The consumption tax in Japan has been 10% since October 1, 2019.

Certain products are taxed at a reduced rate of 8%, including takeout meals and drinks, drinks from a hotel refrigerator/minibar, and fruit picked and taken home.

Generally, drinks and meals consumed at a restaurant or food court, as well as hotel room service, are subject to the 10% consumption tax.

'Tax-free' refers to a system in which the purchaser is exempt from consumption tax when shopping.

Note that consumption tax exemption only applies in specific places and situations, such as at duty-free shops in airports, certain electronics shops and department stores, and a handful of other stores (duty-free shops) that have been authorized by the tax office to sell goods for export.

Recently, however, the number of department stores, shopping malls, outlets, and other shopping centers that offer tax exemption counters has been increasing, even expanding to include certain small businesses.

For tax-free shopping, look for the duty-free shop symbol (below) posted on the storefront.

・Those who used an automatic gate at the airport and do not have an entry stamp on their passport.
・Those who have been in Japan for more than six months.
・Those currently working in Japan.
・Those who do not meet the required purchase amount for exemption.

Tax-free shopping is only available to non-residents, such as tourists from abroad.

'Non-resident' refers to foreigners who have been in Japan for less than six months, and Japanese nationals who left the country to live abroad for two years or more and have only returned to Japan temporarily for less than six months.

Products eligible for tax exemption are those for personal use and consumption by non-residents, not for business or resale. It is also a requirement to bring items out of the country before use.

In the case of general goods, such as home appliances, clothes, bags, and watches, the sum total of goods purchased at one store on the same day must be at least 5,000 yen (tax excluded; hereinafter all prices are tax excluded).

For consumables, such as food, cosmetics, and pharmaceuticals, total purchase amount must fall within the range of 5,000-500,000 yen in one day at a single store, and must be packaged in a specific way as to not be consumed in Japan.

Additionally, in the case of department stores and shopping malls with a tax-free counter, you may qualify for tax exemption if the combined purchase total from multiple stores equals 5,000 yen or more. However, note that depending on product category, some items may not be eligible for tax exemption, even if they meet the minimum purchase amount.

Consumables are packed in a consumables bag (sealed with a sticker to show if it has been opened) or in a cardboard box. These packages must not be opened before leaving the country.

Also, as a general rule, the total purchase price of consumables and general goods cannot be combined for tax exemption. To qualify, the sum of each category (consumables only or general goods only) must total a minimum of 5,000 yen or more.

However, note that if items are packaged like consumable goods in a way in which they will not be consumed in Japan, they may be combined with consumables under the same requirements.

Depending on the store, there are two ways to apply for tax exemption.
(A) Present your passport at the time of purchase and pay the total with consumption tax already deducted.

(B) Get a refund by visiting the designated tax exemption bulk deduction counter, and presenting your purchases, purchase receipt, and passport. Please note that this process must be completed on the same day as your purchase and that, in some cases, extra fees may apply. Also, try stopping by the counter before shopping. You may be able to get discount coupons!

At the store:
1. Present your passport
Present the passport of the purchaser. (Copies not accepted). You will be asked to confirm your photo, name, nationality, date of birth, the status of residence, date of entry into Japan, and passport number.

2. Explanation of necessary items from the store of purchase
With the digitization of duty-free sales procedures since October 2021, the 'Duty-Free Record of Purchase' procedures describing purchased item information have been completely abolished. The store of purchase creates the purchase record information data and sends it to the National Tax Agency. It is also no longer necessary to sign a 'Purchaser Pledge.' Instead, ask the store of purchase to explain the necessary information.

3. Payment and Product Delivery
・Case (A): Pay sales amount with tax excluded and receive your product.
・Case (B): After shopping at each store, visit the tax-free bulk counter and receive a refund in the amount of the consumption tax.

If the purchase total is less than the minimum required amount for tax exemption due to returns or exchanges, the tax exemption will be canceled for all products, and you will have to pay the full amount, including consumption tax.

At the airport:
4. Present Your Passport
Present your passport to the customs officer, as the purchase record information will be sent electronically. Generally, the purchaser of the tax-free items must carry them when leaving Japan.
If you plan to put your duty-free items in your checked baggage, please inform the airline staff at the check-in counter before checking in your luggage. A customs officer will come to the check-in counter to check your duty-free items.

5. Departure
After passing through customs, the tax exemption process is complete.

Visit Japan Web is a service that allows overseas visitors (including Japanese nationals returning from abroad) to complete the necessary procedures for "quarantine," "immigration inspection," and "customs declaration" online, providing a one-stop solution for entry procedures.

For more information, please check here.

Starting from April 1st, 2023, a new function called "Tax-free Purchasing" has been added to Visit Japan Web. By using this function, passport presentation is not required, and the tax-free process can be completed smoothly. The usage is simple.

Visitors can present a QR code containing passport information (such as name, nationality, date of birth, residence status, date of entry, passport type, and number) that has been pre-registered, and the tax-free shop will simply read the QR code.

However, this method is only available at shops that are equipped to read the QR code, and it is not available at all tax-free shops. In such cases, visitors can complete the tax-free procedures by presenting their passport and providing their passport information.

Experience the joy of shopping in Japan with tax-free coupons at leading retail outlets. Enjoy up to 15% off at Don Quijote, a popular discount store, or explore the vast selection of electronics at BicCamera. Don't miss out on the exclusive discounts at all MITSUI OUTLET PARK locations, a haven for fashion enthusiasts and bargain hunters alike.

Now when shopping at Don Quijote, you can get up to 15% off your purchase! Just tap the coupon above and show it to the cashier when checking out. (Conditions apply. See coupon page for details.)

In Japan, not only airports and department stores, but shopping malls, discount stores, drug stores, and a wide range of other shops offer duty-free shopping, as well. Here, we introduce some major stores that offer duty-free shopping, listed by category.

Please note that not all shops in department stores and shopping malls offer tax exemptions. Also, some nationwide chain stores may not offer duty-free shopping. Please check in advance before visiting.

*Note: Some stores in department stores and shopping malls may not be eligible for tax exemption. Also, not all discount stores and drugstores in Japan are tax exempt.

Online duty-free shopping is also available, and offers a more convenient way to fulfill your shopping needs. Order online before or during your trip, and pick up your goods at your accommodation, the airport, or a duty-free shop. Online duty-free saves plenty of time shopping, giving you more time to enjoy sightseeing around Japan, without having to drag along a bulky suitcase for your purchases!

It covers a wide range of product categories, including home appliances, pharmaceuticals, cosmetics, foods and snacks, stationery, kitchen and daily necessities, books, CDs and DVDs, Japanese specialties, and figurines.
The payment and tax exemption process will be completed at the designated pick-up counter, so be sure to bring your smartphone or another communication device that can connect to the Internet, your credit card or e-money payment, and your passport, stamped with your date of entry into Japan.

Note that cash payments are not accepted; payments should be made only by card or electronic money. Also, note that only the purchaser themselves can claim their goods.

Also note that some duty-free airport stores may offer duty-free pre-order services, allowing you to pre-order your desired items online and pick them up at the airport's DFS counter.

Now, there's a handy web service called TaxFreeOnline.jp that allows you to order tax-free products online before your trip to Japan and have them delivered to your hotel during your stay or even collect things at an airport along your journey. See the link below for details.

Photo credit (main image): Tupungato / Shutterstock.com

*Information in article as of December 2022.

English translation by Krys Suzuki