Consumption tax

The consumption tax rate in Japan is currently 8% and for businesses with sales of 50 million yen or less, the simplified calculation method which multiplies the simple tax rate on sales is accepted as follows

Consumption tax In the simple taxation system, depending on the business form, it is classified into five categories, wholesale business, retailing industry, manufacturing industry, service industry, etc., and other businesses, with respect to taxable sales of each business, wholesale business The purchase deductible tax amount is calculated by applying the deemed purchase rate of 90% for retailers, 80% for manufacturing industries, 70% for manufacturing industries, 50% for service industries and 60% for other businesses I will.

Consumption Tax Simplified taxation system applies to the application form (consumption tax simple taxation system selection notification form) to the effect that the taxable sales for the previous year or the last business year is 50 million yen or less and applies the simple taxation system It is necessary to submit it by the day before the start of the taxing period that you intend to apply to the director of the tax office that has jurisdiction over the taxable place.

Consumption tax In the business classification of the simple taxation system, if businesses that operate two or more types of business, and taxable sales of one type of business accounts for 75% or more of the total taxable sales, the deemed purchase of the business The rate can be applied to the total taxable revenue.

Consumption tax Simplified taxation business classification

Business classification
Deemed purchase rate
Simple tax rate
Type 1 business
Wholesale trade
90％
0.008
Type 2 business
Retail trade
80％
0.016
Type 3 business
Manufacturing industry
70％
0.024
Type 4 business
Restaurant business
60％
0.032
Type 5 business
Service industry
50％
0.040
Type 6 business
Real estate business
40％
0.048

（Note）

The simplified tax rate is the tax rate including local consumption tax

Consumption tax taxation business classification
Type 1 business
Wholesale business (a business that sells goods purchased from others to other businesses without changing its nature and shape).
Type 2 business
It is a business that sells merchandise purchased from others without changing its nature and shape, other than Type 1 business).
Type 3 business
It refers to agriculture, forestry, fishery, mining, construction, manufacturing, manufacturing (including manufacturing and retailing), electric industry, gas industry, heat supply industry and water supply business, falling under Type 1 and Type 2 business Excludes offering services that considers things and processing fees and similar charges.
Type 4 business
It refers to businesses other than Type 1, Type 2, Type 3 and Type 5 businesses, specifically the eating and drinking business, finance and insurance business, etc.
The business that provides services that considers processing fees and similar charges excluded from Type III projects is also a Type 4 Project.
Type 5 business
transportation communication industry, service industry (excluding business corresponding to eating and drinking businesses), excluding businesses falling under projects from Type 1 business to Type 3 business.
Type 6 business
Real estate business

（Reference consumption tax law 30, 37, Enforcement Order 57, Basic Notice 13 – 2 – 1 to 10）

  • Wholesale business refers to a business that sells purchased goods to other businesses without changing their nature and shape. The business that sells products purchased from consumers to other businesses without changing the quality or shape will also fall under the wholesale business
  • A retail business is a business that sells purchased goods to consumers without changing their nature and shape. Therefore, the business that sells products purchased from other products directly to consumers will fall under the retail industry
  • Manufacturers and the like are agriculture, forestry, fishery, mining, construction industry, manufacturing industry, electricity industry, gas industry, heat supply industry, water supply business. However, even businesses conducting these businesses are engaged in wholesale or retailing businesses that sell purchased products without changing the nature and shape of the products purchased, receiving business fees such as processing fees and providing services Will fall under the 5th, other business
  • The service industry and the like are transportation communication industry, service industry
  • Other business refers to a business other than a wholesale business, a retail business, a manufacturing business, a service business, etc. For example, this is a financial business, a restaurant business, etc.