Customs duty, where the product's HS code carries one, is charged first, and consumption tax is then calculated on the value including duty. Many consumer goods enter Japan duty free or at low rates, which tempts sellers to assume the border is free. The consumption tax still applies, and for personal imports a portion of the value may be treated under the personal import allowance rules, which differ from commercial import treatment. That distinction is exactly where casual sellers get caught: a shipment structured as personal for a commercial sale is a compliance problem, not a saving.
Carriers handle the collection in different ways: a bill to the recipient, a cash on delivery collection, or prepaid under DDP. Each has a different refusal rate. Prepaid with the tax shown at checkout is the only version where the buyer cannot be surprised, and surprise is the main cause of refused international deliveries everywhere, not just Japan.
Japan's qualified invoice system requires registered businesses to issue invoices with a registration number for buyers to claim input tax credits. A US seller selling B2C to Japanese consumers rarely feels this directly. A US seller selling B2B, to Japanese retailers or distributors who want to credit the tax they pay, feels it immediately. Your Japanese business customer will ask how the tax on their purchase is documented, and a checkout receipt built for US sales tax will not answer the question.
If B2B in Japan is a real channel for you, settle the invoicing route with your Japanese importer of record before the first order. In most structures the importer of record is the Japanese buyer or a local agent, and they are the party in the Japanese tax system. Your job is accurate commercial documents: values, HS codes, and origin, stated consistently across the invoice and the packing list.
Build the Japan price from the customs value up: product, freight, duty by code, then 10 percent consumption tax on the duty inclusive base, then your carrier's advancement or handling fee if they collect. Show that total at checkout for DDP, or state clearly and early that taxes are payable by the buyer on delivery if you sell DAP. Burying the terms in a shipping FAQ does not count as telling the buyer. They will still refuse, and they will still be angry.
Reduced rate food at 8 percent needs care at the line level. A bundle mixing food and non food items can complicate the rate applied. Keep mixed bundles out of your Japan catalogue unless your broker has told you exactly how the shipment will be treated. Simple catalogues clear customs. Clever ones wait.
Japanese customs rewards consistency. The commercial invoice, the HS codes, the declared value in a convertible currency, and the product descriptions should agree with each other and with what is in the box, in English or Japanese with enough specificity to classify without opening the parcel. Vague descriptions like goods or parts are an invitation to an inspection and a delay.
Confirm current status with a licensed customs broker or your carrier's Japan desk before a sourcing decision. Thresholds, personal import treatment, and invoicing rules all change, and the cost of a stale assumption in Japan is a warehouse of refused parcels, not a warning letter.
It works more like a VAT. Businesses charge it on sales and credit the tax they paid on inputs, and imports are taxed at the border so imported and domestic goods compete on the same base. The standard rate is 10 percent, with 8 percent for qualifying food and beverages.
Because the shipment was sold on terms where import taxes are the buyer's responsibility, often called DAP. The carrier paid customs on the buyer's behalf and collected at the door. Selling DDP, with tax collected at checkout, removes that bill.
Its main pressure is B2B, where Japanese business buyers need a qualified invoice to credit input tax. Pure B2C sellers feel it far less, but any seller with Japanese business customers should settle invoicing with the importer of record in advance.
Do not assume so. Personal import treatment and commercial import treatment differ, and consumption tax can still be assessed. Model your actual shipment type with a broker rather than relying on a de minimis style assumption borrowed from another country.