Can anyone confirm whether cancellation fee should not include japan consumption tax?
Can you share the relevant National Tax Agency website link that help to prove cancellation fee does not include japan consumption tax?
Below is the definition of cancellation fee for your reference. It relates to the hotel industry.
Fee income received from transient guests and groups that cancel their reservations for guestrooms, food and beverage, and other services after a contracted or cutoff date is included in this line item. “No-show” revenue from individual guests who do not show for a guaranteed reservation and “early departure fees” from the guests who check out earlier than the scheduled departure date are included in Other Revenue in the Rooms department.
For my next question, would the tax office accept that cancellation fee does not include consumption tax if the amount is significant?
by BitterAcanthisitta79