Japanese food, medicine, and cosmetics purchases over 5,000 yen are now tax-free — effective October 1

▲ After October 1, purchasing cosmetics and medicine in Japan totaling 5,000 yen or more will also qualify for tax exemption. (Photo / Provided by MIKA’s Food Adventure Blog)

Travel Center / Comprehensive Report

Japan raised its consumption tax from 5% to 8% starting April 1, leading to price hikes across food, clothing, housing, and transportation. To mitigate the impact on tourism, the Japanese government has introduced new tax exemption policies. In addition to previously exempt items like electronics and clothing, food, beverages, medicines, and cosmetics are now also eligible for tax exemption if the total purchase exceeds 5,000 yen. The policy is expected to take effect on October 1.

Previously, purchases of electronics, IT products, and clothing totaling 10,000 yen or more at a single store qualified for a tax refund in Japan. Starting October 1, beverages, food, and cosmetics can also be refunded, with a minimum spend of 5,000 yen per store (but not exceeding 500,000 yen) now eligible for a refund — great news for Taiwan’s “avid shoppers.”

However, the new tax exemption measures come with some restrictions. For example, tax-free items cannot be opened; when purchased, stores will place the items in plastic bags or cardboard boxes and label them with the item name and quantity. Once opened, the items will be subject to taxation. Also, the items must be taken out of Japan (i.e., overseas) within 30 days of purchase. The new tax exemption only applies to shops displaying the “Japan Tax-free Shop” sign.

New Tax Exemption Measures in Japan
1. Expanded to include consumable goods such as food, beverages, medicine, cosmetics, and tobacco.
2. Tax exemption threshold ranges from 5,000 to 500,000 yen.
3. Tax-free items cannot be opened.
4. Items must be taken out of Japan within 30 days of purchase.
5. Expected to take effect on October 1.