Taxes on Stripe fees for businesses in Japan

For Stripe account holders in Japan, Japanese Consumption Tax (JCT) applies to certain Stripe fees (such as Connect, Radar and certain payment processing fees) at the prevailing standard rate.

The JCT fee is applied in addition to Stripe’s product and service fees. Your monthly tax invoice containing details of these fees will be delivered to the Documents section of your Stripe Dashboard by the 10th of each month (Settings > Reporting and Documents > Documents).

Check the articles below to learn more about your monthly tax invoices:

Understanding our qualified tax invoice for Stripe fees

How to reconcile your qualified tax invoice in Japan

Download tax invoices for Stripe fees

Effective from 1 October 2023, a new “Qualified Invoice System” will be introduced in Japan. Stripe Japan has been registered as a business issuer of qualified invoices, and will issue compliant tax invoices.

Rounding logic for JCT for qualified tax invoices.

The JCT amounts in the qualified tax invoices will be rounded at the overall invoice level to the nearest yen in accordance with the National Tax Agency’s requirements.

Refer to the table below to see which payment-processing and merchant-acquiring services are subject to JCT:

Fees

Taxable

Visa

No

Mastercard

No

JCB

Yes

American Express

Yes

Discover

Yes

Diners Club

Yes

Konbini

Yes

Alipay

Yes

WeChat Pay

Yes

Japan Bank Transfer

Yes

All other payment methods

Yes

Link

Depends on the underlying funding source (see above)

FX

Depends on the payment method (see above)

Disputes

Yes

Software-as-a-service (Connect, Radar, Billing, Stripe Tax, etc.)

Yes

You may be entitled to a consumption tax credit in relation to the above taxable services. We recommend consulting with your accountant or tax advisor for more information. We will provide you with a qualified tax invoice for fees subject to JCT 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.

Check out the article below to learn more about the qualified invoice system and qualified tax invoice:

October 2023 Japan Consumption Tax Updates, and pricing updates for businesses based in Japan