Certain products and services are completely exempt from VAT in Japan. These exemptions generally apply to essential and socially beneficial sectors, including:
- Medical Services:
Medical treatments and healthcare services provided by licensed medical professionals are exempt from VAT. - Educational Services:
Tuition and related educational services provided by schools, universities, and other accredited educational institutions are VAT-exempt. - Financial Services:
Certain financial transactions, such as interest on loans, insurance services, and other specific financial services, are exempt from VAT. - Welfare Services:
Social welfare services provided by designated welfare facilities, including elderly care and disability support, are also VAT-exempt.
Understanding these exemptions is crucial for businesses operating in these sectors to ensure compliance and proper accounting. Consulting a Japanese tax professional can provide detailed guidance on VAT exemptions and help navigate the complexities of the Japanese tax system.
The 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.