Japan VAT Rate 2026: 10% Standard Rate

How Much Is VAT in Japan?

The standard VAT rate in Japan is 10% in 2026. Other rates: 0% — Exports, international transport and certain services to non-residents. Locally the tax is called Consumption Tax (shohizei), including Local Consumption Tax. Standard VAT/GST rates worldwide range from around 5% to 27%.

How to calculate Japan VAT

To add 10% VAT to a net (tax-exclusive) price, multiply it by 1.1. To remove VAT from a gross (tax-inclusive) price, divide it by 1.1.

• Add VAT: JPY 100 net × 1.1 = JPY 110 gross (that is JPY 10 of VAT)
• Remove VAT: JPY 110 gross ÷ 1.1 = JPY 100 net (that is JPY 10 of VAT)

Use the Japan VAT calculator above for any amount, or compare Japan with every other country in our VAT rates by country table.

Current VAT Rates (2026)

Key VAT milestones

• 2026: Tax-free shopping for tourists switches to a refund-at-departure system from 1 November 2026
• 2025: Platform taxation of digital services by foreign businesses via large platforms from 1 April 2025
• 2023: Qualified Invoice System (invoice registration) introduced on 1 October 2023
• 2019: Standard rate raised to 10% with 8% reduced rate for food and newspapers on 1 October 2019
• 2014: Rate raised from 5% to 8%
• 1997: Rate raised from 3% to 5% (including local consumption tax)
• 1989: Consumption tax introduced at 3%

Is the VAT rate the same everywhere in Japan?

Yes, the 10% and 8% rates apply nationwide, including Okinawa; the rate includes a 2.2% (or 1.76%) local consumption tax collected together with the national tax.

Good to know

The 8% food rate depends on how food is consumed: takeaway and delivered food is 8%, but eating in at a restaurant, food court or convenience store seating is 10%.

The government plans to cut consumption tax on food bought in stores from 8% to 1% for two years from April 2027; the Cabinet approved an outline in September 2026 and bills are expected in the autumn Diet session.

Transitional relief for small businesses that registered for invoicing (the 20% special rule allowing tax payable at 20% of output tax) applies to periods ending by 30 September 2026.

Zero-rated supplies (0%)

VAT is charged at 0%, but the seller can still recover input VAT on related costs:

• Exports of goods
• International transport and communications
• Certain services provided to non-residents
• Sales to tourists at tax-free shops (via refund from November 2026)

VAT-exempt supplies

No VAT is charged, and the seller generally cannot recover input VAT on related costs:

• Sales and leases of land
• Securities and payment instruments
• Interest and insurance premiums
• Medical care under public health insurance
• Social welfare and nursing care services
• School tuition and textbooks
• Residential rent
• Postage stamps and revenue stamps

Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with National Tax Agency (NTA) before relying on them.

Cross-border rules

Digital services and e-commerce: Foreign businesses supplying B2C digital services to Japan are liable for 10% consumption tax under the normal registration threshold. Since 1 April 2025, designated platforms with over JPY 5 billion of such sales are liable for consumption tax on apps and digital services sold through them by foreign businesses.

Tourist VAT refunds: Yes: foreign visitors can recover consumption tax on purchases of at least JPY 5,000 (excluding tax) per store per day; from 1 November 2026 tax is paid at the till and refunded after customs confirms export at departure.

For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.

Nearby Countries

What is the current VAT rate in Japan?

The standard VAT rate in Japan is 10% in 2026. Other rates in force: 8% (6.24% national + 1.76% local) (reduced rate), 0% (zero rate (export exemption)). See the rates table above for exactly what each rate covers.

How do I calculate VAT in Japan?

To add 10% VAT, multiply the net price by 1.1. To remove it from a VAT-inclusive price, divide by 1.1; the difference is the VAT. The calculator at the top of this page does both.

Is Japan cutting the consumption tax on food?

The government plans to lower the rate on food bought in stores from 8% to 1% for two years from April 2027. The Cabinet approved an outline in September 2026; legislation still needs to pass the Diet, and restaurant meals would stay at 10%.

How does tax-free shopping in Japan work from November 2026?

From 1 November 2026 visitors pay the full price including tax, and the tax is refunded after customs confirms the goods are leaving Japan. The JPY 5,000 minimum remains and the split between general goods and consumables is abolished.

Why is food 8% or 10% in Japan?

Food and non-alcoholic drinks for takeaway or delivery are taxed at the reduced 8% rate, but eating in at a restaurant or using in-store seating is taxed at 10%. Alcohol is always 10%.

Who needs to register for VAT in Japan?

Registration threshold: Taxable sales above JPY 10 million in the base period (two years prior), or in the first six months of the prior year; businesses issuing qualified invoices must register regardless. Foreign businesses: Foreign businesses follow the same threshold rules; B2B digital services are reverse-charged, while B2C digital services make the foreign supplier (or designated platform) liable.

Where these figures come from

• National Tax Agency - Consumption tax
• Japan National Tourism Organization - New tax-free shopping system
• The Japan Times - Cabinet to approve outline of consumption tax reduction for food
• PwC Worldwide Tax Summaries - Japan