
▲Tax-free cosmetics and pharmaceuticals in Japan. (Photo / Reporter Ji Xiangru)
Travel Center / Comprehensive Report
The number of inbound travelers to Japan has been increasing year by year. To encourage more spending, the Japanese government recently announced further relaxation of tax exemption conditions. Regardless of product category, shoppers can enjoy tax-free benefits as long as their total purchase amount reaches ¥5,000. This policy will officially take effect on July 1, 2018.
Under Japan’s current tax exemption policy, items are divided into two main categories: general goods (such as clothing, shoes, and electronics) and consumables (such as cosmetics and snacks). Shoppers must spend at least ¥5,000 in each category separately to qualify for tax exemptions. However, starting from July 1, 2018, the category distinction will be removed—overseas travelers can enjoy tax-free benefits as long as their total shopping amount reaches ¥5,000.

▲%The current process for claiming tax refunds in Japan is illustrated. (Photo / Reporter Ji Xiangru)

Additionally, the current tax exemption procedures are handled manually. However, during peak travel seasons, this often leads to long queues and excessive wait times. To address this issue, Japanese authorities have decided to implement an electronic tax refund system, scheduled to launch on April 1, 2020. Both manual and electronic refund processes will run concurrently until September 2021.
But in the meantime, some major commercial facilities in Japan have recently introduced automated tax refund machines to solve this problem. These machines offer selections in 10 languages, and approximately 90% of the procedures—from passport registration to logging exempted items—can be completed using the machine. After registration, travelers can take their tax refund application form to the counter for staff to process the refund.
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