Tax Refund in Japan
Japan: Attracting More visitors these days!
In preparation of the 2020 Olympic Games, the Japanese Government has developed numerous initiatives to stimulate the tourism industry. These include improved access to visas for countries like China, Indonesia and Thailand and significant investment in promotional tourism campaigns.
As a result of effort from the Japanese Government, in 2017, 28.7 million tourists visited Japan. Two major groups are Chinese and Korean visitors. 7.35 million Chinese tourists visited Japan, up +15% from the previous year while visitors from South Korea increased by +40% in 2017 with 7.14 million visitors.
According to Global Blue data, sales-in-store have shown remarkable growth of +51% from April 2017 to March 2018, which results from the fact that increased in Chinese and Korean Globe Shoppers. For globe shoppers it is important that the Tax Free Shopping process in Japan is very easy.
The Tax Free Shopping process in Japan is very easy for travellers; minimal input is required, as the VAT is deducted from the total purchase amount, in-store. This has led to a high ratio of completed refunds, highlighting the importance of making the Tax Free Shopping process as easy as possible for Globe Shoppers.
( https://www.globalblue.com/corporate/market-insights/japan-from-outsider-to-superpower)
How to shop tax refund in Japan?
Standard VAT rate: 8%
Minimum purchase amount: 5,400JPY general goods and consumable products.
Who is eligible for Tax Free Shopping?
- Foreign visitors to Japan staying for less than 6 months
- Japanese citizens who have lived abroad for more than 2 years and are visiting Japan for less than 6 months
- No agents or proxies
How to shop tax free in Japan
You must claim the tax refund from the same store as the goods were purchased.
Tax refunds must be claimed on the same day as purchase.
Refunds can be received in cash, and at selected stores to credit cards.
Tax free goods
General goods e.g. watches, bags, household goods over 5,400JPY.
Consumable products e.g. cosmetics, food, alcohol over 5,400JPY to maximum 54,000JPY
Personal use only (no commercial use)
Goods can be totalled together to reach the minimum purchase amount.
If general and consumable goods are combined, the goods must be taken out of the country within 30 days.
Packing
Goods should be packed as determined by the national government and should not be opened before exiting Japan.
Consumption tax will be charged in the event that the goods are used in Japan.
Items to be presented
- Passport or landing permit (crew members). Copies not accepted.
- ID Card and Overseas Residents Visa (Japanese citizens living abroad).
- Receipts and purchased goods.
- Credit card if used for purchase. Corporate cards not accepted.
