VATLive > Blog > VAT > Japan suffers credit downgrade following VAT rise delay - Avalara

Japan suffers credit downgrade following VAT rise delay

  • VAT
  • 06 December 2014 | Richard Asquith

Japan suffers credit downgrade following VAT rise delay

One of the three major credit rating agencies, Moody’s, has downgraded Japan’s credit rating following the decision to delay the Japanese Consumption Tax rise to 10% in 2015.

The rise had been planned to help the country manage its large soverign debt problems, and meet the costs of an aging population. However, it was delayed last week following a slump in growth in the second and third quarters of 2014. This was partially caused by the first leg of the VAT / Consumption Tax rise from 5% to 8% on 1 April 2014.

Japan’s new credit rating has changed, but Moody’s predicts a stable 12-18 months.  Read more about Japanese Consumption Tax here.


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.