Consumption Tax Calculator
ToolMarche's Consumption Tax Calculator is a free web tool that calculates tax-excluded and tax-included prices at three rates (10%, 8%, 5%) simultaneously. Features include rounding options (round, floor, ceiling), invoice system guidance, and Japanese/English bilingual support.
What You Can Do
The Consumption Tax Calculator calculates 10%, 8%, and 5% consumption tax rates simultaneously, converting between tax-included and tax-excluded prices. Perfect for invoice verification and invoice system compliance. Choose rounding options and see accurate results in real-time.
- ✅ Three tax rates: Calculate standard 10%, reduced 8%, and old 5% rates simultaneously
- ✅ Bi-directional conversion: Calculate from either tax-included or tax-excluded prices
- ✅ Rounding options: Choose from round, floor, or ceiling methods
Calculate 10%, 8%, and 5% consumption tax rates. Supports reduced tax rates with easy conversion between tax-included and tax-excluded prices. Real-time results.
💰 Enter Amount
📊 Results
💡 Reduced Tax Items: Food & beverages (excluding alcohol & dining out), newspapers (published 2+ times/week)
📋 Amount List
💡 Use Cases
- Invoice verification - Verify accurate tax amounts
- Shopping budget planning - Know tax-included prices in advance
- Product pricing - Check both tax-included and tax-excluded prices
- Expense reconciliation - Verify receipt amounts
- Invoice system compliance - Verify multiple tax rates at once
How to Use
📌 Basic Usage
Select "Calculate from Tax-Excluded Price" or "Calculate from Tax-Included Price" and enter the amount. The tool will calculate 10%, 8%, and 5% consumption tax rates simultaneously.
💡 Calculation Modes
- Calculate from Tax-Excluded Price: Calculate tax-included price from base price
- Calculate from Tax-Included Price: Calculate base price and tax amount from tax-included price
⚙️ Rounding Methods
- Round: Round up values 0.5 and above
- Floor: Round down all decimal values (most common)
- Ceiling: Round up all decimal values
📝 About Reduced Tax Rate
Since October 2019, the following items are subject to the 8% reduced tax rate:
- Food and beverages (excluding alcohol and dining out)
- Newspapers published twice or more per week (subscription-based)
📄 Invoice System and Rounding Rules
What is the Invoice System (Qualified Invoice Storage Method)?
The Invoice System (officially called "Qualified Invoice Storage Method"), which started on October 1, 2023, allows businesses to receive tax credit deductions by issuing and storing qualified invoices.
Invoices must include the following information:
- Registration Number (13-digit number starting with T)
- Transaction Date
- Transaction Details (indicating reduced tax rate items)
- Amount by Tax Rate and Applied Tax Rate
- Consumption Tax Amount by Tax Rate
Rounding: "Once Per Invoice Per Tax Rate"
One of the most important rules of the Invoice System is that rounding is performed "once per tax rate per invoice". This means you should combine all items with the same tax rate and round only once on the total, rather than rounding each item individually.
Example: Three items with 10% tax
❌ Incorrect Method: Calculate and round tax for each item
Item A (980 yen) → 98 yen, Item B (1,200 yen) → 120 yen, Item C (550 yen) → 55 yen
Total tax: 273 yen
✅ Correct Method: Combine items with same tax rate
Total (980 yen + 1,200 yen + 550 yen = 2,730 yen) × 10% = 273 yen
Round only once
Rounding Methods and Common Practice
While there is no legal requirement for a specific rounding method (round, floor, ceiling), floor (rounding down) is the most common in practice. This is done from a consumer protection perspective to display slightly lower prices.
- Floor (most common): Round down decimals. Example: 273.4 yen → 273 yen
- Round: Round up 0.5 and above. Example: 273.5 yen → 274 yen
- Ceiling: Round up decimals. Example: 273.1 yen → 274 yen (favors businesses)
Mixed Tax Rates (10% and 8%)
When reduced rate (8%) and standard rate (10%) items are mixed, calculate separately by tax rate and round each rate once.
Example: Shopping at a supermarket
• 10% items (daily goods): Total 3,500 yen → Tax 350 yen
• 8% items (food): Total 2,800 yen → Tax 224 yen
Total tax: 574 yen (rounded once per tax rate)
Who is Affected by the Invoice System
- Qualified Invoice Issuers: Taxable businesses with annual sales over 10 million yen must register.
- Tax-Exempt Businesses: Businesses with annual sales under 10 million yen cannot issue invoices. This may affect transactions as clients cannot receive tax credit deductions.
- Transition Period: From October 2023 to September 2026, 80% deduction is available for purchases from tax-exempt businesses. This reduces to 50% from October 2026 to September 2029.
Important Points When Creating Invoices
- List total amounts by tax rate and clearly indicate each tax amount
- Round only once per tax rate (not per item)
- Mark reduced tax rate items with symbols like "※"
- Always include the qualified invoice issuer registration number
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