Japan relaxes Consumption Tax filings for COVID-19
- Apr 16, 2020 | Richard Asquith
16 April update - businesses which have suffered a larger than 50% drop in revenues since 1 February 2020 as a result of the coronavirus crisis may apply for exempt Consumption Tax status.
10 April update - as part of wide-ranging tax reliefs businesses are to be offered Consumption Tax payment delays without penalties or interest. Businesses must show at least 20% decline in revenues since 1 February to qualify for a 1-year postponement of Consumption Tax, corporation and income taxes.
23 March - Japan is not going ahead with a halving of the main Consumption Tax rate to 5% to help businesses struggling with the Covid-19 pandemic. Instead, it is opting for filing and payment delays.
Japan has already delayed filing deadlines and payments for individuals by two months until May. Japanese Consumption Tax was raised from 8% to 10% in October 2019 to help fund the growing social costs of and aging population.
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