🇯🇵 Tax Free in Japan: The Complete Guide
Japan, a country known for its rich culture and advanced technology has embraced Pie VAT, it's not only a top travel destination but also a fantastic shopping paradise for tourists from outside the country. This guide will take you through the process of tax-free shopping in Japan, allowing you to enjoy VAT refunds on your purchases. Heading on your travels on business or vacation and need some more information on using Pie VAT? - We've got you covered here.
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Japan Tax Free Rules
Minimum Amount Per Receipt
Tax free shopping products are categorized into “general items” and “consumables”.
General items include home appliances, cameras, clothing, bags, shoes, souvenirs, watches, and accessories. You must spend at least 5,500 JPY (including tax) in this category to be eligible for tax-free shopping.
Consumables include cosmetics, drinks (including alcohol), food, medicine, and confectionery. Purchases in this category must be between 5,500 JPY and 500,000 JPY and must not be opened while you are in Japan to be eligible for tax exemption.
Who Can Shop Tax Free in Japan
To benefit from tax free shopping in Japan, you simply must have residency outside of Japan. The VAT refund scheme for tourists in Japan is often called the Tax Free Shopping scheme.
VAT Rate in Japan
The standard consumption tax (VAT) rate in Japan is 10%. As a visitor to Japan you can receive a tax refund on products subject to this standard rate.
How Long Until Refund Expiry
Japan regulations require the tax refund be completed the same day. Therefore, a tourist must finish the entire process on the same dau, otherwise it becomes ineligible for a refund.
Are you a retail store? See how Pie VAT can help you maximize your tourist success.
Learn more here: Tax Free for Retailers
How to shop tax free in Japan: A step by step guide for tourists
At the store
Before making a purchase, let the sales assistant know that you'd like to claim a VAT refund. They may need to verify your eligibility by checking your valid documents, so be sure to have them with you while traveling. In some stores displaying the "Japan Tax-Free Shop" logo, VAT can be refunded immediately in the form of a discount on your sale price (paying the sans-tax price). Otherwise, the store may charge you the full price (including tax) and direct you with further instructions on how to reclaim the tax later at a tax refund counter.
You are close to the moment you have been waiting for: Your VAT refund is almost ready for collection. Head to the designated tax counter with your receipts and necessary documents. The staff at the counter will facilitate the refund and help with the Pie VAT app.
With Pie VAT: You process your claim via our app and can avoid lengthy lines. Simple and digital!
When you depart Japan
Before departing Japan, you may need to present your goods at Customs. You will scan your passport and follow the instructions given - you may need to show your purchases.
Ensure all your tax-free items are in your carry-on or easily accessible to show to Customs.
Consumables must be sealed in clear plastic bags and remain unopened.
If Customs cannot verify your documents or eligibility, you'll be required to pay the consumption tax on the spot. To avoid any issues, make sure to arrive at the airport early to allow time for the process and prevent any last-minute rush.
With Pie VAT: we guide you through the process, with tips and tricks to ensure you don't miss out on savings!
When preparing to leave Japan, make sure to pack all your tax-exempt items as they may be inspected by customs to verify that you are taking them with you. If you've consumed or given away any of the items on which you received a tax exemption, you will need to pay the tax at the airport before departing. Be mindful of standard airline rules. Items like liquids over 100ml are not allowed in carry-on luggage, and some items, such as meats and fruits, may be prohibited in either carry-on or checked baggage. Always check with your airline before traveling to avoid any issues.
With Pie VAT: withdrawal of your VAT refund is digital (through the Pie VAT app), and refunds are generally received within 24 hours!
Japan Tax Free Tips
Look for Tax Free Shopping Signage:
In Japan, stores that participate in the tax-free shopping program usually indicate this by displaying "Tax Free Shopping" signs. You might find these signs as stickers on the windows or doors of the store. Additionally, inside the store, there may be small tax-free displays or signage on the counters, making it easier for shoppers to identify and take advantage of the tax-free shopping opportunity.
Keep your receipts:
Be sure to keep your receipts, just in case. Without the receipt, you may be denied your tax free at Customs if you need to show your goods.
Time it right:
Sometimes it may take a bit of time at the airport to find Customs. There may be lines as well, so please plan ahead.
Eligibility
Not all stores offer immediate tax deductions, so you may need to pay the full price and then claim your tax refund at a designated tax free counter, typically located within the mall or shopping area where you made your purchase. Be sure to bring your passport for this process. It's important to visit the tax free counter on the same day as your purchase, otherwise you will forfeit your refund. You'll also need to present your receipt and, if applicable, the card used for the purchase. The name on the card and passport must match, and only the person making the purchase can claim the tax exemption.
Use the Pie VAT app to digitize and simply this process!
Don't be shy to ask for help.
Our in-app customer support team is available 24/7 to help answer any questions about your claim, required documents, eligible purchases, or anything else!
