Works Applications, Inc. (Headquarters: Chiyoda-ku, Tokyo; CEO: Osamu Hata; hereinafter “WAP”) conducted a survey targeting corporate accounting and information systems departments regarding the impact of the “proposed 1% consumption tax reduction on food products,” which has been announced for implementation starting in April 2027.The survey results revealed that the proposed 1% consumption tax reduction on food items will not be limited to modifications to store POS systems but will have a broad impact on the back-office operations of general businesses as well.

To what extent do you think this will affect accounting practices and accounting systems?

Source: Survey by Works Applications Co., Ltd. (conducted June–July 2026)

[Survey Background and Objectives】

　WAP conducted this survey for a limited period of two years starting in April 2027 to assess the impact on corporate accounting and information systems departments resulting from the reduction of the consumption tax rate on food products to 1%. In policy discussions, system-related issues—such as the fact that “it takes about half a year to upgrade store POS registers”—have been highlighted,and while the impact on the retail and foodservice industries is often the focus of discussion, this change will also affect back-office operations at general companies that do not deal in food as their core business—including expense reimbursement related to internal consumption (such as entertainment and meeting expenses) and the reconfiguration of existing accounting systems and tax classification masters.

[Survey Summary]

The main findings of this survey are as follows:

・ “85.6%” of companies recognize the impact on accounting practices and accounting systems
Regardless of whether they handle food products, approximately 90% of all companies are concerned about the impact and burden on back-office operations resulting from this tax reduction proposal.

・ The biggest concerns are the “burden of selecting tax classifications” and the “increased workload for verification”
The coexistence of three tax rates complicates the determination of the correct rate when entering transaction data. There are concerns about data entry errors on the front lines and an increase in verification and correction work for the accounting department.

・ “Two rounds of system adjustments” required by the two-year limited measure and the associated modification costs pose major barriers
The need for a total of two rounds of system adjustments —at the “start” and “end”—is viewed as a serious challenge from a return on investment perspective.While the most common system adaptation policy is “handling within the scope of maintenance,” there is a tendency for large companies to rely on “modifications using additional budgets,” and for medium-sized companies to rely on “manual processing.”

[Feedback from Responding Companies]

In this survey, even companies whose core business does not involve food expressed concerns about increased operational burdens and the new regulations.

• “It seems they are only considering POS system upgrades, but I hope they will take into account the significant impact this will have on the core systems used by each company.” (Construction and Real Estate Industry / Accounting Department)

・ “There is concern that incorrect journal entries will be recorded due to misunderstandings among accounting staff at group companies. Since we cannot verify every single journal entry, it will take a tremendous amount of effort to ensure everyone is properly informed.” (Transportation and Logistics Industry / Accounting Department)

Regarding the back-office strategies companies should adopt moving forward, Certified Public Accountant Masahiko Inoue provided the following comments:

<Comment from Masahiko Inoue, Certified Public Accountant>

　The introduction of the 1% tax reduction on food products will have a serious impact on the accounting systems and bookkeeping practices of large companies.The coexistence of three tax rates will not only create the hassle of identifying food items on the sales floor and modifying invoices but will also inevitably complicate tax filings, significantly increasing the burden on accounting operations. Furthermore, system adjustments required for this two-year limited measure pose a major challenge in terms of return on investment.

　A systematic approach is essential to protect the investments and resources needed for a company’s sustainable growth. First, it is crucial to identify the full scope of the impact on your company and ensure that, even though this is a time-limited measure, your response does not remain merely provisional. Building a resilient foundation capable of flexibly adapting to future legislative changes is key.

[Detailed Report on This Survey Now Available]

　Based on the findings of this survey, it is important for companies to view their response to the consumption tax rate change not merely as compliance with a legal amendment, but as an opportunity to review their operational and system infrastructure so that they can flexibly adapt to future regulatory changes. You can view the report below, which summarizes real-world feedback from various industries, as well as the specific impacts on accounting systems and key response points.

▼Click here for the detailed report on this survey

【Survey Overview】