Meeting Japanese Consumption Tax Requirements

The Japan Localization SuiteApp provides Japan-specific tax features designed to meet Japanese tax requirements.

Japan Tax Preferences

You can use several preferences when configuring Japanese tax nexuses, including the following:

Tax Rounding Method - Select whether you want round off, round down, or round up when you calculate tax. This is necessary because you must express Japanese yen using integers, you cannot express yen in less than a whole integer. For example, you can have 100 yen, but not 100.2 yen.
Print Tax Code Summary on Sales Forms - Check this box if you want to include a summary of the taxes paid per tax code on printed transaction forms.
Foreign Trade - Check this box if your company conducts trade with foreign companies or individuals.
Tax Reporting Cash Basis - Check this box if your company reports its tax liability on a cash basis, rather than an accrual basis.
Display Tax Registration Number in Web Store - Check this box to allow customers to enter their Tax Registration Numbers when checking out of your Web store.
Tax Code for International Sale - Choose the default tax code for orders placed by international customers.
Tax Code Lists Include - Select the tax codes to appear on transactions. The Tax Code Lists Include preference does not apply to journals.
Tax Calculation Type - Select tax calculation method whether you want for your accounting procedures.

Japan Consumption Tax Form

The Japan Consumption Tax Form, required starting October 1, 2019, is provided as two tax tables in subtabs. You can accomplish the Japan Consumption Tax Form along with other deductible tax appendices by manually entering values in some of the boxes on the tax form, although the values in most of the boxes are automatically calculated.

Tax Codes

Tax codes determine how much tax is paid for each transaction line item.

Note:

Do not use Tax Group for your transactions, use Tax Codes instead.

Tax Rounding Setting per Entity

You can specify how NetSuite should round decimals when calculating Japanese taxes.

Round off
Round down
Round up when you calculate tax.

Item Prices Include or Exclude Tax

You can select an option to automatically calculate the tax on an Item and then include that tax in the Item's price that NetSuite displays to customers.

Consumption Tax Reports

The following tax reports are available:

Purchase Transactions with Tax Information
Purchase Tax by Tax Category
Sales by Tax Code
Purchases by Tax Code
Sales by Account
Purchases by Account

For more information about working with consumption tax, see Consumption Tax Overview - Japan.

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