Impact on Enterprise Systems and Concerns Related to Upcoming Introduction of Consumption Tax Increase and Reduced Tax Rate

Works Applications Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director, Chief Executive Officer: Masayuki Makino; hereinafter “WAP”), today announced the survey result related to the introduction of consumption tax increase/reduced tax rate at “Consumption Tax Increase/Reduced Tax Rate Seminar”. The seminar was held to share information related to the implementation of consumption tax increase and reduced tax rate scheduled for April 2017.

Less than a Year Until the Introduction of Consumption Tax Increase / Reduced Tax Rate

Consumption tax is scheduled to increase to 10% in April 2017. Along with the consumption tax increase, reduced tax rate is also scheduled to be implemented. Discussions related to the subject items and range of impact of the scheduled implementation are actively held. Wide impacts are expected not only to the lives of average consumers, but also to businesses that manufacture the subject items. The businesses are expected to meet the compliance from both operational and system perspectives. As businesses have only one year to comply with the legislation, they are under the pressure to obtain accurate information regarding the tax rate at an early stage.

Impact on IT Systems and Increasing Sense of Crisis among Businesses

Introduction of reduced tax rate is expected to affect various kind of businesses regardless of industry. In particular, major impacts are expected on systems related to purchasing and sales, especially if a business handles many items that are subject to reduced tax rate. Survey result from the seminar suggests that many businesses are feeling a sense of crisis about upgrading their systems and that there is no enough information to meet the new compliance.

Below is the survey result conducted by WAP on the seminar.

Survey outline

・  Subject:            68 representatives from 47 companies
・  Date of survey:   February 24, 2016
・  Survey method:  Questionnaire format

About surveyed companies

Below is information about the industry and company size of businesses (all WAP customers) who participated in the survey.




Company size


Survey result

Result of the survey is shown below.

① Do you feel if you have obtained sufficient amount of information regarding operation and system compliance necessary for the introduction of reduced tax rate?

 Number of valid response: 51



② How much impact to your IT systems are you expecting from the introduction of reduced tax rate?

  Number of valid response: 51



③ How do you plan to comply with reduced tax rate? (Multiple answers possible)

  Number of valid response: 51



Survey result suggests that while many companies expect to be affected by the consumption tax increase and reduced tax rate to certain degree and feel the necessity to comply, the reality is many have not obtained sufficient amount of information to do so yet. In addition, good number of companies are either waiting for the enactment of the law before determining compliance strategy or are still in the process of collecting information. We can draw a conclusion that smooth enactment of the legislation will depend on whether companies can adapt their operations and systems accordingly within one-year enactment period.

WAP will continue to conduct and announce survey results in its effort to provide valuable information to its clients and support operations of large enterprises.

◆  About “Consumption Tax Increase/Reduced Tax Rate Seminar”

At the seminar, experts on consumption tax increase/reduced tax rate were invited as speakers and gave lectures on the latest information about overall situation and future outlook of the legislation, including contents that have been decided and those that are still under review.

<Date of seminar>
Wednesday, February 24, 2016

<Program content>
PROGRAM-1: Latest information about upcoming consumption tax increase/reduced tax rate
PROGRAM-2: Summary of operational compliance and IT system investment in response to the legislation

Media Contact:

Works Applications
Chuzen Kin, Kyoko Kado

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