VATLive > Blog > Japan > Japan bitcoin Consumption Tax - Avalara

Japan bitcoin Consumption Tax

  • Oct 11, 2016 | Richard Asquith

Japan bitcoin Consumption Tax

The Japanese Ministry of Finance is expected to shortly announce that the sale of bitcoin and other virtual currencies will be exempted from 8% Consumption Tax.

The change in fiscal policy is based on a reclassification of bitcoin as a payment method by the Fund Settlement Law.

Japan is one of last major economies to levy a consumption tax on bitcoin sales. The tax hampers the industry growth as it compounds costs with taxes on each supply in the chain.  Australia still levies 10% Goods & Services Tax on bitcoin trades. The EU dropped removed VAT on sales across all 28 member states last year.

Latest Japanese news
Japan confirms 2019 Consumption Tax hike
October 14, 2018

Japan is to confirm this week its plan to complete the second rise in its Consumption Tax, from 8% to 10% in October 2019.  The...
Japan on track for 10% Consumption Tax 2019
August 13, 2018

Japan’s latest growth rates mean the planned rise in its Consumption Tax from 8% to 10% in October 2019 will still go ahead. The rise...
Japan 10% Consumption Tax Oct 2019
April 15, 2018

Japan is continuing to prepare for a rise in its Consumption Tax from 8% to 10% on 1 October 2019. The planned rise has already been...

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 is part of the European leadership team which this year won International Tax Review's 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.