VATupdate

Share this post on

Japan Approves Temporary Food Tax Cut, New Refunds, and Shopping Tax Reform

  • Japan will cut the consumption tax on food (excluding alcohol and restaurant meals) from 8% to 1% for two years starting in April 2027.
  • Low
  • and middle-income households will get cash benefits equal to the remaining 1%, making food effectively tax-free for them.
  • The food tax will return to 8% in April 2029, alongside a new income-linked benefit and refundable tax credit for lower-income households.
  • Japan will change tax-free shopping rules on November 1, 2026, requiring foreign visitors to pay tax at purchase and claim refunds when leaving the country.
  • New 2026 rules will also add JCT compliance and output tax obligations for overseas e-commerce platforms selling low-value goods into Japan.

Source: jnzbc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



Sponsors:

Pincvision
VAT IT

Advertisements:

  • iopole
  • RTC