JP 2028 Consumption Tax

JP 2028 shouhizei: 10% standard, 8% reduced (food/take-away/newspapers). Invoice system (qualified invoices) mandatory since Oct 2023 for input tax credit.

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Japan 2028 consumption tax (shouhizei): 10% standard + 8% reduced rate on groceries, take-away food, non-alcohol beverages, newspapers (subscriptions ≥2x/week). Restaurant dine-in: 10%. Take-away: 8%. Invoice system mandatory since Oct 1, 2023 — registered businesses must issue qualified invoices for buyer to claim input tax credit.

Invoice System Mandatory

Pre-Oct 2023: businesses could claim input credit without invoice. Post-Oct 2023: qualified invoices (with registration number) required. Small businesses below ¥10M turnover face decision — register for invoicing (and become taxable) or stay exempt (and lose ability to issue tax-creditable invoices to buyers). Big squeeze on small contractors.

Take-Away vs Dine-In 8%/10%

Famous Japanese tax quirk: same food, different tax. Dine-in (restaurant table) 10%. Take-away (same place, different setting) 8%. Bento boxes, conbini food, McDonald's take-away all 8%. Vending machines 8%. Often confusion at point of sale.

Future Rate Increases

Government periodically discusses raising standard rate to 15-20% to fund aging population. Strong political resistance. Last increase: 8%→10% Oct 2019, postponed twice from original 2015 plan. 2028 standard likely still 10%, but watch budget announcements.

Last updated May 2026. Sources: NTA Japan.