Consumption Tax
The Consumption Tax. rate is 8%. The breakdown is National Consumption Tax rate of 6.3% and Local Consumption Tax of 1.7 % ( The 17/63 of the amount of National Consumption Tax).
* The government will raise the consumption tax to 10 % from the current 8 % as scheduled in October 2019 .
* The government will raise the consumption tax to 10 % from the current 8 % as scheduled in October 2019 .
Taxable Sales
Consumption tax is levied on “Taxable Sales”. “Taxable sales” mean sales that satisfy all of the following four conditions.
(1) Effectuated in Japan
(2) Effectuated by a business for its business purposes
(3) Effectuated for a compensation
(4) Effectuated by the transfer or lease of assets or by the provision of services
(Referred to as “transfer of assets etc.”)
For example, machinery rental fees and proceeds from the sale of machinery, buildings and other business assets are included in taxable sales in addition to such things as proceeds from sales of products, contract work and services.
(1) Effectuated in Japan
(2) Effectuated by a business for its business purposes
(3) Effectuated for a compensation
(4) Effectuated by the transfer or lease of assets or by the provision of services
(Referred to as “transfer of assets etc.”)
For example, machinery rental fees and proceeds from the sale of machinery, buildings and other business assets are included in taxable sales in addition to such things as proceeds from sales of products, contract work and services.