Japan Tax Exemption｜Your Essential Guide to Japan's Latest Tax-Free Shopping System & Exemption! Read Before You Depart!

Japan Tax Exemption｜Your Essential Guide to Japan's Latest Tax-Free Shopping System & Exemption! Read Before You Depart!

Coinciding with the recent weakening of the Japanese yen, many travelers seized the advantage of their trip to Japan to get in bulk the best goodies in the country.  Although goods and services purchased in Japan are subject to consumption tax, tourists are exempt from this. However, there is often confusion surrounding tax-free items and the maximum spending limit. Whether you are visiting Japan for the first time or you are a seasoned traveler, it's always important to have a clear understanding of Japan's tax-free regulations.

Japan Tax Exemption｜A Handy List of Who, Where & What Qualifies for Tax Exemption

Who is eligible for the tax exemption program? :

● Foreign visitors staying in Japan for less than six months only.

● Non-residing Japanese nationals staying in Japan for less than six months only.

Shops

Tax exemption in Japan basically applies to all items, from pharmacies, home appliances stores to big department stores; If you see the 'Japan Tax-Free Shop' sign in store, it means purchases in store are validated for tax exemption.

Items Covered by the Tax Exemption Program:

Duty-free products in Japan can be categorized into two categories: General & Consumable items.

● General items includes:

Home appliances, cameras, clothing, leather goods, shoes, watches, jewelry, and souvenirs; the total amount of the purchased items must be 5,000 yen or more at the same store at the same day (excluding tax) for exemption. General items can be used in Japan, however must be carried out of Japan within 6 months from the date of entry.

● Consumable items include:

Cosmetics, beverages, food, pharmaceuticals and pastries; The total purchase amount must be between 5,000 yen and 500,000 yen (excluding tax) at the same store on the same day on the same store for exemption. Consumable Tax-free items will be sealed  in a bag and cannot be opened, furthermore, items must be carried out of Japan within 30 days from the date of entry.

● General & Consumable items:

If both general & consumable items were bought in one purchase in the same shop, with the total purchase amount between 5,000 yen and 500,000 yen (excluding tax); there is no need to calculate tax exemption for each item individually. All items will be treated as consumable items, and will be placed in a sealed bag that cannot be opened. Items will not be allowed to be used within your stay in Japan, and must be carried out of Japan within 30 days from the date of entry.

Japan Tax Exemption｜Processes for Tax Exemption

What you will need:

Passport (stamped with the seal of verification for entry)

Purchased items for tax exemption

Receipt of the items for tax exemption

To make the tax-exempt experience more convenient and quick for tourists, Japan has launched an online "Tax-free shopping service". Tourists no longer have to take the risk of getting their passport lost when showing it for the purpose of tax exemption, simply present the QR code for exemption at the time of immigration procedures or at eligible shops and you are done! All you have to do is to register your passport information on 「Visit Japan Web」, and you will receive a 24 hours valid QR Code for the online "Tax-free shopping service".

Ways of Japan Tax Exemption: 1. Pay Purchases Immediately at Tax Exempted Price

Simply show your passport or the online "Tax-free shopping service" QR code paying at tax-free stores to pay purchases at a tax exempted price immediately.

Ways of Japan Tax Exemption: 2. Get Cash Refund at Tax Refund Counter

First checkout purchases at post-tax prices, then proceed tax exemption on the same day at the store´s designated tax refund counter.  The exempted amount will be calculated by the merchant and cash will be refunded to you on the spot.

In the unfortunate event of losing documents or personal belongings during your travels, purchasing travel insurance can provide protection. For instance, Chubb Travel Insurance can safeguard you during your journey in the following situations:

1. Lost of Traveling Documents

In case of loss or theft of your traveling documents during the trip, such as your passport, Hong Kong Identity Card, or even your flight and travel tickets, Chubb Travel Insurance will compensate you for the cost of replacing these items and any additional transportation and accommodation expenses incurred due to the need to obtain replacement documents which may delay your scheduled departure.

2. Lost of Personal Properties

In case your personal property was lost or damaged due to theft, robbery, burglary, or accidents during your trip, Chubb Travel Insurance will reimburse up to HKD 20,000 of compensation. Terms and conditions also apply on the unfortunate case of loss of cash during your trip.

However, it is important to remember that whether it's lost documents or personal belongings, you must report the loss to local law enforcement and obtain written documentation within 24 hours of the incident. If your belongings are lost on public transportation, you must report the loss to the operator within 24 hours and obtain written proof. Failure to provide valid documentation may result in a denied claim.

The above information is for reference only. All coverage, exclusions, terms, and conditions are subjected to the policy terms and conditions as stated in the policy document. For more information and details about Chubb Insurance Hong Kong Limited’s travel protection plan, please click here.