- Japan will change their tax-free shopping system from Nov 1. Travellers pay full price first, then claim refunds at the airport, like Singapore's GST refund system.
- Only purchases of 5,000 yen or more per store per day qualify. Travellers must show passports, keep receipts, and present all items for customs inspection within 90 days.
- The new rules aim to stop abuse and illegal resale. Missing items, consumed goods, or left-behind purchases can cancel refunds, trigger tax payment, and bring penalties.
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SINGAPORE – If you’re banking on Japan’s tax-free shopping policy to cough up less at the store while on holiday there, things are about to change.
From Nov 1, instead of being exempt from paying the 10% consumption tax at eligible stores, you will have to pay full price first. You then submit a claim at the airport before you leave.
So it will be similar to Singapore’s GST refund system for tourists.
Japan is hoping to curb abuse by travellers who buy products tax-free, then illegally resell the goods for a profit equal to the amount of consumption tax.
Before planning your shopping itinerary, from Shibuya and Shinjuku to Ginza, here is what you should know about the changes to Japan’s tax-free shopping, according to Japan’s National Tax Agency and the Japan Tax-free Shop websites.
1. What items are eligible?
Any purchase totalling 5,000 yen (S$40) or more per store per day is eligible for a tax refund. This is excluding gold and platinum bullion items, or airport duty-free items.
When purchasing items from eligible shops, present your passport for the purchase to be registered.
2. Claims have to be submitted within 90 days of purchase
Under the new pay first, refund later system, you must go through customs inspection at the airport within 90 days of your purchase.
You will have to show your passport at a tax-free procedure terminal to complete the inspection.
3. Keep your receipts handy for inspection
All items listed on a receipt must be presented for inspection.
If even one item is missing – perhaps because you have already consumed it – none of the goods in the receipt will be eligible for tax refund.
4. How do I submit my claim for tax refunds?
At the airport, look for tax-free procedure terminals at the international departure lobby.
You may also complete the process online at these major airports – Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose and Naha.
But you have to be within areas of the international departure lobbies where dedicated Wi-Fi wireless LAN is provided, up to the security checkpoint.
Complete the inspection via the website Visit Japan Web.
5. Do not check in your luggage yet
Your goods may need to undergo customs inspection. If you check your baggage in before the inspection, it cannot be retrieved, and you will not be able to complete the inspection.
Hence, arrive at the airport early to ensure you have sufficient time to go through the procedures.
6. Purchase limits
The quantity of goods you may purchase tax-free is limited to what you can personally take with you out of Japan upon departure.
All these items may need to be presented by you for customs inspection.
This means you will not qualify for tax refund if you buy goods to be shipped back to Singapore separately.
The new system will eliminate the daily purchase limit of 500,000 yen (S$4,000) on consumables such as alcohol and cosmetics.
7. What about consumables?
Special packaging for consumables such as cosmetics, food and beverages will no longer be required.
However, if you consume all or part of these items, do not complete the tax-free procedure. Instead, report the items you have consumed to a customs officer at the counter.
8. What if I end up leaving behind items that have passed customs inspection?
If you leave behind in Japan items that have already passed customs inspection, you will need to pay a consumption tax equivalent to the exempted amount.
You will also be subject to penalties.