VAT News

Japan To Increase Consumption Tax Despite Impending Recession

The Japanese government had planned to raise the consumption tax from 8% to 10% as of 1st October 2019, however it is widely believed this could be delayed as a result of the current political uncertainty in the country.

The Prime Minister has initially stood by his plans to raise the consumption tax rate despite ongoing speculation he could be forced to postpone this increase through fears of an economic recession. The proposed increase has already been postponed twice in the past five years.

External factors are also contributing to economic uncertainty; the ongoing conflict between China and the US is worrying Japan’s business lenders, uncertainty surrounding the UK leaving the EU and a drop in international investments have contributed to a likely recession.

Related articles

Why overlooking the VAT determination process is detrimental in the era of tax digitalisation

As tax moves into the digital world, hundreds of thousands of organisations across Europe will face substantial challenges when it comes to adhering to VAT.

Read more
Infringement Proceedings Brought Against Germany Over E-commerce VAT Rules

The European Commission decided to initiate formal infringement proceedings against Germany over section 22f & 25e of the German VAT Act.

Read more
HMRC Issue Letters on No-Deal Brexit Advice For UK Businesses Trading within the EU

HMRC letters to VAT-registered businesses trading with the EU explaining how to prepare for changes to customs, excise and VAT if the UK leaves the EU without a deal.

Read more