Consumption/VAT/Sales Tax in Japan

Overview by
Nature of the Tax
Japanese Consumption Tax (JCT).
Standard Rate
National consumption tax :4%
Calculated on the total amount of sales (excluding sales not subject to tax) and once the total amount of purchases subject to tax has been deducted.

Local consumption tax : 1%
Calculated on the total amount of consumption tax due.
Reduced Tax Rate
Exclusion From Taxation
Land transfer or lease, Housing lease, Finance or Insurance, Medical care, Education, Welfare, etc.
Export transactions, international communication, international transport are also considered as tax-exempt sales.
Method of Calculation, Declaration and Settlement
Under 10 million JPY per year the payment of consumption tax is not required.
You can download a document explaining the method of calculation and the means of declaration and payment. A simplified declaration is possible when the total amount of sales subject to tax is less than 50 million JPY. The consumption tax of a financial year is payable at the latest during April of the year n+2. It can be settled by automatic transfer.
Other Consumption Taxes
Other consumption taxes are levied at the national level and the local level: liquor tax, tobacco tax, gasoline tax, aviation fuel tax, liquefied petroleum gas tax, petroleum tax, motor vehicle tax, etc.

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