Consumption Tax in Japan is 8% (i.e. The amount for revenue in Invoice 100, (Consumption Tax 8, Total amount 108)
Here is threshold to become tax payer for consumption tax mandatory. Or, the company can become tax payer by applying for it to tax office voluntarily.
1) Capital JPY 10m (The corporation is becoming tax payer for consumption tax from 1st FY)
2) Tax payable revenue in entire for 1 year JPY 10m (he corporation is becoming tax payer for consumption tax in 2 years FY) It is pro-rated. i.e., if 6 months, the threshold is halved and so= JPY 5m
3) Tax payable revenue for first half FY >=JPY 10m and Total salary for first half FY >= JPY 10m (The corporation is becoming tax payer for consumption tax in 1year FY) , to get this, the condition is more than 8 month in FY and even though it is more than 8 month in FY, it is just checked first 6 month for the both amount. is not pro-rated like #2
Unless above condition is satisfied, the company is non tax payer for consumption tax, lt means that no need for payment and no right for refund to/from tax authority. Even though the vendor, who is not payer, can charge consumption tax in invoice but it will be booked for all total amount as a revenue, no need consumption tax account for booking.
