Japanse Features Society and Customs

Tricky Japanese Consumption Taxes

Probably everyone knows what percentage of consumption taxes they pay in their  own country.  What about Japan?  If you are planning to come to Japan soon or probably around when the 2020 Summer Olympics is held in Tokyo, you should know about them.  

Photo by Skitterphoto used under CC

The Japanese consumption tax is a little tricky.  As of October 1, 2019, the tax will be raised from 8 percent to 10 percent.  Unlike New York, U.S., where no tax is imposed on clothes and shoes (whose prices are under $110), even daily necessities, like clothes, will be 10 percent taxed in Japan starting October 1.  

 As long as you, as international tourists, buy gifts at a certified store, which displays the sign "Duty Free Shop" (Japanese: 免税店) at or near its entrance, you can buy gifts duty-free, as you do at duty-free shops at the airport.  However, the purchase at general, non-certified stores, requires the consumption tax.  

This is also the case where you buy some food or eat at a restaurant.  The tricky part of this new consumption tax (10 percent) is that you only pay 8 percent or the food you buy at stores (such as grocery and convenience stores).  However, for alcoholic drinks, you have to pay 10 percent.  

Also, when you order take-out food at a restaurant, again only 8 percent is imposed.  However, when you dine in a restaurant, you have to pay 10 percent.  Even when you place a take-out order and change your mind and dine inside, you still have to pay 10 percent.  

Yes, just 2 percent difference!!  If you come to Japan and experience its culture at all, by spending money on air flights and accommodations, you might not mind this 2 percent difference.  However, it is worth knowing a little trick to save some money, right?  You could buy extra gifts for someone special.   Enjoy your trip in Japan!! 

If you are interested in trips, trip advice, and others, please check out our trip posts at https://tuneinnagoyatrips.blogspot.com