Japan Consumption Tax (JCT) applies to certain Stripe products and service fees. Starting October 1, 2023, Stripe will charge and collect JCT on certain payment processing transactions.

In addition, for Stripe account holders on sticker pricing, there will be changes to dispute fees starting October 15, 2023. Network tokens are now free, effective immediately.

Stripe will issue new qualified tax invoices in accordance with the National Tax Agency’s requirements that allow you to claim tax credits under the “Qualified Invoice System.”

What’s changing?

Japan Consumption Tax

JCT applies to certain Stripe products and service fees. Starting October 1, 2023, Stripe will charge and collect JCT on certain payment processing transactions. Read below for more details on which transactions this applies to.

Consumption tax credits can, however, be claimed by using the new system for tax credits—the qualified invoice storage method (commonly known as the Qualified Invoice System). There will be no cost impact for most businesses registered as JCT taxpayers. We recommend speaking with your tax advisor to determine your eligibility.

If you wish to issue these types of invoices to your own customers, please refer to our support article to learn how to send them.

Dispute fees

Whether you win or lose a dispute, Stripe incurs a fee levied by the card networks. To cover these costs, starting October 15, 2023, we will no longer return the ¥1,500 dispute fee for successfully contested disputes. The dispute fee itself is not changing.

Network tokens

Network tokens are a card network solution that can substitute primary account numbers (PANs) for online purchases. It automatically updates card details when old cards expire, so your customers don’t need to re-enter anything. For our Japan users, network tokens are used for payments via major card networks in currencies other than Japanese yen. Check the link here to learn more about network tokens.

FAQs

When will these changes take effect?

The changes to JCT and the introduction of qualified tax invoices will take effect on October 1, 2023. You can expect to receive your first qualified tax invoice from Stripe by November 10, 2023. The new fee changes to disputes and network tokens will take effect on October 15, 2023.

How can I offset these costs?

Stripe helps you automatically prevent chargebacks and win more disputes with Stripe Radar and ongoing improvements to the disputes process. You can also help reduce disputes by communicating your policies more clearly with your customers and improving your Stripe integration. Read more about how to prevent disputes here.

How can I calculate the impact of these updates to my business?

There will be no additional cost for most businesses registered as JCT taxpayers, since consumption tax credits can be claimed using the new Qualified Invoice System. We will issue new qualified tax invoices in accordance with the Qualified Invoice System. We recommend speaking with your tax advisor to determine your eligibility.

Do I need to take action to prepare for these changes?

Fee changes will automatically update on October 15, 2023, so no action is required from you. The changes to JCT and qualified tax invoices will automatically go into effect on October 1, 2023.

For the invoices you issue, setting up qualified tax invoices in the Stripe Invoicing product will not occur automatically. You can find step-by-step instructions for setting up qualified tax invoices here.

Is Stripe registered as an issuer of qualified tax invoices?

Yes, Stripe is registered under the National Tax Agency’s new Qualified Invoice System. We will issue qualified tax invoices accordingly, which you can use to claim consumption tax credits. The first qualified invoice that Stripe issues will cover Stripe fees for the month of October 2023 and this invoice will be issued by November 10, 2023. Our registration number is T8010601046367.

What is the Japan Consumption Tax?

For Stripe account holders in Japan, JCT applies to certain Stripe fees (specific payment processing fees and software-as-a-service fees, such as Connect and Radar) at the prevailing standard JCT rate. The JCT charge is applied in addition to Stripe’s product and service fees.

You will be provided with a monthly tax invoice for the JCT that is charged on your Stripe fees. You can learn more about tax invoices here.

Where can I download my tax invoice for my Stripe fees?

You can download these from the Dashboard. Read more here.

Why am I being charged JCT?

JCT applies to certain Stripe products and service fees. Starting October 1, 2023, Stripe will charge and collect JCT from Stripe users in Japan on certain payment processing and merchant-acquiring services and other related fees.

Which transactions are subject to JCT?

Please refer to the following for the taxability of payment processing and merchant-acquiring services:

Stripe currently charges and collects JCT on software-as-a-service (SaaS) products and will continue to do so.

You may be entitled to a consumption tax credit, and we will provide you with a qualified tax invoice for fees subject to JCT starting October 1, 2023, for your records. If you have any queries in relation to your entitlement to consumption tax credit, we recommend consulting with your accountant or tax advisor.

What is a qualified tax invoice?

A tax invoice is a monthly document issued to account holders in Japan that outlines the fees subject to JCT. As part of the new Qualified Invoice System being introduced in Japan on October 1, 2023, Stripe is registered as a business issuer of qualified tax invoices and will be providing qualified tax invoices to account holders for transactions occurring from this date.

What will Stripe’s qualified tax invoice look like?

Stripe’s qualified tax invoices will meet the new invoice requirements, such as displaying Stripe’s registration number, total invoiced amount for each JCT rate and JCT amount for each JCT rate.

When should I expect to receive my first qualified invoice?

The first qualified invoice that Stripe issues will cover Stripe fees for the month of October 2023. This invoice will be issued by November 10, 2023.

Does the JCT change impact sales that I make to my customers?

No, this change pertains solely to Stripe fees that we charge for services that Stripe provides to you. You will receive a qualified tax invoice detailing the JCT and amounts charged by Stripe to you.

Please note, you are responsible for charging any applicable JCT on your transactions and invoices issued to your customers. Please visit our support article for further details.

I’m a Connect platform. What do I need to do for my connected accounts to receive qualified tax invoices?

If you’re a Custom or Express Connect platform, you will be responsible for charging JCT and providing the required invoices to your connected accounts for any fees you charge them. Please refer to our support article to learn how to send the required invoices to your customers.

If you’re a Standard Connect platform, Stripe will charge JCT and provide your connected accounts with qualified tax invoices for any Stripe fees that Stripe charges to them.

Why did I get this notice?

This support page provides more details on the notice we sent you describing changes to certain fees. That is a legal notice sent to Stripe users, even those who have unsubscribed from optional marketing notices. You cannot unsubscribe from legal notices, but if you prefer not to receive any further legal notices from Stripe, you can close your account by following these steps.

Your continued use of Stripe services after October 1, 2023 or October 15, 2023 (as applicable) is subject to these fee changes. Any termination rights you have under your agreement with us are unaffected by this change.