Total price display exception for food and beverages, and transitional measures for regular supply contracts on and after April 1If you can't replace price tags in time, the old price may stay for a while (planned)
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.
- February 1, 2027 (Reiwa 9)The exception period begins (total price display at 8% or 1% allowed)
- April 1, 2027 (Reiwa 9)The rate on food and beverages is reduced to 1%
- May 31, 2027 (Reiwa 9)The exception period ends
Key points
- From February 1 to May 31, 2027 (Reiwa 9), for food and beverages, total price display at the 8% or 1% rate is allowed, provided notices etc. are posted so customers are not misled about the actual payment amount (a mix of old and new rates is also acceptable)
- Examples of a "difficult circumstance": price tags cannot be replaced at night, or prices are printed on catalogs or product packaging
- A similar exception will be provided when the reduction ends (February 1 to May 31, 2029 (Reiwa 11))
- Even for sales of food and beverages on and after April 1, 2027 (Reiwa 9), sales under certain regular supply contracts or mail-order sales remain at the 8% rate as before
- Cases where it can be confirmed that the contract was made on the premise of the 1% rate, or where the contract was changed, are excluded from the above
What to do in practice
- List when to switch the price display on price tags, catalogs, packaging and e-commerce sites
- Check in the publisher's materials which rate applies to regular supply contracts and mail-order contracts
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.
- ○Applies: Price tags can't be replaced at night
- ○Applies: The price is printed on a catalog or package
- ×Does not apply: The display could be confused with the amount actually paid
Points
- It covers the period from February 1 to May 31, 2027 (Reiwa 9)
- Even if you can't keep up, you must make sure customers are not confused about the amount they actually pay
- Having new prices and old prices mixed together is okay
What the words mean
- Total price display
- Writing the actual amount you pay, tax included, on the price tag
- National Tax Agency (NTA): NTA: Leaflet on the consumption tax rate reduction for food and beverages
- National Tax Agency (NTA): NTA: Special site on the consumption tax rate reduction
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.