🇯🇵 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 5,000 JPY 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 5,000 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 be from outside of Japan, so parts of Asia, Europe, UK, USA, Africa and South America. The VAT refund scheme for tourists in Japan is often called the Tax-Free Shopping scheme. But It's also important to note that not every goods is eligible for this scheme as previously mentioned - General, and consumables.
VAT Rate in Japan
The standard VAT rate in Japan is 10%. As a visitor to Japan you can receive VAT refunds on products subject to this standard rate. Also Japan embraces duty free.
How Long Until Refund Expiry
To put it simply the rules in Japan are different to Europe and there probably wont be the chance for an expiry of claim due to the need to process the claim immediately. You complete your refund in store with the app and relevant details, the store will help you. This is the same for duty free.
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. Otherwise, the store may attach a purchase proof to your passport for you to claim the refund 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 instead of manually filling out numerous forms. Simple!
When you depart Japan
Before departing Japan, you'll need to present your goods at Customs. The paper process has been fully digitalized, making it straightforward at the airport. However, there are a few important things to keep in mind:
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: after you obtain the stamp, just upload a photo of it to the app - simple!
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 a Customs stamp.
Time it right:
Sometimes it may take a bit of time at the airport to find the Customs and obtain the required Customs stamp. 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, so plan accordingly. 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.
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!
