Only domestic transactions are subject to JCT, and RecruitiFi is providing services from outside of Japan, so there is no JCT due on hires made through RecruitiFi.


The National Tax Agency of Japan has reviewed our terms and business model and has provided the following guidance.

According to Japanese Consumption Tax (JCT) Law Article 4, only domestic transactions are subject to JCT.  Services are only considered domestic transactions if they are provided in Japan according to Article 4.3.2.

RecruitiFi has no physical presence in Japan, and thus is not providing services subject to JCT

Does it matter where the agency is from?

No. Employers are not directly contracted with any Agencies. Employers are contracted with RecruitiFi and pay RecruitiFi for the services.  Even if an Employer and an Agency had a prior relationship, the RecruitiFi Terms supersede their previous contracts for the duration of their engagement on RecruitiFi.

The Agencies are consultants who are contracted with RecruitiFi. Where the agency is located does not factor into the tax situation.

Are RecruitiFi's services considered "Electronic Services"? 

No. Electronic services represent intangible digital content such as ebooks, digital music, and digital movies as defined in Article 4.3.3.

RecruitiFi provides a professional service of recruiting, where digital communications are ancillary to the main service, rather than the whole of the services as in the download of a digital movie or the other examples above.

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