Tax-free for purchases over 5,000 yen or more on Japan trips: 6 big questions about the new duty-free regulations

▲ The lower yen exchange rate, along with continuously relaxed tax-free thresholds, is attracting Taiwanese travelers to go on shopping sprees in Japan. (Illustration / Photo by reporter Chen Rui-zhong)

By reporter Tsai Wen-jun / Comprehensive report

Japan has expanded its tax-free policy since 2014 to include consumables such as cosmetics and snacks, benefiting many foreign travelers over the past year. With the number of visitors to Japan increasing annually and nearly reaching 20 million in 2015, Japanese authorities have further relaxed the tax-free criteria starting May 2016 to attract more tourists. This article provides the latest information on Japan’s duty-free policies and compiles common tax-free questions.

▲ In the future, the tax-free threshold for both general goods and consumables will be 5,000 yen or more. (Illustration / Photo by reporter Tsai Wen-jun)

Q1: What are the new tax-free standards starting May 1, 2016?

Starting May 1, the tax-free threshold for both general goods and consumables is 5,000 yen or more. Travelers can enjoy tax exemption when purchasing general items such as clothing, shoes, and electronics at a single store if the total reaches 5,000 yen or more. For consumables, tax exemption applies when the purchase at a single store totals between 5,000 yen and 500,000 yen.

Q2: What new tax-free related services were launched along with the changes on May 1?

1. Travelers who wish to have their purchases sent to the airport or overseas can enjoy tax exemption by simply showing their passport, without having to fill out a purchase record slip, thus reducing the burden of carrying large shopping bags during their trip.

2. Tax-free counters are also being set up in shopping streets, allowing shoppers to benefit from tax exemption if their purchases within the street meet the threshold.

▲ To speed up the tax-free process, many drugstores have set up dedicated tax-free counters. (Illustration / Photo by reporter Tsai Wen-jun)

Q3: Can I lend my passport to someone else to use for tax exemption?

When processing tax exemption, you must present your own passport. If another traveler says they forgot their passport and asks to borrow yours for tax exemption, you should not allow it.

Q4: Can I use tax-free items right after buying them?

General goods such as clothing, shoes, and electronics can be used immediately after purchase. However, consumables such as medicine, cosmetics, skincare products, and snacks cannot have their outer packaging opened for use or consumption after tax exemption. They must also be taken out of Japan within 30 days. These items come in special transparent plastic bags—if the seal is broken, it will show “OPENED.” If customs finds an opened bag, you may be required to pay the 8% consumption tax.

▲ Tax-free consumables are packed in special shopping bags and cannot be opened. (Photo / Reporter Tsai Wen-jun)

▲ Once opened, the seal will display the word OPEN. (Illustration / Reporter Tsai Wen-jun)

Q5. Do tax-free items have to be carried in hand for customs inspection or can they be checked in?

All tax-free items can be packed in luggage and checked in.

▲ The purchase record slip must be torn off and submitted to customs upon departure. (Illustration / Reporter Tsai Wen-jun)

Q6. Can the purchase record slip attached to the passport be torn off and thrown away directly?

The purchase record slip on the passport must be torn off and handed to customs for collection before going through immigration.