What is Japanese consumption tax?
Consumption tax is a term for taxes imposed by the government on consumer spending behavior. The concept of Japan's consumption tax was first proposed in 1986 by then Japanese Prime Minister Yasuhiro Nakasone. However, due to the Liberal Democratic Party's electoral defeat at the time, this idea was quickly shelved. In 1986, Prime Minister Yasuhiro Nakasone reintroduced the concept under the name 'sales tax', but this did not gain traction either. In 1988, Prime Minister Noboru Takeshita proposed the concept of a consumption tax once again, and it was implemented the following year.
The introduction of the consumption tax came along with the abolition of the 'commodity tax'. The tax rate of the commodity tax depends on the type of goods, and not all goods are taxed. However, the 'consumption tax', except for land transactions and property rentals, applies a uniform tax rate to all goods and services.
- April 1, 1989: Implementation of the consumption tax law, tax rate 3%
- April 1, 1997: Tax rate increased to 5%
- April 1, 2014: Tax rate increased to 8%
- October 1, 2019: Tax rate increased to 10%
Tax refund steps:
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Become a tax refund member:
Complete the tax refund member certification and submit the tax refund documents.
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Tax Refund Application:
Apply for a tax refund and accumulate the total amount for packages within the tax refund period.
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Tax refund declaration:
We submit the total tax refund amount and documents to the Japan Tax Office.
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Consumption tax refund:
After the approval of the tax office, the consumption tax refund procedure is completed.
Apply for consumption tax
The service can apply for a refund not for the tariffs incurred in the destination country of the parcel. It's for the domestic consumption tax incurred during Japan online shopping and forwarding.