Japan — Consumption tax
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Japan's general VAT rate is 8%, with other rates including NA that can apply to certain transactions. The Consumption tax is administered by the National Tax Agency Japan (http://www.nta.go.jp) in Tokyo.
Japan is currently planning to raise the Consumption tax rate to 10% in 2019.
Japan's consumption tax is called the Consumption tax, locally known as Shouhizei, which was introduced in April 1989.
Japan Consumption tax rates for 2023
- 8% (expected to increase to 10% effective from 1 April 2017)
- Exempt (with input tax credit) and non-taxable (without input tax credit)
Japan Consumption tax return periods
Businesses in Japan that are required to collect tax from consumers must file regular tax returns with the National Tax Agency Japan in Tokyo. Japan's Consumption tax return periods are:
Monthly, quarterly, biannually and annually
Japan Consumption tax number format
Businesses in Japan that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the National Tax Agency Japan, and will follow a certain format. The Consumption tax number format is Not applicable.
Japan Consumption tax Thresholds
These are the revenue thresholds at which businesses in Japan are required to start collecting and remitting tax.
- JPY10 million of taxable transactions
Recovery of consumption tax by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Japan are required to collect taxes from the consumer.
Japan VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Japan VAT refund program, more info can be obtained from the National Tax Agency Japan.
Japan Tax Sources & Citations
- EN: Japan Value Added Tax
- RU: НДС
- CN: 增值税
- Japan National Tax Agency Japan (1)
- Ernst & Young global VAT tax study, Japan (updated 2023)
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