VATLive > Blog > Consumption Tax > Japan 8% reduced Consumption Tax rate

Japan 8% reduced Consumption Tax rate

  • Jan 23, 2019 | Richard Asquith

Japan 8% reduced Consumption Tax rate

Japan is scheduled to complete a two-stage doubling of its Consumption Tax rate to 10% on 1 October 2019. The first part of the rise, from 5% to today’s 8% was enacted on 1 April 2014.

The Ministry of Finance has now confirmed in the 2019 budget that the rise will be accompanied by the introduction of a 8% reduced Consumption Tax rate. This will be applied to basic foodstuffs.  To further help the less well off in society there will be other welfare payment increases.


Latest Japanese news


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice


Sign-up to VAT Voice, Avalara’s monthly round-up about VAT and legislation updates to help you stay ahead of the curve.