Japan’s Foreign Tourist Duty-Free Shopping Tax Changes After 2025

2023-11-25 08:56:03

Foreign tourists visiting Japan can currently purchase goods directly at duty-free prices when consuming goods in Japan. However, the Japanese government is evaluating changes to the current tax-free system. In the future, consumption tax may be paid first when purchasing, and the tax will be refunded following confirming the goods when leaving the country. Time on the road. The point may fall following 2025. Japan’s consumption tax is 10%.

The Japanese government has begun to evaluate and modify the current consumption tax exemption system for foreign tourists visiting Japan. In the future, consumption tax may be paid first when purchasing goods, and the tax will be refunded following confirming the goods when leaving the country. The picture shows tourists walking on the street near Kiyomizu Temple in Kyoto. (Archyde.com file photo) (Issei Kato/reuters)

Japanese media recently disclosed that although the Japanese customs authorities levied regarding 2.2 billion yen in consumption tax on foreign tourists who purchased duty-free goods but did not meet the requirements for tax exemption, some foreign tourists left the country without paying the tax, resulting in a recovery of regarding 2.1 billion yen. There is no way to ask for help.

Japan’s “Economic News” reported that the Japanese government has begun to evaluate and modify the current tax-free system. In the future, it may be necessary to pay consumption tax first when purchasing goods, and then refund the tax following confirming the goods when leaving the country. This move is in response to reports that speculators are taking advantage of the current tax-free system to purchase goods at cheap prices and then resell them in Japan for profit.

If it is revised in the future to apply for tax refunds at the airport when leaving the country, since foreign tourists visiting Japan must pay consumption tax at the time of purchase, resale in Japan will be unprofitable, and it is considered to prevent inappropriate tax-free sales.

Taking countries around the world as an example, generally they adopt the post-tax refund method of paying consumption tax first when purchasing. The Japanese government has notified the ruling Liberal Democratic Party and Komeito Party of this basic policy. After discussions by the ruling party’s tax system investigation committee, it is expected to reveal specific directions in the ruling party’s tax system reform outline in December.

Regarding the implementation period of the “pay now, later” tax exemption method, department stores and others must be given time to prepare for system corrections, and we are currently looking for an appropriate period following 2025.

By 2023, there will be a total of 53,000 duty-free shops in Japan, more than 10 times the number in 2013. Now that the depreciation of the yen and the loosening of epidemic prevention restrictions have prompted the return of foreign tourists visiting Japan, some people believe that this opportunity should be taken to modify the tax exemption system to align with international standards.

(Editor-in-Chief: Zhuang Qianyu)

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