Japan’s Tax-Free Shopping Now Starts With You Paying Full Price

Since November 1, visitors to Japan no longer get tax knocked off at the till. Shoppers pay the full tax-inclusive price, 10 percent standard or 8 percent for food and drink, and claim the tax back later through a refund system tied to Japan Customs. Purchases made on or before October 31 still follow the old rules.

The process begins in the shop, where staff register your passport and purchase electronically. Before you leave the country, you complete a customs procedure at the airport or seaport, at a kiosk or, at some airports, through Visit Japan Web. Customs may ask to see the goods, so do it before checking bags. The refund is paid by the retailer or its refund provider, roughly one to two weeks later to a card or two to four weeks to a bank account.

There is some relief. The old split between general goods and consumables is going away, the sealed-packaging requirement for consumables is abolished, and the ¥500,000 consumables cap is removed. The minimum is ¥5,000 before tax at one store on one day, and purchases of ¥1 million or more need detailed product registration.

The traps are in the timing. Customs confirmation is required within 90 days of purchase, and if any item on a purchase record is missing at inspection, the whole record can lose eligibility. Consumables you have used or eaten in Japan also lose eligibility. Budget for the upfront cost, keep receipts together, and leave extra time at the airport.

Sources: Travel And Tour World, Japan Travel