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Japan to change tax-free shopping rules for tourists from Nov 1

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In short

Japan will change its tax-free shopping rules for tourists from November 1, requiring visitors to pay consumption tax upfront and claim a refund when leaving the country. This new system is intended to prevent the resale of tax-exempt goods and could mean longer processing times for departing travellers.

Key points

  • The change means that tourists will need to take greater care when packing their purchase…: The change means that tourists will need to take greater care when packing their purchases and allow sufficient time at the airport to complete the necessary procedures.
  • The quantity of goods travellers may purchase at tax-free shops is limited to items that…: The quantity of goods travellers may purchase at tax-free shops is limited to items that they can personally carry and take out of Japan upon departure.
  • Customs inspections will be conducted on a per-transaction basis, and if a traveller is u…: Customs inspections will be conducted on a per-transaction basis, and if a traveller is unable to present even one item listed on a purchase receipt, the entire transaction will be ineligible for a tax refund.

Sources checked by our analysis pipeline: 1

The change is intended to prevent visitors from purchasing tax-exempt goods and reselling them within Japan.

From Nov 1, tourists visiting Japan will have to pay consumption tax upfront and claim a refund when leaving the country under a new system aimed at preventing the resale of tax-exempt goods.

Currently, eligible tourists can purchase goods without paying Japan's standard 10 per cent consumption tax at designated retailers.

The change is intended to prevent visitors from purchasing tax-exempt goods and reselling them within Japan, according to Jiji Press.

LONGER PROCEDURE AT AIRPORTS

Tokyo Customs demonstrated the new procedures to the media at Haneda Airport on Thursday (Oct 22), where more than 20 terminals have been installed to facilitate the process. Space has also been set aside for baggage inspections, Kyodo News reported.

The additional procedures could mean longer processing times for departing travellers, particularly if queues form at customs inspection points or tax refund terminals.

Travellers departing from major airports, including Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose, and Naha, can expedite the process by completing part of the procedure online.

However, tourists may still be required to present their purchases for customs inspection before leaving Japan.

According to information published by the Japan Tourism Agency, travellers must complete the necessary tax-free procedures, including any required customs inspections, before completing the boarding process. Checked baggage cannot be retrieved once it has been checked in.

The quantity of goods travellers may purchase at tax-free shops is limited to items that they can personally carry and take out of Japan upon departure.

Customs inspections will be conducted on a per-transaction basis.

If a traveller is unable to present even one item listed on a purchase receipt, the entire transaction will be ineligible for a tax refund.

The change means that tourists will need to take greater care when packing their purchases and allow sufficient time at the airport to complete the necessary procedures.

Original source: www.channelnewsasia.com

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