Taxes

Japan — Tax: Consumption Tax (VAT)

Japan's consumption tax has a 10% standard rate and an 8% reduced rate, both in force since 1 October 2019.

VerifiedGovernment / official sourceNational Tax Agency of Japan — Consumption Tax basic knowledgeLast reviewed: 2026-10-23

Key facts

  • Standard rate 10% (7.8% national plus local consumption tax); reduced rate 8% (6.24% national plus local).
  • The 8% rate covers food and drink excluding alcohol and dining out, and newspapers issued at least twice a week under subscription.
  • A mixed product takes the reduced rate as a whole only if its tax-exclusive price is JPY 10,000 or less and food makes up at least two-thirds of the price.
  • Because two rates apply, businesses must record transactions by rate, and invoices must show the rate applying to each item.

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