
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
We go on a quest to find the cheesiest sushi at Japanese conveyor belt sushi chains【Taste test】
More Shinkansen trains being added to Japan’s “golden route” to meet traveler demand
U.S.A. now the fastest-growing market for Japan’s high-tech toilets, now selling quicker than ever
Ken Shimura remembered for his huge contribution to the game Rock, Paper, Scissors in Japan
Majority of Japanese men say they feel some discomfort seeing female janitors in men’s restrooms
Anime’s Tetsuwan Atom/Astro Boy shows up on a pedestrian walk signal in Japan
We take a ride on Seibu Railway’s futuristic luxury liner: the Limited Express Laview
Japanese woman sues man for 1.5 million yen for violating her “right to chastity”
Gundam and Reebok team up for new GQuuuuuuX Pumps【Photos】
Japanese man who didn’t know how banks work defrauded out of 21 million yen
Tokyo considering law requiring more trash cans following litter increase in heavily touristed area
Tokyo event lets you travel back in time, for free, to celebrate 100 years since Showa era start
Sanrio theme park in Japan announces plans to expand into a Sanrio resort
Stamina-destroying “Paralysis Noodles” are Tokyo’s newest over-the-top ramen innovation
This hot springs town in Japan sets fire across a mountain every winter in a beautiful tradition
Uniqlo Ukiyo-e Blue T-shirts: A cool-hued reinterpretation of some of Japan’s greatest paintings
Japan’s first hotel with a human washing machine is now ready for you to come and bathe in it
Studio Ghibli mixes with sporty street styles of New Era to put No Face on your head in cap series
Japan’s human washing machines will go on sale to general public, demos to be held in Tokyo
Starbucks Japan unveils new Christmas goods and a rhinestone tumbler that costs 19,500 yen
Real-world Nausicaa Ghibli anime glider completes its final flight in Japan【Video】
Japanese train company is letting fans buy its actual ticket gates for their homes
Is China’s don’t-go-to-Japan warning affecting tourist crowds in Tokyo’s Asakusa neighborhood?
The 10 best day trips from downtown Tokyo【Survey】
Nintendo’s Kirby now delivering orders at Kura Sushi restaurants, but not in Japan
A guide to visiting Sagamiko Illumination, one of the three biggest light-ups in Kanto
Survey asks foreign tourists what bothered them in Japan, more than half gave same answer
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】
The top 10 annoying foreign tourist behaviors on trains, as chosen by Japanese people【Survey】
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
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
“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
Kyoto study finds nearly 500 translation errors for foreign tourists, new guidelines released
Sushi passed up by ramen in survey of foreign tourists’ favorite thing to eat in Japan, but why?
Leave a Reply