Text by / MOOK Scenic Spots Home Travel Life Network Editorial Department, compiled and reported
 

Japan and South Korea tourism continues to boom. To boost tourism, both countries plan to adjust their consumption tax refund thresholds and mechanisms in 2016. The Japanese government plans to lower the tax refund threshold for foreign visitors shopping in Japan from 10,000 yen to 5,000 yen starting in 2016, while also expanding the range of tax-free products eligible for refunds. On the other hand, the South Korean government announced that starting January 2016, it will offer on-the-spot tax refunds for foreign tourists, saving them the hassle of waiting in long lines at the airport to claim refunds.

The Japanese government is considering lowering the tax refund threshold for foreign travelers shopping in Japan from the current 10,000 yen per day per store to 5,000 yen. In addition, the range of tax-free products will be expanded beyond high-end goods to include handicrafts and small-value items. The tax system adjustments are expected to take effect in 2016.

In South Korea, the current tax refund process requires foreign travelers to spend a minimum of 30,000 won to be eligible for a refund either at the airport upon departure or at designated locations in the city. Due to the large number of refund applicants, long queues often form. To address this issue, the South Korean government announced that starting January 1, 2016, foreign tourists will be able to receive on-the-spot tax refunds. Those whose total spending during their visit is less than 1 million won, with no single purchase exceeding 200,000 won, can pay the post-refund price directly at the store, provided they show their passport to confirm eligibility and the store displays a “Tax Free” or “Tax Refund” sign.