VAT calculator for Japan
The standard VAT rate in Japan is 10%. To remove it from a gross price you divide by 1.1000, which is not the same as taking 10% off. Consumption tax, with a reduced 8% rate on food and drink.
- VAT to add
- 10.00
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 10.00
- Line total for the quantity
- 110.00
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.090 909
- Gross-up multiplier
- 1.100 000
- How far the subtraction method goes wrong
- 1.00
Show the working
- Price excluding VAT = 100
- VAT rate = 10
- Price including VAT = 110
- Quantity = 1
- VAT to add = 100 * 10 / 100 = 10
- Price including VAT = 100 + 10 = 110
- Line total for the quantity = 110 * 1 = 110
- Net price behind a gross one = 110 / (1 + 10/100) = 100
- VAT inside a gross price = 110 - 100 = 10
- VAT fraction of a gross price = (1 + 10/100) > 0 ? (10/100) / (1 + 10/100) : 0 = 0.090 909 1
- Gross-up multiplier = 1 + 10/100 = 1.1
- wrong_way = 110 * (1 - 10/100) = 99
- How far the subtraction method goes wrong = 100 - 99 = 1
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
Scenarios & local history
Compare a saved scenario
Recent calculations
The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.090909
The VAT fraction is the shortcut accountants use: at 10% you multiply a gross figure by 0.090909 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
Consumption tax, with a reduced 8% rate on food and drink.
Frequently asked
What is the VAT rate in Japan?
The standard rate is 10%.
How do I remove VAT from a price?
Divide by 1.1000. Subtracting 10% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.