What is the tax refund process for shopping in Japan?

1. Tax Refund Eligibility and Conditions

(1)  Applicable Individuals

● Foreign tourists holding short-term visas (valid for up to 90 days) who must handle the refund in person at the time of purchase.

● Japanese residents (long-term residents) are not eligible for tax refunds.

(2)  Minimum Spending Requirements

● Single-day purchases at the same store must total at least 5,000 yen (excluding tax), with a maximum total amount not exceeding 500,000 yen.

● General items (home appliances, clothing, etc.) and consumables (food, cosmetics, etc.) can be combined for the total amount, but must be purchased on the same day at the same store.

(3)  Product Categories and Restrictions

● General Items: Can be used within Japan and must be taken out of the country within 6 months after entry.

● Consumables: Must be packaged in a special sealed bag, cannot be opened before departure, and must be taken out of the country within 30 days after entry.

2. Tax Refund Operation Process

Step 1: Identify Tax-Free Stores

● Look for stores with "Japan Tax-Free Shop" or "Tax-Free" signs (drugstores, electronics stores, department stores, etc.).

● Some airport duty-free stores (such as DFS) only support direct tax exemption upon in-store purchase, without additional procedures.

Step 2: Shopping and Checkout

● Method 1: Instant Tax Refund (Recommended)

Pay directly at the tax-excluded price. The cashier will scan the passport and upload electronic records, eliminating the need for paper documents.

● Method 2: Tax Refund After Purchase

Some malls require payment of the tax-inclusive price first, followed by processing the tax refund at the tax refund counter (common in department stores).

Step 3: Handle Consumables

● If consumables are purchased, the cashier will seal the items with confidential tape and a sealed bag, which cannot be opened before departure as it will be checked by customs.

Step 4: Complete Tax Refund

● The tax refund amount is usually returned in yen cash or credited back to a credit card (UnionPay/Visa recommended for instant processing).

● Some merchants may charge a 1%-3% handling fee.

3. Pre-Departure Precautions

(1)  Customs Inspection

Present your passport and sealed bag (for consumables) to customs at departure to confirm that the items have not been opened. Airport tax refunds are only processed for purchases made at airport duty-free stores within the airport. Tax refunds for purchases made in the city must be completed at the original store.

(2)  Frequency and Amount Limits

Since 2023, electronic monitoring has been implemented, allowing a maximum of 5 tax-free transactions per day at the same store, with cumulative annual amounts exceeding the limit potentially triggering alerts.