Japan calls VAT “Consumption Tax”. This is a simple Japanese consumption-tax calculator that can also be used as a reverse calculator to calculate tax-inclusive and tax-exclusive prices.
Select the standard (10%) or reduced (8%) Consumption Tax rate, then enter any figure you know:
- Consumption Tax value – price including Consumption Tax and price excluding Consumption Tax will be calculated
- price excluding tax – Consumption Tax value and price excluding Consumption Tax will be calculated
- price excluding Consumption Tax – Consumption Tax value and price including Consumption Tax will be calculated
What is the Consumption Tax rate in Japan?
The standard Consumption Tax rate in Japan is 10%. A reduced rate of 8% applies to qualifying food, non-alcoholic drinks, and subscribed newspapers.
Consumption Tax consists of two parts – national tax and local tax:
- Standard tax rate: 10% = 7.8% national tax + 2.2% local tax
- Reduced tax rate: 8% = 6.24% national tax + 1.76% local tax
Reduced Consumption Tax in Japan
Reduced Consumption Tax rate is applied for:
- Supplies of food and drinks, excluding alcoholic beverages and dining out
- Subscriptions to newspapers (limited to newspapers that are issued at least twice a week and feature information on general topics such as politics, economics, society and culture)
CT exemptions
- Exports of goods
- Exports of services
- International transportation of passengers and cargo
- Sales in export shops
- Supplies to foreign embassies and legations situated in Japan
Consumption tax in Japanese
In Japanese, Consumption Tax is called shōhizei (消費税).
Tax-free shopping in Japan
Until 31 October 2026, eligible visitors generally need same-store, same-day purchases of at least ¥5,000 before tax. Consumables have additional limits. From 1 November 2026, Japan will move to a refund method.
Japanese Consumption Tax history
| Year | Standard rate | Reduced rate |
|---|---|---|
| 1989, Apr 1 | 3% | — |
| 1997, Apr 1 | 5% | — |
| 2014, Apr 1 | 8% | — |
| 2019, Oct 1 | 10% | 8% |
Data source: https://www.mof.go.jp/english/policy/tax_policy/tax_system/consumption/index.html