Japan is home to a fantastic variety of retailers, from tiny independent businesses to massive department stores. And shopping tax-free in Japan can make picking up fun souvenirs, snacks, and a huge range of other goods even more satisfying.
We love to bring you Japan travel tips to help you get the most out of your visit, and today we’ll explain how to shop tax-free and make your money go further!
What is Tax-Free Shopping in Japan?
Shopping tax-free in Japan is simple: eligible customers can claim back the 10% consumption tax (or VAT) to make a saving on qualifying purchases. You’ll find many stores across the country that sell products at tax-free rates too.
The concept of tax-free and duty-free may seem similar, but there are some key differences:
Duty-Free: Duty-free goods are typically sold to Japanese and foreign travelers departing the country. They’re exempt from multiple taxes (not just consumption tax), such as tobacco and liquor tax. Duty-free products are usually sold in airports or other points of entry into a country.
Tax-Free: Tax-free stores sell goods to non-residents and foreign travelers, but they’re exempt from consumption tax only. These are more general items than available in duty-free stores, though there is some crossover.
The following people are eligible to shop in Japan tax-free:
・Non-residents and foreign visitors to Japan who have been in the country for less than six months
・Japanese nationals who have returned to the country on a temporary basis
However, you must present your passport when buying tax-free goods.
Unfortunately, you can’t buy everything in Japan tax-free. Items you want to purchase must fit into one of two categories:
1.) Consumables
2.) General Goods
Let’s find out just exactly what that means.
Consumable goods include:
・Food
・Drinks
・Medicine
・Health food products
・Cosmetics
・Cigarettes
But if you buy any consumable items in Japan tax-free, you cannot consume them while still in Japan. All consumable goods will be sealed and labeled at the point of purchase. You won’t be able to open them until you leave the country.
Another stipulation is that you must spend 5,000 – 500,000 Yen, buy the goods on the same day in the same store, and take them out of Japan within 30 days.
General goods include:
・Clothing
・Electronics
・Jewelry
・Houseware
These items do not require special packaging or labels. You can use your purchases while still in Japan, but you must take them out of the country within six months of entering. As with consumables, the minimum spend to qualify for a tax refund is 5,000 Yen and the maximum is 500,000 Yen.
You cannot shop tax-free everywhere in Japan. Only certain types of stores participate. These usually include:
・Airport stores
・Department stores
・Outlet malls
・Stores in shopping districts and tourist-heavy areas
Businesses that offer tax-free shopping in Japan display a prominent “Japan Tax-Free Shop” sign or sticker. These are typically red and white to make sure they stand out.
If you’re not sure whether a store offers tax-free shopping, don’t hesitate to ask. Otherwise, you may spend more than you intend to if you can’t apply for a tax refund.
Depending on the store, there are two possible processes:
1.) You present your passport at the counter when purchasing your items and pay the tax-free rate.
2.) You pay the full price of the goods first, then take them to a special tax-free counter to receive a refund on the tax amount. Request a Record of Purchase to show when passing through customs at the airport. You may need to sign a Purchaser’s Pledge to confirm that you agree to follow the rules of tax-free shopping.
Regardless of the method used, you must have your passport with you to shop tax-free in Japan.
Here are a few key points to remember when shopping tax-free in Japan:
・The name on your passport must match the name on the credit card you use to buy tax-free goods.
・Take care when purchasing both general and consumable goods in one transaction: you need to spend at least 5,000 Yen in each category to qualify for tax-free shopping in Japan.
・You can’t open consumables until you leave Japan. If you can’t wait until then, you will need to give up your tax exemption.
・When preparing to leave Japan, confirm with customs which items are accepted as carry-on luggage and which are prohibited. Do this before you complete your check-in procedures.
・If you use an automated entry gate or a similar method to enter the country, you will not be able to enjoy tax-free shopping in Japan. That’s because you need a stamp showing your date of entry for verification.
・Make sure that you can legally bring all the products you buy into your home country after your trip to Japan. That’s crucial if you want to keep any of them as souvenirs!
The Japanese government is introducing tighter rules for tax-free shopping in Japan. The goal is to stop foreign travelers from selling purchases on and profiting illegally while still in Japan.
Once the changes come into place (likely the fiscal year 2025), visitors will pay an item’s full price with the consumption tax. An electronic record of these purchases will be added to their passports, which will be scanned when leaving Japan. Customs teams will then refund the consumption tax before visitors depart.
Shopping tax-free in Japan is a fantastic way to pick up amazing consumables and general goods in a more affordable way. And if you need a comfortable place to relax after a day’s tax-free shopping in Japan, we’re happy to help!
Other article you may be interested in:
・Tips for Money in Japan and Currency Exchange Options
・Japan Travel Tips: Internet Access While Traveling in Japan
・Best Travel Tips: What to Pack for Japan & Practical Info
