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Introduction of multiple consumption tax rates – Special considerations for food and beverage retailers

Japan Inbound Tax & Legal Newsletter February 2019, No. 36

On 1 October 2019, Japan will introduce a multiple rate system for Japanese consumption tax (JCT) when the standard JCT rate will increase from the current 8% to 10%.

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Under the new rate structure, an 8% rate (i.e. the reduced rate) will continue to apply to the sale of food and beverages, as well as print newspaper subscriptions. In addition, a rate-classified invoice system will be implemented for the period 1 October 2019 to 30 September 2023 as a transitional measure until a qualified invoice system comes into operation on 1 October 2023. This article outlines some key considerations that may impact businesses operating in Japan, with a special focus on retailers of food and beverages.

This newsletter explains the following topics;

1. Timeline
2. Key considerations 
3. Other impacts
 
(170KB, PDF)

* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.

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