Japan will move eligible foreign shoppers to a refund system for tax-free purchases beginning Nov. 1, requiring them to pay consumption tax first in a change Kyodo News said aims to curb resale before departure.
Japan Customs says travelers must complete a departure procedure at an airport or seaport within 90 days of purchase and show their passports at a terminal. Customs may direct some travelers to present their goods for inspection. A smartphone option through Visit Japan Web will be available at seven major airports using dedicated Wi-Fi.
After customs confirms the goods are leaving Japan, the tax-free shop or a refund provider acting for it will return the tax amount. The process applies to purchases made on or after Nov. 1, Japan Customs says.
The rules will end special packaging requirements for consumables and remove the 500,000 yen daily purchase limit for those goods. Consumables consumed in Japan will not qualify for a refund, according to Japan Customs.
Tokyo Customs showed preparations at Haneda Airport, including 22 terminals to flag purchases for possible checks and space for baggage inspections, Kyodo News reported Thursday, Oct. 22.
Masaki Akita, who heads department store operator Matsuya and chairs the Japan Tax-Free Shop Association, told Kyodo the change would ease retailers' responsibility for preventing fraudulent purchases. Kyodo also reported that some retailers worry shoppers may make fewer additional purchases under the new process.
