If you are in an export business, you will be able to get consumption tax back. It should be easy by theory but there are traps that you don’t want to fail.
- Your business has to be registered as a consumption tax filer. The default status for SMEs is the exemption status. You need to submit an application form to become a consumption tax filer. Unless you chose to be a consumption filer, you will be a non-filer and you will not be able to claim a consumption tax refund at all at the time of filing. The deadline to become a c-tax filer for your first fiscal year is the end of the first year. If you miss even a day, you will be a non-filer. The deadline for the second year, the third year and onward, it’s the end of its previous year.
- You need export it under your name. If handling of passing the customs house is done by somebody’s name (e.g. shipping company or export agents), you will not be able to claim the consumption tax on goods that you purchased for the export. Its inco-terms have to be FOB, CIF or other D-conditions but never Ex-Factory or Ex-Works. They are regarded as domestic sales which are taxable sales in Japan.