(revised on July 31st 2015 based on 2015 tax reforms)
Q1: What will change under the 2015 tax reforms?
A1: Before the reforms, when customers who were residents of Japan used AWS services based in Japan (i.e., the “Tokyo Region”), the transaction was considered domestic and the customer paid Japanese consumption tax. From October 1, 2015, however, Japan residents will pay Japanese consumption tax even if they use AWS services based in regions outside Japan.
Q2: Do the prices shown on the AWS Website include tax or not?
A2: Since April 1, 2014, prices for services shown on the Website have not included tax.
Q3: Is AWS, Inc. a registered foreign business?
A3: Yes. AWS, Inc. is a registered c-tax payer in Japan. The registration number is 00004. For details, please visit the NTA homepage.
Q4: Will invoices for AWS services change?
A4: Beginning October 1, 2015, customers who are residents of Japan will receive service invoices that include the registered foreign business number of AWS, Inc.
Q5: How can I confirm my amount of consumption tax?
A5: It will be itemized on the Invoice page of the AWS Billing and Cost Management, and on PDF invoices. On the Invoice page, the tax is labeled “Consumption tax levied (Japan).” On PDF invoices, the tax is labeled “CT.”
(Modified on October 4th 2019 based on 2019 tax reforms)
Q6: What will change under the 2019 tax reforms?
A6: AWS will charge 10% Consumption Tax on residents of Japan who use the AWS services based in regions inside and outside Japan from October 1st 2019. Timing of tax rate change for the usage fees for AWS services is based on PDT (Pacific Daylight Time)
Q7: When customer makes long term contract, such as Reserved Instances, before October 1, 2019, how AWS will apply tax rate?
A7: Even though customer makes long term contract, such as Reserved Instances, before October 1, 2019, AWS will apply tax rate fee based on the time the services rendered. For example, if you purchased a one-year partial upfront Reserved Instance on August 1, 2019, AWS will not charge additional tax to Upfront fee that you already paid before. Regarding discounted hourly rate fee which will be charged every month until the contract ends, new 10% tax rate will be applied from October 1, 2019.
Q8: When will AWS Training and AWS Professional Service fees be subject to Japan’s new 10% consumption tax?
A8: For AWS Training and AWS Professional Services, the tax rate applies based on when the service is rendered. For example, with respect to fees for training services that occur on or after October 1, 2019, the 10% tax rate will apply. For an agreement with a duration period of September 1, 2019-October 31, 2019, the billing will be separated for services rendered in September and October, with the new tax rate applying to services rendered after October 1, 2019 for customers residing in Japan.
Q9: Why have I started to now receive a Tax Invoice from October 2019 transactions?
A9: As part of the tax reform, the Japanese tax authorities introduced new requirements related to the details now required on Invoices. Please refer to the Japan National Tax Agency website for more details.
https://www.nta.go.jp/taxes/shiraberu/zeimokubetsu/shohi/keigenzeiritsu/invoice.htm