VAT in Japan with a focus on international transactions

This article discusses some characteristics of and issues relating to the Japanese value added tax, called "consumption tax" in Japan. The article focuses on its application to international transactions because the recent accelerated globalization has made it clear that difficult problems arise for VAT when it is applied to international transactions. After the introductory remarks, the article outlines the consumption tax system in Japan and reviews the general issues relating to VAT when applied to international transactions. The article also discusses the specific issues relating to the consumption tax when it is applied to international transactions, including exports and imports of goods and services. In the last part, the author gives his concluding remarks.