Japan VAT Rate 2026: 10% Standard Rate

How Much Is VAT in Japan?

The standard VAT rate in Japan is 10% in 2026, plus reduced rate of 8% on certain goods and services. It applies to most goods and services sold in Japan. 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

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 2019: Consumption tax raised to 10%
• 2014: Raised to 8%
• 1989: Consumption tax introduced at 3%

Economic Impact

VAT contributes approximately 20-30% to Japan's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Asia-Pacific region.

Zero-Rated Items

The following items are zero-rated for VAT in Japan:

• Exports of goods and services
• International transportation
• Some basic food items
• Children's clothing
• Books and newspapers
• Prescription medications

VAT Exempt Items

The following are exempt from VAT in Japan (no VAT charged, no input VAT recovery):

• Financial services
• Insurance services
• Healthcare and medical services
• Education and training
• Postal services
• Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in Japan:

• 8% rate: Food and beverages (excluding dining out) and newspapers

Japan requires consumption tax registration once taxable sales in the base period (two years prior) exceed JPY 10 million; the qualified-invoice system also lets smaller businesses register voluntarily. Always confirm current thresholds and deadlines with the National Tax Agency (NTA), as they are reviewed periodically.

VAT Registration

• Registration Threshold: JPY 10,000,000 (base period)
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Annual return, with interim payments for larger taxpayers
• Filing Deadline: End of month following period
• Payment Methods: Bank transfer, online payment
• Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

• Intra-EU Trade: Not applicable (non-EU country)
• Imports: VAT payable at point of entry
• Exports: Generally zero-rated
• Digital Services: Special rules may apply

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in Japan?

The standard VAT rate in Japan is 10% as of 2026. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in Japan?

To add VAT: multiply the net amount by 10%. To remove VAT from a gross amount: divide by 1.10. Use our calculator above for instant results.

Who needs to register for VAT in Japan?

Japan requires consumption tax registration once taxable sales in the base period (two years prior) exceed JPY 10 million; the qualified-invoice system also lets smaller businesses register voluntarily.

Can I reclaim VAT in Japan?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country — see our guide to VAT refunds for tourists and non-resident businesses.