The latest guide to tax refund in Japan How to refund tax in Japan

Shopping is always indispensable when going to Japan. Today I will introduce to you the new tax refund policy in Japan. If you still want to go for tax refund, you can take a look at this policy to avoid shopping. There is some trouble.

New tax-free system

First of all, let’s talk about the new tax-free system that will be implemented from July 1, 2020. This should be of interest to everyone. This new tax-free system does not distinguish between general goods and consumables. As long as the consumption amount exceeds 5,000 yen, you can enjoy tax-free discounts!

General goods? Consumables? Maybe some friends are concerned about Japan. I still don’t understand the tax exemption system very well, but don’t worry, let me explain it clearly to you.

Comparison of the new system and the current system Current system

The new system (implemented on July 1, 2019)

The biggest advantage of this new system That is, you can calculate general goods and consumables together, allowing you to easily break through the 5,000 yen mark with your eyes closed, and you don't have to be dizzy by the classification of general goods and consumables. But its disadvantage is that when you are together. In calculation, general goods cannot be used in Japan, so if you have general goods that you want to use in Japan, it is better to follow the current system.

Here you may ask, what are general goods and general goods? What are consumables? Don’t worry, let me tell you one by one.

What do consumables mean?

Consumables are things that disappear after use. , such as food, beverages, alcohol, medicines, cosmetics, etc.

Consumables

The purchase amount of consumables on the same store on the same day is more than 5,000 yen and less than 500,000 yen. Tax refunds are available. However, unlike general commodities, consumables require special packaging and cannot be opened in Japan. They need to be brought back home within 30 days of purchase. In other words, consumption tax must be paid when consumed in Japan. It has nothing to do with Japan, so there is no need to pay. The store clerk will also explain these precautions when buying things.

What does general merchandise mean?

General merchandise is not specific. Definition, all items other than consumables are general goods. Such as electrical appliances, shoes and bags, clothes, watches, jewelry, handicrafts, etc. General goods can be tax refunded if the purchase amount exceeds 5,000 yen in the same store on the same day.

General Goods

As mentioned above, starting from July 1, 2020, the amount of general goods and consumables can be counted together when handling tax refund procedures. For example, if you buy it on the first floor of a department store. I bought a bottle of lotion for 3,000 yen, and then went to the third floor to buy a piece of clothing for 4,000 yen. In this case, I can go to the tax refund counter to handle the tax refund procedure.

Well, let me explain the new tax-free system to everyone. At this point, it feels much more convenient than before. After explaining the new system, let me tell you about the tax refund procedure, which is quite useful if it is your first time in Japan.

First of all, tax refund procedures can only be processed at duty-free shops approved by the Japanese Taxation Bureau. You may ask, how do I know which shops are approved by the Japanese Taxation Bureau? Here I will tell you how to identify it. Generally, duty-free shops will have a tax-free sign at the entrance of the store or in front of the service center.

Look for it. Wrong, if you really don’t know, you can only ask. Generally speaking, the other party will understand it.

In Japan, there are two ways to get tax refund: one is to show your passport at the time of settlement. The consumption tax will be directly deducted from the purchase amount. The other method is to go through the tax refund procedures and refund the previously paid consumption tax after paying the tax-included amount and presenting the purchased goods, shopping receipt and passport at the tax-free counter in the store on the same day.

The first tax refund method process: directly deduct consumption tax from the purchase amount

1. Show your passport when purchasing goods at a duty-free shop and pay the purchase amount after deducting consumption tax. Sign the purchaser's oath.

2. The clerk in charge of tax refund affixes the purchase record ticket (a document recording the tax-free goods purchased) on the passport, and stamps it between the passport and the purchase record ticket.

3. When returning to the country, Japanese customs will take back the receipt.

The second tax refund method process: after paying the tax-included amount, go through the tax refund procedures on the same day and refund the previously paid consumption tax.

1. After shopping, go to the designated tax refund counter or customer service center and present the purchased goods, your passport and shopping receipt (if you use a credit card when purchasing, you also need to present the credit card of the person applying for tax refund at the time of purchase. Sign the admission pledge.

2. Refund the previously paid consumption tax amount in cash. Customers who use credit cards can also refund the consumption tax amount directly to the credit card (some stores require payment procedures for tax refunds.

3. Japanese customs will collect the purchase record stamp when you return home.

Department stores usually have this process, and there are usually counters dedicated to tax refunds, like this.

The photo shows the tax refund counter at Takashimaya Shinjuku Store

The tax refund process is like this. It is inevitable that you will be a little overwhelmed for the first time, so do more strategies, and in Japan There are Chinese-speaking clerks in large stores. If you don’t understand, you can ask them.

Finally, I will give you a little encyclopedia about tax exemption.

Tax-free encyclopedia.

Duty-free shops in Japan

What is your understanding of duty-free shops? Perhaps many people still think of the concept of duty-free shops as shops located in the airport after customs clearance. Well. Yes, these stores are duty-free shops, and in Japan, besides these shops, many shops located outside the airport are also called duty-free shops.

In fact, they are all called duty-free shops. Duty-free shops are easy to understand when translated into English. In Japan, the duty-free shops after customs clearance are called Duty Free Shops, which are also called bonded duty-free shops or airport-type duty-free shops in Japan. They are exempt from duties, alcohol taxes, cigarette taxes and other taxes. Shops, especially non-Japanese items, cigarettes, etc. are very cheap.

Recently, not only at the airport, there are also airport-type duty-free shops in some famous department stores. Because they are located in urban areas, they are also called airports. Large duty-free shops in the city, such as Takashimaya in Shinjuku (for details, please see: Shinjuku, Japan Shopping Guide - Come to Japan Takashimaya Duty-Free Shop to enjoy an unprecedented shopping experience. And many duty-free shops outside the airport are translated into English as TaxFreeshop. They are also called consumption tax-free shops in Japan. These stores are exempt from Japan's consumption tax of 8, because the things you want to buy will not be consumed in Japan, so you do not need to pay consumption tax.

Maybe you will ask, where to go? Which one is better? Here is a brief analysis of the advantages of each.

Bonded duty-free shop DutyFreeShop

Bonded duty-free shop DutyFreeShop

The price is cheap

Because there are no tariffs, etc., it is cheaper than ordinary stores, especially some brands and cigarettes outside Japan. But if they are Japanese brands, the prices seem to be about the same.

No burden of luggage

I started shopping only when I went to the airport, so there was no burden of luggage before that. And if you buy something at an airport-type duty-free shop in the city, you can't take the product away on the spot. You must pick it up at the airport when you return, so you won't have a heavy baggage burden.

Consumption tax duty-free shop TaxFreeshop

Full range of products

The duty-free shop at the airport is a pure duty-free shop, while the consumption tax duty-free shop in the city is mainly for Japanese people The shops only have consumption tax-free services for foreign tourists, so the products are very complete, and you can buy things generally used by Japanese people. There are more choices.

There are many shops

As of April 1, 2019, the number of consumption tax-free shops in Japan has reached 44,646. As long as you want to buy something, you can usually find it.

If you shop at the airport duty-free shop, there is nothing you can do if it is out of stock. If the consumption tax duty-free shop is out of stock, you can go to another store.

How about it? Are you still hesitating? Let’s draw a conclusion based on your own situation.

Japan’s consumption tax

As mentioned just now, almost all duty-free shops in Japan focus on reducing consumption tax. But in China, people have a vague concept of taxes and think that what is written on the price tag is the price of the product itself. In fact, those taxes are already included in the price tag.

In Japan, taxes and the price of the product itself are separate. In other words, if you buy something for 10,000 yen, you will have to pay 800 yen of consumption tax (the current tax rate is 8, and it may rise to 10 in October. Some stores will write it separately, and some will write it together. If you don’t understand If it makes sense, you will be confused.

Generally, tax_, tax_, tax_ and body_price will appear on Japanese price tags. is the price of the product itself, which is the price before tax, while tax_ is the price after adding consumption tax, which is after-tax.

The price tag of tax_

tax_. The price tag is ready. After writing so much, do you have a new understanding of Japan’s tax-free system? If there are any changes, the editor will make a guide for everyone in time. I wish everyone has a good time in Japan. Finally, I want to bring you some benefits. In fact, in addition to tax rebates, some stores in Japan also have coupons! Generally, the discount is about 5 to 10%.