We've prepared a comprehensive FAQ to help you better understand the introduction of Japanese Consumption Tax (JCT) on OpenAI services. It covers key details about the changes, how they affect your invoices, and answers to common questions from our customers.
Why is OpenAI introducing Japanese Consumption Tax (JCT)?
In compliance with Japan’s Consumption Tax Act, OpenAI LLC will be required to charge and collect Japanese Consumption Tax (JCT) at 10% on your invoice for applicable services.
When will this go into effect?
This change took effect on January 1, 2025.
I don’t see JCT on a previous invoice. Will I need to pay JCT for previous charges?
No, JCT will only apply to charges incurred starting January 1, 2025. Previous invoices will not be updated to include JCT.
Why am I being charged JCT?
In Japan, we will charge JCT to anyone who purchases services directly from OpenAI. For any business customers that purchase our services under a negotiated agreement, such as an Enterprise contract, no JCT will be charged as the reverse charge mechanism generally applies. This means that the Japanese business receiving the service is responsible for self-assessment, reporting, and remitting the tax. If you believe this classification does not reflect your account status, please contact support@openai.com.
Why am I being charged JCT on a USD-denominated price?
Starting January 1, 2025, OpenAI LLC, a US-based entity, will collect Japanese consumption tax for customers in Japan. Since these services are considered a cross-border supply of digital services, OpenAI can continue displaying prices in USD.
Qualified Invoices provided to customers in Japan will show the applicable tax amount in Japanese Yen.
Does collecting consumption tax mean that you will be able to issue invoices as a Qualified Invoice Issuer?
Yes, OpenAI LLC will provide customers with Qualified Invoices as a Qualified Invoice issuer in Japan.
What is OpenAI’s QII registration number?
OpenAI’s QII registration number is T4700150127989. This number is included on invoices issued for applicable transactions, in compliance with Japan's Qualified Invoice System.