Please be aware that this site is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.
Japan’s Value-Added Tax (VAT), also known as the Japanese Consumption Tax (JCT), applies to most goods and services. The tax structure includes standard and reduced rates.
VAT rates in Japan
| Rate | Type | Examples of Goods & Services |
|---|---|---|
| 10% | Standard | Most taxable goods and services |
| 8% | Reduced | Food and beverages (excluding restaurant meals and alcohol), newspapers |
| 0% | Zero-rated | Exports |
For more details on VAT regulations, visit the National Tax Agency website.
Qualified invoice system
Since 1 October 2023, input JCT is only fully deductible when the buyer holds a qualified invoice (適格請求書) from a registered issuer. Purchases from non-registered suppliers are partly deductible under a transitional measure.
| Period | Deductible share |
|---|---|
| 1 Oct 2023 to 30 Sep 2026 | 80% |
| 1 Oct 2026 to 30 Sep 2028 | 70% |
| 1 Oct 2028 to 30 Sep 2030 | 50% |
| 1 Oct 2030 to 30 Sep 2031 | 30% |
| From 1 Oct 2031 | 0% |
No invoice is needed for public transport and vending machine purchases below ¥30,000, for business travel allowances paid to employees, or, until 30 September 2029, for purchases below ¥10,000 by smaller businesses. Bookkeeping alone is sufficient.
For more details, visit the National Tax Agency website.
Last changed 2026-09-30