Japan raised its Consumption Tax rate from 8% to 10% on October 1, 2019
The Consumption Tax rise is the second part of a two-stage increase; the first, tax raise was from 5% to 8% in 2014. The first raise tipped the country into a recession and as a result, the second rise was postponed twice. To prevent another collapse in consumer spending in Japan, Parliament has this last month approved a consumer and retail stimulus in the range of USD 18 billion. The stimulus includes retail vouchers for low-income shoppers/families. In addition, a reduced 8% Consumption Tax rate for basic foodstuffs was introduced. If you are doing business with Japan and have questions or concerns, please contact us. We are happy to assist and answer all your international VAT questions.
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