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According to Japan Consumption Tax Law (JCT), software developers outside japan are responsible for collecting and remitting JCT. How can they do that? One more question as no US states are mentioned in the article: does this mean developers must remit tax in those states?

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  • Only do business in those countries where you are prepared to do the necessary compliance? Also, some US states don't have a sales tax, or at least no sales tax on digital goods.
    – amon
    Commented May 17, 2020 at 14:16
  • It is known that business is to be done in those countries only however the avarage japanese spending on digital goods and services is too high to let go .One would probably leave out japan but it is a great place to supply services and digita goods and other digital Commented May 17, 2020 at 15:27
  • Then you need to figure out how to appoint a Tax Agent and register as a foreign business in Japan, or determine whether you are able to use some exemption, e.g. whether an income threshold applies.
    – amon
    Commented May 17, 2020 at 15:47
  • Do they? Say I, in the US, develop an app that I put on the Google store. Someone buys that app, but I have no way to know whether they're located in Kyoto or Kalamazoo. From my point of view all transactions take place in the US.
    – jamesqf
    Commented Sep 15, 2020 at 16:46

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Disclaimer: I am not a financial advisor or an official tax advisor. You should consult your agent to discuss and plan a real set of actionable steps that allow you to comply with the regulation.

According to Japan Consumption Tax Law (JCT), software developers outside japan are responsible for collecting and remitting JCT. How can they do that?

When entering a regional market, one must always comply with the regulatory body that is in place there. In your case for Japan, you must pay taxes if you sell in the Japanese market.

One approach to keeping track on how much you need to pay the Japanese government is by keeping track of all sales in Japan and the revenue stream.

From that, you can calculate how much you need to remit to the government.

Japanese Tax Document: You can pull up the rates here.

as no US states are mentioned in the article: does this mean developers must remit tax in those states?

Underneath the section for United States, you can find that Google has already listed the regulatory states that have sales tax, and they will remit the tax for you.

Excerpt from Google's Documentation:

In accordance with sales tax requirements, Google is responsible for determining, charging, and remitting sales tax for Google Play Store app and in-app purchases by customers in these states. Google will collect and remit sales tax to the appropriate tax authority, as applicable.

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