Introduction.
Cross-border e-commerce (E-commerce) has been expanding worldwide with Amazon, eBay, Rakuten, Shopify, WooCommerce, and Corona Vortex, and is now the focus of attention by all companies. Cross-border e-commerce has been introduced with the positive aspects of being able to start selling within minutes of creating a site, and new sales opportunities from markets around the world. On the other hand, local taxes and various other costs are not shared much: local taxes such as VAT are levied and collected by the seller on the local buyer, but even in the case of cross-border e-commerce, there are cases of taxation, collection, and reporting.
Not all tax accountants, lawyers, and other domestic professionals have knowledge of overseas tax and legal affairs.
IN THIS COLUMN, OPTI CORPORATION, WHICH HAS EXTENSIVE EXPERIENCE IN THE TAX ASPECTS OF CROSS-BORDER EC, PROVIDES A "CROSS-BORDER EC TAX NAVIGATOR" IN A Q&A FORMAT. WE HOPE THAT THIS CROSS-BORDER EC TAX NAVIGATOR WILL BE OF HELP TO VARIOUS COMPANIES CONSIDERING CROSS-BORDER EC.
Q] What is VAT registration?
A] VAT REGISTRATION (VALUE-ADDED TAX REGISTRATION) IS THE REGISTRATION OF INDIRECT TAX NUMBERS.
WHILE IT IS OFTEN IMPOSSIBLE TO REGISTER ONLY A VAT NUMBER IN DEVELOPING COUNTRIES, REGISTRATION OF AN INDIRECT TAX NUMBER IS ALLOWED IN EUROPE AND OTHER DEVELOPED COUNTRIES FOR THE TAXATION AND PAYMENT OF INDIRECT TAXES SEPARATELY FROM THE PAYMENT OF CORPORATE INCOME TAX.
THIS NUMBER IS CALLED THE VAT NUMBER (VALUE ADDED TAX NUMBER).
JAPANESE COMPANIES CAN AND IN SOME CASES ARE OBLIGATED TO HOLD, TAX, AND PAY EUROPEAN VAT NUMBERS.
We can assist you in registering and filing your VAT number.
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Disclaimer
This column contains general information only and is intended to be used at the reader's own risk. While every effort is made to improve the accuracy of the information, it may contain inaccuracies. Readers should consult a suitably qualified professional before making any decision or taking any action and assume the entire risk and responsibility for any loss arising from the use of this column.