Determination of domestic or foreign transactions regarding online meeting for Japanese consumption tax purposes



Recently, online meeting has become common way when we have a meeting, due to the Covid-19 effect.

Since this tendency will probably continue with/after Covid-19, we are going to consider the Japanese consumption tax treatment regarding online meeting.


In the case where an international conference is held on the web in Japan and participants attend the conference online from Japan and/or outside of Japan, how would the participation fee be treated for Japanese consumption tax purposes?


Firstly, it should be determined whether or not this transaction falls under the provision of electronic service for consumption tax purposes.   Provision of electronic services is services provided via electronic and telecommunication networks (e.g., internet) such as the provision of e-books, music, and advertisement.  Since the international conference is virtually held on the web, this transaction is treated as the provision of electronic service for consumption tax purposes.


Then, whether transactions are domestic or foreign is determined if the address of the electronic service recipient is in Japan or not, therefore, if recipient is in Japan, participation fee is treated as domestic transactions and taxable transaction for consumption tax purposes.  If not, participation fee is treated as foreign transaction and non-taxable transaction for consumption tax purposes.