Changes in Apr–Oct 2027 (Reiwa 9): 1% on food, payment notice, social insurance expansionIn April 2027 food drops to 1%; in October part-time insurance expands
For 2 years from April 1, 2027 (Reiwa 9), the consumption tax rate on food and beverages becomes 1% (national and local combined). On the same April 1, the payment notice takes effect and interim returns for the defense special corporate tax begin, and in October social insurance coverage of short-time workers extends to companies with 36 to 50 employees.
- April 1, 2027Consumption tax on food and beverages becomes 1% (through March 31, 2029)
- April 1, 2027Antimonopoly Act payment notice takes effect (60-day payment rule)
- Business years beginning on or after April 1, 2027Interim returns for the defense special corporate tax become necessary
- October 2027Social insurance coverage expands to companies with 36 to 50 employees
Key points
- For 2 years from April 1, 2027 to March 31, 2029, the consumption tax rate on food and beverages is cut to 1% (national and local combined). The scope is the same as the food and beverages subject to the 8% rate on or before March 31, 2027
- A special provision is made so that an exempt business selling food and beverages can become a taxable business operator from that tax period by submitting the taxable business election form during the tax period that includes April 1, 2027
- On April 1, 2027, the payment notice under the Antimonopoly Act takes effect, prohibiting non-payment after 60 days have passed from receipt of the delivery. It also applies to transactions outside the scope of the Subcontract Act
- From taxable business years beginning on or after April 1, 2027, corporations required to file a corporate tax interim return must also file an interim return for the defense special corporate tax
- From October 2027, social insurance coverage of short-time workers extends to companies with 36 to 50 employees (the category for companies with 51 or more employees runs through September 2027)
What to do in practice
- Check tax rate settings of registers, invoices and accounting software, and the handling of transactions straddling April 1, in NTA materials
- Companies with 36 to 50 employees should start identifying short-time workers who will become eligible ahead of October 2027
For 2 years from April 1, 2027, consumption tax on food becomes 1%. On the same day a rule starts that payment must be made within 60 days of receiving the goods. In October, the companies where people working short hours, such as part-timers, can join company insurance expand to companies with 36 to 50 employees.
Points
- For 2 years from April 1, consumption tax on food becomes 1% (now 8%)
- From April 1, it is prohibited to leave payment unpaid after 60 days from receiving the goods
- From October, people working short hours at companies with 36 to 50 employees also become eligible for social insurance
What the words mean
- Consumption tax rate
- The share of the price charged as consumption tax when you buy something
- Social insurance
- Insurance that working people join through their company, supporting things like illness and life in old age
- National Tax Agency (NTA) / Japan Fair Trade Commission / Ministry of Health, Labour and Welfare (MHLW): NTA: No.6102 Reduced Tax Rate System for Consumption Tax
- National Tax Agency (NTA) / Japan Fair Trade Commission / Ministry of Health, Labour and Welfare (MHLW): NTA: Leaflet on the Consumption Tax Rate Reduction for Food and Beverages
- National Tax Agency (NTA) / Japan Fair Trade Commission / Ministry of Health, Labour and Welfare (MHLW): Japan Fair Trade Commission: Optimizing Payments Across the Supply Chain Following the Discontinuation of Promissory Notes
- National Tax Agency (NTA) / Japan Fair Trade Commission / Ministry of Health, Labour and Welfare (MHLW): NTA: Creation of the Defense Special Corporate Tax (May 2025, revised June 2026)
- National Tax Agency (NTA) / Japan Fair Trade Commission / Ministry of Health, Labour and Welfare (MHLW): MHLW: Special Site on the Expansion of Social Insurance Coverage
This article previews changes that have already been decided and will take effect in the future. Effective dates and details can change, so please check the official source shortly before the date.
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.