An NTA leaflet describes a proposed special rule on the timing of notifications for tax-exempt businesses and simplified-taxation businesses that sell food and beverages. If the notification is filed during the taxable period that includes April 1, 2027 (Reiwa 9), the business can become a taxable business operator, or use the general method, from that taxable period. The leaflet states that this applies only if the bill is enacted.A proposal would add special rules, in the year the consumption tax on food is due to go down, that make it easier to choose your tax calculation method again. In short, the deadline for filing a notice would become easier to use than usual.
Example: sole proprietor or company with a December year-end
January 1, 2027 (Reiwa 9)If the special rule is used, taxable status starts on this date (food and beverages from January to March at 8%)
April 1, 2027 (Reiwa 9)The consumption tax rate on food and beverages is cut to 1%
December 31, 2027 (Reiwa 9)File the notification during this taxable period (until year-end for individuals)
Which shops might fit this special rule?
○Applies: Sells food
○Applies: A small shop that does not pay consumption tax right now
The NTA leaflet outlines a proposed exception for price display that takes into account the work of replacing price tags. Where immediate compliance is difficult, total price display at the 8% or 1% rate would be allowed from February 1 to May 31, 2027 (Reiwa 9). This describes the content after the bill is enacted.When the consumption tax on food goes down, replacing every price tag is a big job. So a proposal would set a special rule that lets shops keep showing prices at the old tax rate for a set period.
Read more →National Tax AgencyConsumption tax & invoicesOn or after April 1, 2027 (Reiwa 9)
According to the National Tax Agency leaflet, the proposal provides a special calculation method for simplified-taxation business operators that sell food and beverages, and a special rule that lets businesses selling food and beverages reduce their interim return tax amount. Under simplified taxation, the tax on purchases is to be recorded as the same amount as the tax on food and beverage sales, regardless of the business category. This describes the content if the bill is enacted.For shops that use a simple way to calculate consumption tax, the proposal adds a special rule for the food they sell. There is also a plan for a rule that lets shops pay less of their tax in advance during the year.
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