
Want to buy over 500,000 yen in booze and cosmetics without paying a single yen in tax? Japan Tourism Agency wants you to do it too!
We’re in the middle of a golden age for foreign tourist shopping in Japan. Not only is the yen at its lowest value in generations, allowing overseas travelers to stretch the power of their foreign currency, tourists can largely bypass Japan’s sales/consumption tax (which ranges from 8 to 10 percent) as long as they’re taking the items with them when they leave Japan.
The savings aren’t unlimited, though. For the purposes of foreigner tax exemptions, purchases are grouped into two categories. For general purchases, things like clothing, electronics, and terrifying face-hugging anime plushies, as long as your purchase comes to 5,000 yen (US$33) or more, you’re always eligible for the exemption. For consumables, such as cosmetics, pre-packaged food and drinks, medicine and supplements, though, the tax exemption tops out after you hit 500,000 yen in total consumable purchases for your stay in Japan, after which you have to start paying tax for any additional purchases in the category.
However, the Japan Tourism Agency, part of the Ministry of Land, Infrastructure, Transport and Tourism, wants to completely remove the upper limit on foreign shopper tax exemptions for consumables, and has submitted a proposal to abolish it in less than a year’s time.
The rationale behind the 500,000-yen limit is that consumables are more attractive to would-be fraudsters plotting to buy the items at the no-tax price and then resell them while they’re in Japan at a mark-up that’s still cheaper than the with-tax price. It’s easier to quickly unload consumable staples that buyers would stock up on, like, for instance, mascara or skin cream, than, say, cameras or clothing.
500,000 yen may already seem like more than enough for personal consumable shopping in a single trip to Japan, but the Japan Tourism Agency appears to have its eyes on luxury-shopping foreign tourists who’re looking to purchase high-end items while they’re in Japan. Alcoholic beverages are included in the consumables category, for example, and while you’d have to buy a whole lot of cans of Ebisu beer to hit that 500,000-yen limit, if you’re a drinker with deep pockets looking to buy a couple bottles of high-end Japanese whisky, you could rack up a 500,000-yen tally pretty quickly.
▼ It wasn’t all that long ago that Suntory was selling a single bottle that cost 3 million yen.
So does the Japan Tourism Agency’s proposal, which it has included in its latest list of tax reform requests, mean that the Japanese government has decided its resell fears were overblown? Not really. If anything, it’s the opposite that’s occurring. See, the reason it’s called a tax exemption, not a refund, is that foreign shoppers who qualify aren’t required to pay the tax at the time of purchase. This is in contrast to the tax refund systems for foreign tourists in some other countries, where travelers must initially pay the same tax that locals do and then later process a refund request at the airport or border control as they leave the country.
Technically, the authorities in Japan do have the power to inspect travelers’ luggage at the airport pre-departure to confirm that they are indeed taking their tax-free purchases out of the country with them, and consumables purchased tax-free are required to be sealed at the time of purchase in such a way that inspectors can see if the packages have been opened while in Japan. In practice, though, such inspections are rarely performed. However, the Japanese government is expected to switch from a foreign shopper tax exemption to a tax refund one soon, and with stricter enforcement at the departure end, the Japan Tourism Agency feels there’s no longer a need to limit the tax savings on consumables, since the tax will already have been paid at the time of purchase and the absence of the goods at departure will mean no refund on them.
The Japan Tourism Agency’s proposals are included in its reform requests for the next Japanese fiscal year, which begins in spring.
Source: Yahoo! Japan News/Kyodo, The Mainichi, Rakuten Travel
Top image: Pakutaso
Insert image: Suntory
● Want to hear about SoraNews24’s latest articles as soon as they’re published? Follow us on Facebook and Twitter!


Japan’s easy foreign tourist tax exemptions may be getting harder in order to stop fraud, resales
New tax exemption system for foreign visitors to Japan starts today!
Foreign tourists spending at Japanese department stores dropping rapidly, study says
Japanese government considering tripling departure taxes to combat overtourism
Japanese government wants to encourage wealthy foreigners to travel deeper into Japan, NHK says
Private booths are coming to Japan’s Shinkansen bullet trains even sooner than we’d thought【Video】
Rakuten randomly offers 58 New Year’s osechi feasts in Japan, but did we get a star or a dud?
Top Japanese cosplayer Enako returns to Comiket after 6 years, creates mayhem with admirers
The Purple Lucky Bag from Village Vanguard is an extra-large waste of money
A surprising number of Japanese youth get most of their income from their parents
Young Japanese adults show lowest dating experience level yet in annual survey
The top 70 words that keep showing up in Japanese light novel titles (and yes, isekai is one of them)
How to do an overnight bus trip to Hirosaki from Tokyo – Part 1【Photos】
Stamina-destroying “Paralysis Noodles” are Tokyo’s newest over-the-top ramen innovation
Five things that keep Japanese people chained to their jobs
Starbucks Japan ready to get Year of the Horse started with adorable drinkware and plushies【Pics】
Japanese beef bowl chain Sukiya’s 2026 Smile Box lucky bag basically pays for itself
Hayao Miyazaki says Happy New Year to Studio Ghibli fans with new art for Year of the Horse
Cup Noodle tries an authentic Jiro-style ramen, but something’s not quite right
The best Starbucks Japan Frappuccinos we want to drink again in 2026
We revisited Sweets Paradise after a decade to see if Japan’s dessert buffet still delivers
That time Seiji called JASRAC to ask why he didn’t get paid royalties for his song being on TV
We found possibly the quietest Japanese-style hotel in Tokyo’s bustling Shinjuku district
Pizza Hut Japan’s hot lucky bags are perfect for a New Year’s pizza party
Japan’s oldest largetooth sawfish in captivity back on display in Mie Prefecture
7-Eleven Japan starts new temporary luggage storage service in over 300 branches
Disillusionment at Tsukiji’s tourist-target prices led us to a great ramen restaurant in Tokyo
Starbucks teams up with 166-year-old Kyoto doll maker for Year of the Horse decorations【Photos】
Tokyo considering law requiring more trash cans following litter increase in heavily touristed area
Tokyo’s Tsukiji sushi neighborhood asks tour groups to stay away for the rest of the month
Tokyo event lets you travel back in time, for free, to celebrate 100 years since Showa era start
Japan may add Japanese language proficiency, lifestyle classes to permanent foreign resident requirements
Sanrio theme park in Japan announces plans to expand into a Sanrio resort
Survey asks foreign tourists what bothered them in Japan, more than half gave same answer
Japan’s human washing machines will go on sale to general public, demos to be held in Tokyo
Japan’s deadliest food claims more victims, but why do people keep eating it for New Year’s?
We deeply regret going into this tunnel on our walk in the mountains of Japan
Studio Ghibli releases Kodama forest spirits from Princess Mononoke to light up your home
Major Japanese hotel chain says reservations via overseas booking sites may not be valid
Put sesame oil in your coffee? Japanese maker says it’s the best way to start your day【Taste test】
No more using real katana for tourism activities, Japan’s National Police Agency says
Starbucks Japan reveals new sakura drinkware collection, inspired by evening cherry blossoms
Updated cherry blossom forecast shows extra-long sakura season for Japan this year
Japanese prefectural governor wants foreign tourists to pay special extra fee
Foreign tourists in Japan break inbound fall tourism record, are spending their money differently
Japanese avoiding domestic travel as foreign tourists increase, possibly creating vicious cycle
“Foreign travelers are Japan’s guests” – Governor against charging tourists more than locals
Japan considering raising international traveler departure tax even more than previously reported
Japan set to introduce new entry system for foreign tourists
Japanese government wants to build luxury resorts in all national parks for foreign tourists
Japanese convenience stores want you to be honest and request to pay higher sales tax rate
More foreign tourists than ever before in history visited Japan last month
Survey asks foreign tourists what bothered them in Japan, more than half gave same answer
From April onward all price tags and ads in Japan must reflect final cost with sales tax included
Foreign travelers now spend more money in Japan than ever before, surprise country at top of list
Foreign tourists outnumber Japanese ones at Kyoto hotels for first time ever
Fewer Japanese people traveling domestically, government blames birth rate, others blame foreign crowds, costs
Japanese government considering raising foreign resident visa renewal fees by 400 percent or more
Leave a Reply