According to JCT (Japan consumption Tax), B2C supplier outside Japan are not subject to tax imposition. This has brought foreigner suppliers, especially in e-book and entertainment business an unfair advantage against domestics ones considering the 8% gap in JCT, which might even be 10% in the third quarter of this year.   Different from EU counties, Japan does not have a VAT identification number system to identify the type of customer-consumer or business customer. Eventhough two different quardrants (B2B supplies and B2C supplies) are defined and applied to cross-border suppliers through telecommunications channels, there is still no clear way to identify the status of the recipients. The Cabinet announced that they will not oversee the end user’s identity by credit card information and shipping address considering the privacy. In other words, it might still take a long time for the government to establish an effective approach to this issue.   If you are an online seller in digital service and want to enter Japanese market, you should keep a close eye on the latest announcement made by Cabinet.