Tax, Tip and Service charges

General Information

When you see the receipts from you shopping or restaurants, there are things that may not look familiar to you. Also, I get a lot of questions regarding tips in Japan.

1.Consumption tax
2.Service charges
3.Table charges
4.Tips


1. Consumption tax
In Japan, we have consumption tax. For general items, it is 10 %. For food and drink excluding alcoholic drink and dining out is 8%. So, if you buy food and drinks at supermarket, consumption tax will be 8% and if you eat in restaurants, the tax will be 10%. Alcohol, such as sake, tax are 10% either dining in or buying at stores.

If you buy things at Tax-free shops, tax will be deducted at the store if you show your passport.


2. Service Charges
When you are dining in high class restaurants, such as restaurants in hotels, they often charge “service charge (サービス料)”. It will be added to the price of food about 15%-20% depending on the venue. Ordinary restaurants usually do not have service charge. In the restaurants in hotels usually do.

3. Table Charge
If you go to Japanese Izakaya or bars, they usually charge “Otoshi(お通し)” ”Otoshi” is small dish of appetizer served when you have seat in a izakaya or bar. So it is like a table charge. The price depends on the place. Izakaya generally 300 to 500 yen a person, and some more fancy places, they charge more, like 1000 yen.

4. Tips
In general, people do not expect tips in Japan today. That is why they charge Service charge at high class restaurants. However, tipping customs was quite common in Japan in the past. When we stayed in Ryokan (Japanese style inns), we used to give tips when we arrived in the room. Some people still do. On special occasions like wedding, we still tip to driver, hair dresser or kimono dresser. Maybe now, some of the places may not receive tips (as their own rule or policy) but they are not offended at all.

In conclusion, it is not absolutely necessary to tip in Japan. However, if the staff were very responsive or took special care of you, it is acceptable to give them tip as a token of your appreciation. However, staffs provide their services as part of their job. Therefore, it is not always necessary to give tip and there is no need to prepare one.

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