Japan VAT / Sales Tax
Detailed vat / sales tax rates and rules for Japan in 2026.
Japan levies a consumption tax (shohizei) at a standard rate of 10%, which functions similarly to a value-added tax. A reduced rate of 8% applies to qualifying food and non-alcoholic beverages (takeout and grocery items, but not restaurant dine-in meals) as well as newspaper subscriptions delivered at least twice per week. The consumption tax is comprised of a 7.8% national portion and a 2.2% local consumption tax portion (or 6.24% and 1.76% respectively for reduced-rate items).
Standard Rate
10%
Registration Threshold
Businesses with taxable sales of ¥10 million or less in the base period (generally two fiscal years prior) are exempt from consumption tax obligations. However, under the qualified invoice system (introduced October 2023), businesses must register as invoice-issuing enterprises to allow their customers to claim input tax credits.
Reduced Rates
How Japan VAT / Sales Tax compares
Japan’s standard VAT / sales tax rate of 10% is the 140th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.
