Japan relaxes tax exemption conditions! Tax exemption for purchases totaling 5,000 yen or more. Starting in 2018

Reporter Cai Wenjun / Comprehensive report

To attract overseas travelers for shopping, the Japan Tourism Agency and the Ministry of Finance have decided to further relax tax-free conditions. Starting from 2018, regardless of the type of goods, purchases over 5,000 yen will be eligible for an 8% consumption tax exemption.

▲Image of Japan duty-free pharmacy products.(Photo/Reported by Ji Xiangru)

Japan's current tax-free policy divides items into two main categories: general goods (such as clothing, shoes, and appliances) and consumables (such as cosmetics and snacks). To qualify for tax exemption, you must purchase at least 5,000 yen worth of either category separately. For example, if you buy 5,500 yen worth of cosmetics and 3,000 yen worth of clothing at a department store, only the cosmetics meet the tax-free threshold.

▲Tax refund procedures vary among different duty-free shops in Japan. For example, Tokyo Station’s Ichiban-gai requires you to first pick up a tax refund form.(Photo / Reporter Tsai Wen-jun)

With the number of foreign travelers visiting Japan increasing year by year, according to statistics from the Japan Tourism Agency, as of April 2017, there were already 40,532 duty-free shops in Japan. In the nine-month period from January to September of the same year, cumulative spending by visitors to Japan reached a record high of 3.2761 trillion yen.

To attract more travelers to shop and spend in Japan, the Japanese authorities have decided to further relax tax exemption conditions. In the future, regardless of the type of item, as long as purchases total 5,000 yen, customers can enjoy an 8% consumption tax exemption. This is expected to start being implemented from summer 2018.