Return to site
Return to site

Consumption Tax Rate will increase by 2% on October 1.

The rate of Japanese consumption tax is 8% as of now.

· Consumption Tax

The rate of Japanese consumption tax is currently 8%. All goods and services are taxed at 8%, except for tax-free ones which are a transfer of land, securities and so on. However, the consumption tax rate will increase by 2% on October 1 and reduced tax rate system will also be introduced at once. The system is that the consumption tax rate of foods and newspapers will decrease by 2% on October 1. The items that are necessary for our daily life will not be taxed at 10% but foods served in restaurants will be taxed at 10%, because the price of foods in restaurants includes services by staff.

For example when you buy fruits in a supermarket after October 1, the consumption tax rate is 8%. When you eat ramen in a restaurant after October 1, the consumption tax rate is 10%. These examples are easy.

For another example when you buy a burger in McDonald's and take out a burger after October 1, the consumption tax rate is 8%. When you buy a burger in McDonald's and eat it their stores and premises after October 1, the consumption tax rate is 10% because it includes the services by their staff. These examples are a little difficult.

That is why I recommend choosing take-out rather than dine-in in McDonald's when you travel in Japan after October 1.

Previous
Notification of Commencement for your business (Individuals)
Next
Japanese Government to Support Foreign Students Who Want...
 Return to site
Powered by Strikingly
All Posts
×

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!

OKSubscriptions powered by Strikingly