Not only in Japan, there are "shops where sales tax is not required when purchasing goods (duty-free stores) ", right? Duty-free stores are stores that sell specified goods to non-residents such as foreign tourists in a certain way, and are defined as "a store that is allowed to sell exempt from sales tax from the total purchase price".
Tax free means "shopping at stores that don't require sales tax," right?
Yes, if you want to use the "duty free store" within Japan, it applies not only to foreign tourists but also to Japanese who are on a temporary return trip.
Below I would like to explain how the tax exemption works.
table of contents
How to shop tax-free while temporarily returning to Japan for overseas residents
The basic premise is that there are "conditions" to qualify for duty-free shopping, and simply shopping as usual at the cash register does not entitle you to duty-free prices. The following is an explanation of the applicable rules.
As it turns out, the duty-free system after April 2023 will apply to those who satisfy both of the following two conditions for duty-free sales. I will write them down just in case.
▼ Condition 1
Non-resident (less than 6 months since the last stamp of return)
▼ Condition 2
The original proof of residence must show that the applicant has resided abroad for at least two years.
* Or, the original copy of the supplementary copy of the family register is also acceptable.
Below is a brief explanation of how it works.
Basics of Tax Exemption (Consumption Tax Exemption System)
The consumption tax exemption system is applicable to foreign travelers and Japanese nationals who meet the "tax exemption requirements" and are returning to Japan temporarily. The store selling certain goods (home appliances/watches/foodstuffs/cosmetics, etc.) must have a "A system that allows sales tax exemption refers to "the
However, some duty-free stores may have restrictions (designations) on who is eligible for duty-free treatment and what items are eligible for duty-free treatment. In addition, it is necessary to present the goods (the actual duty-free items purchased) at customs when leaving Japan, so please keep this in mind.
You "need" a passport to get tax free on your purchases, right?
There are some conditions for tax exemption, but basically you only need your passport! However, there are some documents that may be required depending on the situation, so I will explain them below.
The following is a summary of the conditions for receiving a tax exemption.
What are the conditions for receiving tax exemption?
The following three conditions must be met in order to actually apply for the tax exemption.
Condition 1: Location
The store must be licensed as a tax-exempt store. Not just anyone can sell tax-free goods, but each store must obtain permission from the director of the tax office that has jurisdiction over the area where the tax is paid.
Condition 2: Eligible persons
The sale must be to a non-resident. Specifically, the following two types of persons are eligible
1. non-residents with "foreign nationality
2. Non-residents who have "Japanese nationality
Simply put, it is OK if you can confirm that the applicant has been in Japan for less than 6 months. It is necessary to confirm if the applicant is eligible for the visa with a "copy of the supplementary copy of family register" or "proof of residence" made on or after the date 6 months prior to the most recent entry (return) date.
In addition, Japanese temporary returnees who fall under the above "2" category will be able to obtain a certificate of residence or a certificate of family registry as a result of the revision of the system after April 1, 2023. Must have lived abroad for at least 2 years Keep in mind that the only additional condition is that you must be able to check the "I can't see the "I can't see the "I"".
Condition 3: Eligible items
The goods must be used in normal daily life (consumable goods/general goods). If it is considered obvious that the goods are purchased by a non-resident for business use or for sale, they are not eligible for duty-free sale.
For your information, the difference between consumables and general goods is as follows
consumable goods
Total daily sales at the same store to one non-resident must be at least ¥5,000 but not more than ¥500,000.
The things that are lost when we use or eat alcohol, food, medicine, cosmetics, etc.
・Packaged in a manner specified to prevent consumption in Japan.
general goods
Total daily sales to one non-resident at the same store must be at least ¥5,000.
Clothing, bags, musical instruments, folk art and jewelry, etc. (not included in consumables).
Even though it is called "duty free," there are surprisingly detailed rules!
You might want to look over the law as it's going to be amended periodically.
Why is Japan tax free in the first place?
The reason for exempting "foreigners" from consumption tax is to prevent double taxation when they return to their home country. After the revision, "consumable goods" are now officially included in the tax exemption.
As explained above, since Japanese nationals are basically "non-residents," they are exempt from taxation in order to avoid double taxation if they are taxed in the country where they are staying.
Is there any problem with the tax exemption procedure after returning to Japan?
There are two major patterns when we say "after returning home" in a nutshell.
1. when the subject is "temporarily returning" to Japan
2. when the subject "returns" to his/her home country after visiting Japan
This article is directed toward "1" above, but the entry stamp that is placed in your passport as a landing permit stamp at immigration on your temporary return to Japan is required at the time of duty free.
In other words, when making a duty-free purchase at a duty-free store, the customer must show his/her passport (the page with the entry stamp) to make a duty-free purchase. Simply put, all you need is the stamp from the time of entry into Japan, as mentioned above "The point is to prove that you have been in Japan for less than 6 months".
However, please note that "If you pass through an automated gate, the entry stamp ", you will unfortunately not be able to receive tax exemption under the current Japanese tax exemption rules.
In the rare case of a "human error" that results in the entry stamp not being stamped, the applicant will be deemed to have "no landing permit stamp" and will not be eligible for tax exemptions.
As a reminder, please note that it is not possible to complete the duty-free procedure after returning to one's home country as described in "2" above. Please keep in mind that at present (as of June 2024), tax-free purchases in Japan can only be made at the time of purchase at a tax-free store.
Of course, there are countries other than Japan where you can apply for tax exemption after returning to your home country. Since tax exemption rules differ from country to country, it is recommended that you research this issue carefully in advance.
summary
In this issue, we have explained about tax-free purchases when returning home temporarily.
When you hear the words "duty-free shopping," you may think, "Is it a complicated procedure?" but it is surprisingly simple to use. For both foreign visitors to Japan and Japanese who are temporarily returning to their home countries, shopping at stores where they do not have to pay consumption tax is a great deal.
We hope this article will be of help to you when you visit duty free stores.
