabilities.

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