VAT rates in Japan (2026)
Last reviewed: 7 November 2026
In short: The standard consumption tax rate is 10% and the reduced rate is 8%, for food and drink (not alcohol or dining out) and some newspapers. Small businesses with up to 10 million yen of taxable sales in the base period are exempt. The National Tax Agency administers the tax.
| Rule | What applies |
|---|---|
| Standard VAT rateValue added tax | The standard consumption tax rate is 10%, of which 2.2 percentage points are local consumption tax. [1] |
| Reduced VAT ratesValue added tax | A reduced rate of 8% (of which 1.76 percentage points are local consumption tax) applies to food and drink other than alcohol and dining out, and to newspapers issued twice a week or more by subscription. [2] |
| VAT on foodValue added tax | Food and drink are taxed at the reduced rate of 8%, excluding alcoholic drink and dining out, which are taxed at the standard 10%. [2] |
| VAT registration thresholdValue added tax | A business with taxable sales of 10 million yen or less in the base period is exempt from consumption tax; above 10 million yen it is a taxable business (the specified period can also bring it in). [2] |
| Tax authorityValue added tax | The National Tax Agency (Kokuzeicho) publishes and administers the consumption tax rules. [2] |
Sources
- 国税庁 (National Tax Agency): No.6101 消費税の基本的なしくみ (consulted 7 November 2026) · all sources
- National Tax Agency: Basic knowledge (Consumption Tax) (consulted 7 November 2026) · all sources
Related pages
General information, not legal advice. Rules change: check the official source before you fly or ride.