A Simple Guide to Japan's Tax Hike from 8% to 10%: What Will Be Affected and What Are the Exceptions?

On October 1st, 2019, the consumption tax rate in Japan increased from 8% to 10%. The Japanese government has decided to enforce this in order to secure capital for social security in the future, however, opinions have been raised about the complicated details of the tax hike. Part of the confusion arises from the introduction of “reduced tax rates”, which will be applied for certain products. This means that not everything will be affected by the new tax rate. The food service industry in particular has especially detailed categorizations to determine exactly what will be affected. So, what does this all mean for tourists and foreigners living in Japan? This article will outline the details of the tax hike and explain how it will affect, or will not affect, goods and services from October.

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The information in this article is accurate at the time of publication.

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