Japan Cross-Border Tax Update: Low-Priced Items Now Subject to Consumption Tax

This means that any product sold through cross-border platforms to Japan, regardless of origin—China, the US, or elsewhere—with a price below 10,000 JPY will be subject to a 10% consumption tax.

Which Platforms Are Affected?

• Nearly all cross-border platforms, including Chinese, US, and Japanese local platforms.
• Japan will treat platforms as the responsible taxpayer, requiring them to withhold and pay the 10% consumption tax on behalf of sellers.
• Platforms will also handle seller qualification checks and tax compliance audits.

Impact on Sellers

• Low-ticket, high-volume strategies will face increased cost pressure.
• Platform withholding and compliance processes may add operational complexity.
• Product pricing and profit calculations must account for the new tax cost.

GoodShip56 Recommendations

As a professional China-US cross-border logistics provider, GoodShip56 supports sellers with full logistics solutions and tax compliance guidance:

• Cost Calculation: Reassess profit margins for low-priced items in the Japanese market.
• Tax Compliance: Understand platform withholding mechanisms to maintain clear accounts and avoid tax risks.
• Logistics Optimization: Combine air, sea, and warehousing solutions to reduce operational costs.
• Market Strategy Adjustment: Optimize product selection and increase average order value to maintain profitability.

The cross-border market is increasingly competitive. Understanding policy changes and planning ahead will help sellers stay competitive after the new rules take effect. GoodShip56 is your partner for stable and efficient cross-border operations.