As of now, Japan has a standard VAT rate of 10%. However, there’s a reduced rate of 8% that applies to certain items, like food and non-alcoholic beverages, as well as newspaper subscriptions.
Businesses in Japan are required to charge VAT on most goods and services they provide. The collected VAT must then be paid to the tax authorities after deducting any VAT the business itself has paid on its purchases. Staying aware of the applicable rates and their specific applications is crucial for pricing products and maintaining compliance.
The tax information provided here is based on legislation as it stands on the date of publication and may not reflect subsequent changes. We advise clients to seek tailored professional advice before making any decisions based on this information.