VAT Guide for Manufacturing in Japan

    Manufacturing operating in Japan charge the standard VAT rate of 10% (reduced rates: 8%). Registration becomes mandatory at JPY 10,000,000 (~€62,000), returns are filed monthly or annually, and cross-border movements of goods can trigger local registration or OSS reporting.

    Standard rate10%
    Reduced rates8%
    Registration thresholdJPY 10,000,000 (~€62,000)
    Filing frequencyMonthly or annually
    CurrencyJPY
    In force since01 Oct 2019
    Last verified01 Sept 2026

    Official source

    National Tax Agency

    Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.

    Worked examples

    Domestic sale in Japan

    You invoice a customer based in Japan for ¥1,000 of manufacturing work.

    Add 10% VAT: ¥100. Total invoiced ¥1,100, declared in your monthly or annually return.

    Cross-border B2B inside the EU

    A VAT-registered business in another member state buys the same ¥1,000 service and supplies a valid VAT number.

    Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.

    Sales to consumers in another EU country

    You sell ¥12,000 per year to private customers in other member states.

    Past the €10,000 distance-selling threshold you must apply the destination rate and declare the sales through the One-Stop Shop.

    Late filing exposure

    Your monthly or annually return is filed after the deadline.

    14.6% annual penalty tax on underpaid consumption tax. Additional 5% for non-filing.

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    Compliance checklist

    • Confirm whether you are above JPY 10,000,000 (~€62,000)
    • Register with National Tax Agency before your first taxable supply
    • Apply 10% on domestic sales and the reverse charge on EU B2B
    • Validate every EU customer VAT number in VIES and keep the proof
    • File monthly or annually and archive invoices for the statutory period
    • Qualified Invoice System mandatory since Oct 2023
    • Reduced 8% rate for food and newspapers

    FAQ — Manufacturing in Japan

    When must manufacturing register for VAT in Japan?

    Registration is required at JPY 10,000,000 (~€62,000). Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.

    Which VAT rate applies to manufacturing in Japan?

    The standard rate is 10%, with reduced rates of 8% for specific categories. Applied since 2019-10-01, last verified against National Tax Agency on 2026-09-01.

    How often do I file VAT returns in Japan?

    Monthly or annually. 14.6% annual penalty tax on underpaid consumption tax. Additional 5% for non-filing.

    What must appear on an invoice in Japan?

    Qualified Invoice System mandatory from October 2023. Invoices must include registration number, tax rate, and tax amount.

    Do I charge VAT to business clients in other EU countries?

    No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.

    What is specific to Japan for my sector?

    Qualified Invoice System mandatory since Oct 2023 · Reduced 8% rate for food and newspapers · Reverse charge for cross-border digital services

    Go further

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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