Japan Reverse Consumption Tax Calculator.

Japan's Consumption Tax (消費税, Shōhizei) was introduced in April 1989 at 3% and has been gradually increased over the years: to 5% in 1997, 8% in 2014, and the current 10% in October 2019. The rate increases were each met with significant political debate and had notable impacts on consumer spending in Japan.

Japan's consumption tax has two rates: the standard 10% rate for most goods and services, and a reduced 8% rate introduced in 2019 specifically for food and beverages (excluding alcohol and restaurant meals) and subscription newspaper deliveries. This reduced rate for food was a political compromise to reduce the regressive impact of the tax increase from 8% to 10%.

A particularly Japanese feature of the consumption tax system is the receipt-based "qualified invoice" requirement under the Invoice System (インボイス制度) introduced in October 2023. Under this system, only consumption tax that appears on invoices from registered taxable businesses can be credited by other businesses. This has forced many small businesses (including individual sellers and freelancers) who were previously exempt from filing consumption tax returns to register and issue qualified invoices or risk losing business from VAT-registered clients who need creditable invoices.

Japan applies its consumption tax to a broad base of goods and services. Digital services provided by foreign businesses (streaming, app stores, online advertising) are also subject to consumption tax, with non-resident providers required to register and remit the tax. Japan's National Tax Agency (NTA) administers the tax.

For tourists visiting Japan, the Japan Tax-Free Shop program allows foreign visitors to purchase goods tax-free at over 50,000 participating retailers without paying the 10% consumption tax at the point of sale. Visitors must present their passport and meet the minimum purchase requirement (generally ¥5,000 per store per day for consumables). This is different from most other countries' tourist refund schemes — Japan gives the refund immediately at the point of sale rather than at departure.