We are Murata Sogo Tax & Accounting Office, specializing in inheritance and international taxation, with an office in Miyakojima-ku, Osaka.

This tax article is about Gemini, a generative AI service provided by Google.
Gemini has a web app version for individuals and a Google Workspace add-on version for businesses. In addition, the personal version has a free version as well as a paid plan, Gemini Advanced.

１．What is Gemini?

Gemini is a highly functional generative AI model released by Google in December 2023 that, like Chat GPT, allows users to easily direct advanced tasks using text, images, voice, and video in a chat format. The integration into Gemini and its evolution, including the release of a top-of-the-line version, represents a new advancement in the generative AI industry.

Gemini will be free of charge as of May 2025; if you have a Google account, you can use it freely with unlimited frequency by registering for free. If you update to the higher version, Gemini Advanced, you can take advantage of useful features for 2,900 yen per month.

2. Treatment of consumption tax in the case of payment for the paid version of Gemini

(1) Is it a taxable purchase?

Taxable purchases must be (1) made by a business entity, (2) in Japan, (3) for consideration, and (4) a transfer of assets.

(i) Must fall under the category of business operator

Gemini is operated by Google Cloud Japan, LLC, a Japanese corporation. Therefore, it falls under the category of a business entity.

(ii) Must be conducted in Japan

Since Google Cloud Japan, LLC is a Japanese corporation, it falls under the category of providing services in Japan.

(iii) Performed for consideration

The service is provided for a monthly fee of 2,900 yen.

(iv) Transfer of assets, etc.

Since Gemini Advanced is providing services, it falls under the category of transfer of assets, etc., and falls under the category of provision of services.

Therefore, the purchase falls under (1) to (4) above and is a taxable purchase.

(2) How about the invoice registration status of Google Cloud Japan, LLC?

If Google Cloud Japan, LLC is not an invoice-registered business, tax credits for purchases will be limited (80% from October 2023 to October 2008, 50% from October 2008 to October 2029, and not allowed after October 2029).

In this regard, Google Cloud Japan, LLC is an invoice registered business.
https://www.invoice-kohyo.nta.go.jp/regno-search/detail?selRegNo=6010003022051

Therefore, the full amount of the Gemini Advanced usage fee can be deducted as a purchase tax credit.

In this article, we have looked at the treatment of consumption tax when using the paid version of Google Gemini. If you have any questions regarding this or similar questions, please contact us through our contact form.