Question 1

What products are subject to the 8% reduced tax rate in Japan?

Accepted Answer

The 8% reduced tax rate applies to food and beverages (excluding alcoholic beverages) for takeout, delivery, and newspapers with regular subscription contracts (published twice or more per week). Eating in restaurants or eat-in spaces is subject to the 10% standard rate.

Question 2

Why are takeout and eat-in taxed at different rates?

Accepted Answer

Due to the reduced tax rate system introduced during the consumption tax increase in October 2019, takeout food items are subject to the 8% reduced rate, while eating in (eat-in) is considered dining service and subject to the 10% standard rate.

Question 3

How should consumption tax fractions be rounded?

Accepted Answer

According to the National Tax Agency (NTA) standards, consumption tax amounts less than 1 yen must be rounded down when filing taxes. Under the invoice system, rounding (round down, round up, or round to nearest) must be done once per tax rate for each invoice. This calculator uses NTA-compliant rounding down.

Question 4

Do convenience stores charge different tax rates for takeout and eat-in?

Accepted Answer

Yes, they do. Food items purchased at convenience stores for takeout are subject to the 8% reduced rate, while eating in the eat-in space is subject to the 10% standard rate. You must declare your choice at the register when purchasing.

Japan Tax Calc

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