Tourists who buy products in Japan may soon undergo a different process of getting waivers for their consumption tax.
Currently, the tourists’ consumption tax is deducted at the point of sale at designated duty-free stores and sales counters. However, some tourists abuse the system by reselling these products within Japan.
Japan’s government is considering changing the way tourists will have their consumption tax waived, reported Japan’s media outlet Nikkei Asia on Nov 25.
Under a new method, tourists will pay the consumption tax upon purchase, and get their tax refund only when they depart Japan and their purchases are confirmed.
This change may take effect in fiscal 2025 or later, said Nikkei Asia.
Foreign tourists are exempted from Japan’s consumption tax if they stay in Japan for less than six months.
Tax exemption is valid for the items taken out of Japan as personal souvenirs. This means that goods to be resold in Japan cannot qualify for duty-free sales.
ST Asian Insider: Malaysia Edition Get exclusive insights into Malaysia in weekly round-up
Thank you!
Sign up
By signing up, you agree to our Privacy Policy and T&Cs.
Duty-free sales at Japanese department stores hit a record 38.3 billion yen (S$343.5 million) in October, the Japan Department Stores Association said on Nov 24, according to Nikkei Asia. This rise may be fuelled by tourists flocking to Japan, reported media outlet BNN.
This figure topped the 34.4 billion yen from April 2019.
‘I was willing to spend on items I didn’t really need’: S’pore travellers splurge in Japan amid weakening yen
Japan looks poised for an economic comeback. But is it for real?
Unlock premium articles with this Black Friday and Cyber Monday deal!
ST One Digital - Monthly $9.90 $0.99/month Cancel any time you want
99 cents a month for the first three months and then $9.90 per month thereafter.
Subscribe now
Get unlimited access to premium news plus subscriber benefits New feature: Personalise your newsfeed for important topics and follow your favourite writers with myST
Easy access at all times via ST app on one mobile device
Catch up on e-paper with a two-week archive so you don't miss out on content that matters to you
Join ST's Telegram channel and get the latest breaking news delivered to you.
Japan Shopping Tourism Taxation
Facebook WhatsApp X More Whatsapp Linkedin FB Messenger Telegram Twitter Reddit WeChat Pinterest Print Purchase Article Copy permalink https://str.sg/ixaw
Read this subscriber-only article for free!
Just sign up for a free account and log in to continue reading.
Japan may change duty-free shopping tax waiver process for tourists: Report
Sign up
Already have an account? Log in.
All done! This article is now fully available for you
Japan may change duty-free shopping tax waiver process for tourists: Report
Read now
Please verify your e-mail to read this subscriber-only article in full
Japan may change duty-free shopping tax waiver process for tourists: Report
Resend verification e-mail
The gift link for this subscriber-only article has expired.
Get unlimited access to all stories at $0.99/month for the first 3 months.
Subscribe now
You have reached your limit of subscriber-only articles this month.
Get unlimited access to all stories at $0.99/month for the first 3 months.
Subscribe now
Read and win!
Read 3 articles and stand to win rewards
Let's go! Terms & conditions apply
Frequently asked questions
Good job, you've read 3 articles today!
Spin the wheel now
Let's go! Terms & conditions apply
Frequently asked questions