Proposed changes to Tax Free shopping in Japan

[Seat0B]

Japan may change duty-free shopping tax waiver process for tourists: Report

This change may take effect in fiscal 2025 or later, said Nikkei Asia. Read more at straitstimes.com.

www.straitstimes.com

Nooooooooooo! After my experiences in Europe recently, reported at post #53 in my trip report, I am very against this kind of change. Fair warning that it will take a lot more time to do tax free shopping in Japan if this goes ahead.

 

[Lynda2475]

They used to do this in the UK (pre-brexit) but it was a bit of a scam with the companies processing the refunds at LHR pocketing a pretty hefty commission.

At least in Aus, there is no commission for the tax refund at the airport.

Of course post-brexit you void the VAT unless you are having your shopping shipped home to Aus, and the cost for that is usually grater than the VAT you would save.

 

[Seat0B]

They used to do this in the UK (pre-brexit) but it was a bit of a scam with the companies processing the refunds at LHR pocketing a pretty hefty commission.

Which was exactly the experience we had leaving EU - a 10 step process that took a LONG time , and netted a refund of well less than 50% of the actual tax that was supposed to be refunded.

 

[Himeno]

Is this likely to happen if it is just "proposed"?

With the current process, some places do charge commissions. Mainly the places in shopping districts where you can batch up the shopping from many stores in the same area and get a refund at a central point (eg, Tokyo Station City or Marui City Yokohama).
There are stores which do the entire process with all the paperwork, then don't charge the tax at point of sale, then others that do most of the paperwork and charge the tax, then you go to a central point, complete the paperwork for the tax free stores in that shopping center and get a refund.

If they are having problems with people getting tax free, then reselling the items within Japan, that's because of customs at the airport. The official process requires showing the goods to customs before going through departure immigration (or proving that the items have already been shipped out of Japan/are in checked baggage) and hand over the tax free paperwork.
If you can't show that the tax free goods are leaving/have already left Japan, you're meant to pay the tax to customs.
This is part of why there is a customs desk at Japanese international terminals between security screening and departure immigration.
In my experience, the customs agents have never cared and often don't even want to see the paperwork, much less the items.

 

[elanshin]

Is this likely to happen if it is just "proposed"?

With how Japanese do things, it generally does go through assuming there isn't major backlash. This is MO for the government to "maybe" do things and "propose" ideas. So that by the time it comes into effect no one is surprised at all.

If they are having problems with people getting tax free, then reselling the items within Japan, that's because of customs at the airport. The official process requires showing the goods to customs before going through departure immigration (or proving that the items have already been shipped out of Japan/are in checked baggage) and hand over the tax free paperwork.
If you can't show that the tax free goods are leaving/have already left Japan, you're meant to pay the tax to customs.
This is part of why there is a customs desk at Japanese international terminals between security screening and departure immigration.
In my experience, the customs agents have never cared and often don't even want to see the paperwork, much less the items.

I agree that right now the problem is lack of policing and this is effectively the easiest solution. To do the checking at the airport would require significant huge increase in staff at the airport as well as other tax checks for goods that haven't left thr country.

I know for a fact the current tax loop is being abused significantly. Know of many watches and other goods that may or may not have left Japan despite it being purchased duty free.