Consumption tax rate on food and beverages cut to 1% for 2 years from April 1, 2027For 2 years from April 2027, consumption tax on food is planned to drop a lot
The NTA announces that for 2 years from April 1, 2027 (Reiwa 9) to March 31, 2029 (Reiwa 11), the consumption tax rate (national and local combined) on the supply of food and beverages will be reduced to 1%. Currently the standard rate is 10% and the reduced rate is 8%, and dining out and catering are not covered by the reduced rate.
- Current 8%
- JPY 800
- From April 2027, 1%
- JPY 100
- Difference
- JPY 700
Key points
- The period is 2 years, from April 1, 2027 to March 31, 2029
- The applicable rate is 1% (national and local combined: consumption tax 0.78% and local consumption tax 0.22%)
- The scope of food and beverages covered is the same as that subject to the 8% rate on or before March 31, 2027
- Currently (as of April 1, 2026) the standard rate is 10% and the reduced rate is 8%. The reduced rate covers food and beverages (excluding alcohol and dining out) and newspapers published twice or more a week by subscription
What to do in practice
- Prepare the tax rate settings of registers, invoices and accounting software for April 1, 2027
- Check how transactions straddling April 1 are handled on the NTA's special site on the consumption tax rate reduction
The consumption tax on food you buy at supermarkets and similar places is now 8%. The NTA announces that for 2 years from April 1, 2027, it will be cut to 1%. Dining out and catering are not covered by the current 8% rate either.
- Now (2026)8%
- April 1, 2027Cut to 1%
- March 31, 2029The day the 2-year cut ends
Points
- For 2 years from April 1, 2027, consumption tax on food will be 1%
- Right now food is 8% and everything else is 10%
- Dining out and catering are not included in the current 8%
What the words mean
- Reduced tax rate
- A low consumption tax rate on things important to daily life, such as food (now 8%)
- National Tax Agency (NTA): NTA: No.6102 Reduced Tax Rate System for Consumption Tax
- National Tax Agency (NTA): NTA: Leaflet on the Consumption Tax Rate Reduction for Food and Beverages
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.