Japan has proposed imposing Japanese Consumption Tax (JCT) on inbound cross-border digital services provided to Japanese consumers via certain digital platforms as part of its 2024 Tax Reform.

Foreign entities that provide B2C e-services to Japanese customers via digital platform operators and have taxable sales above JPY 5 billion would be considered "specified platform businesses" under the proposed new rules. The digital platform operators (e.g. Apple, Google) will be responsible for collecting consumption tax on behalf of the foreign entities.

The proposal is expected to be approved by March 2024 and implemented after 1 April 2025.