Japan’s new consumption tax – Info and Vocabulary – Illustrated Guide

Posted by on October 15, 2019 – Japanese Study

Sales tax has changed in Japan! Due to a need to prepare for the Japan’s future (elderly care, pensions) – consumption tax has increased to 10 percent on October 1st, 2019 as part of new legislation.

Thankfully – it is not as straightforward as a simple 10% increase.  Some items and services are still taxed at 8%

To alleviate the impact of the increase in consumption tax, the government has implemented a two-tier system. Foods, non-alcoholic beverages, delivery foods and newspapers (subscription newspapers published twice or more a week) remain at an 8% rate.But what about if you are a tourist?

For Tourists:

Foreign visitors staying in Japan for less than 6 months are eligible for tax-free shopping when making purchases of over 5000 yen.  Many stores will be able to provide a Tax free shopping receipt verification – and you can claim this directly or at the tax free counter at the airport.

Japan new consumption tax hike to 10%

Japan’s new consumption tax

Confused about the tax increase?

We have included some useful Japanese vocabulary related to consumption taxes below!

Japanese vocabulary related to Japanese sales taxes

消費税ーShōhizeiーConsumption tax
増税ーZōzei-Tax increase
税込ーZeikomiーTax included
税抜ーZeinukiーTax excluded
飲食料品 – Inshokuryouhin – Food and beverages
テイクアウト- Teikuauto – Take out
新聞 – Shinbun – Newspaper
出前 – Demae – Delivery
宅配 – Takuhai – Delivery
酒類 – Shurui – Alcoholic drinks
ケータリング- Kētaringu – Catering
外食 – Gaishoku- Eating out
店内- Ten’nai – Eat-in / Sitdown
医療品 – Iryōhin – Medical supplies
薬 – Kusuri – Medicine
日用品 – Nichiyōhin – Daily necessities
家電-Kaden – Home appliance

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