Consumption Tax Adjustment on the Change of Use of Fixed Assets
FY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
2020/04/09 1 min read

The Tokyo Olympic and Paralympic Games (“the Games”) have been postponed until the summer of 2021 due to the worldwide COVID-19 outbreak. Special tax exemption rules, as provided for in the Act on Special Measures Concerning Taxation, will apply to non-resident athletes, game officials and foreign corporations involved in the Games.
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FY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
Under Japan’s consumption tax rules, input tax credits for "adjustable fixed assets" are credited upon acquisition. However, if the use of assets changes within three years, an adjustment is required.
Revenue recognition is a key performance metric affecting financial figures. This article explores examples of differences between accounting and tax treatment in Japan.
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