
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
Japan triples departure tax, foreign tourists and locals now must pay more to leave country
Japanese government considering tripling departure taxes to combat overtourism
Japan’s new beer glass is designed to force you to drink…water [Video]
Studio Ghibli releases new Kiki’s Delivery Service Jiji music box for anime fans
This beautiful rural Japan river is a great alternative to touristy summer retreats [Photos]
Are Japan’s room-temperature curry packets the boxed lunch heroes we’ve been looking for? [Taste test]
Studio Ghibli theme park announces new expansion saluting a previously off-limits anime
New Japanese vending machine at Shinkansen station sells cups of ice on platform
Japanese convenience store food gets turned into hyper-realistic stationery you can peel open
Police ask Kumamoto residents to not get blackout drunk as much during earthquake relief efforts
Tokyo is getting a branch of famous Los Angeles hot dog chain Pink’s with Japan-exclusive items
Kumamoto earthquake may have created Japan’s newest hot spring inside flooded restaurant [Video]
Pokémon Center Online designates first Pokémon items that will require Japanese ID card to buy
Japanese toilet aims to attract foreign tourists but not everybody is happy about it
Anime fan in Japan arrested for ordering and cancelling over 4.3 billion yen in anime merch
Starbucks Japan teams up with Traveler’s Company for new stationery and goods collection
Japanese vending machine sells freshly squeezed lemon juice with a futuristic light show
Beautiful Totoro bonsai figure needs no watering, makes soothing rain showers whenever you want
End of a manga era as Weekly Shonen Jump’s circulation drops under one million
Kochia calling: Right now is a great off-season season to visit this beautiful Japanese park
Tokyo subway installing new ticket gates that don’t accept payment through Suica or other IC cards
Japan now has human refrigerators inspired by Japanese vending machines
Hatsune Miku collaborates with Hokusai’s art in new Vocaloid ukiyo-e illustration series [Pics]
New Shinkansen luggage drop-off system begins in Japan, making train travel even easier
Studio Ghibli releases anime T-shirts that pay homage to one of Hayao Miyazaki’s most personal films
Air-conditioned dress shirts arrive in Japan to save working professionals from sweltering heat
Japanese Shinkansen becomes an overnight hotel for three nights this summer
Cup Noodle unveils first-ever cold-water instant ramen in Japan
99-year-old woman rescued while attempting to climb Mt. Fuji
Japan announces sudden 400-percent increase in visa fees for foreigners entering the country
Japan’s human washing machines will go on sale to general public, demos to be held in Tokyo
Studio Ghibli has a new anime out, and there’s only one place in the world where you can see it
Starbucks Japan releases new drinkware and goods for Valentine’s Day
Starbucks Japan releases new sakura goods and drinkware for cherry blossom season 2026
Japan’s newest Shinkansen has no seats…or passengers [Video]
Japanese ninja certification exam attracts 131 candidates from Japan and abroad
Salomon releases Japan-exclusive Mt. Fuji hiking gear that doubles as an amazing souvenir
Put sesame oil in your coffee? Japanese maker says it’s the best way to start your day【Taste test】
Foreign tourists in Japan break inbound fall tourism record, are spending their money differently
Japanese government wants to encourage wealthy foreigners to travel deeper into Japan, NHK says
Japanese prefectural governor wants foreign tourists to pay special extra fee
Tokyo revises accommodation tax amidst tourism boom, Airbnb rentals now included
Japan considering raising international traveler departure tax even more than previously reported
Japan set to introduce new entry system for foreign tourists
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
Japanese convenience stores want you to be honest and request to pay higher sales tax rate
Which country’s foreign tourists spend the most money per-person in Japan? Hint: Not the U..S. or China
Kyoto raises hotel accommodation tax to fight overtourism, travelers could pay up to 10 times more
Survey asks foreign tourists what bothered them in Japan, more than half gave same answer
More foreign tourists than ever before in history visited Japan last month
Japan announces sudden 400-percent increase in visa fees for foreigners entering the country
Japanese government wants to build luxury resorts in all national parks for foreign tourists
Japanese government considering raising foreign resident visa renewal fees by 400 percent or more