Consumption tax interim filing

The shortened taxable period explained in the previous article requires a final tax return for each shortened taxable period.

Unlike this, the interim consumption tax return system explained here assumes that the taxable period is one year, the same as the fiscal year, and a final tax return is filed once a year. Apart from that, the obligation to file one or more interim returns will arise depending on the size of the tax amount.

Companies with a shortened taxable period are not required to file an interim return.

The amount of consumption tax for the previous taxable period (a)Interim payment tax amountNumber of consumption tax returns filed per year
480,000 yen or lessNoneNo interim filing is required.
1 final return.
Over 480,000 yen to 4million yen6/12 of the (a)1 interim filing.
1 final return.
Over 4 million yen to 48 million yen3/12 of the (a)3 interim filing.
1 final return.
Over 48 million yen1/12 of the (a)11 interim filing.
1 final return.

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Taxable period and Base period for consumption tax

Principle of taxable period

For the Japanese consumption tax, which is a value-added tax, the taxable period for corporations is, in principle, the fiscal year.

The base period refers to the period on which the determination of tax liability is based, which in the case of a corporation is the two fiscal years prior to the current fiscal year.

More details on consumption tax liability will be explained in another article.

Exceptions to the taxable period

A company can use 3 months or 1 month as its taxable period if it notifies the tax office of the special exception.

It is often used by companies that file consumption tax refunds, such as exporting companies, for cash flow reasons.

Under the Consumption Tax Law, base period is defined on the basis of “fiscal year” rather than “taxable period”.

The reason why the base period is defined based on “fiscal year” instead of “taxable period” is to ensure that the result of determination of tax liability is consistent even when the special exception for shortened taxable period is applied.

Therefore, even if the taxable period is shortened, the determination of tax liability is made based on the “fiscal year,” and the tax liability for the shortened taxable period included in the “fiscal year” is unified.

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☑Initial consultation.
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