Claiming Tax-free Shopping in Japan

Shopping is one of Japan’s biggest appeals. Whether you come for the anime, the luxury brands, or the traditional craftsmanship, there is plenty to load up your luggage with.

As a bonus, Japan is one of around only 60 countries globally that offer tax-free shopping for tourists, meaning that foreign travelers are entitled to claim Japan’s 10 percent consumption tax (also known as VAT) from many of their purchases.

Tax-free shopping exempts foreign visitors from paying consumption taxes, a tax charged to people when they spend money.

It makes Japan a more appealing country to visit for those who want to maximize their budgets. Tax-free shopping is distinct from duty-free shopping.

Duty-free refers to the government tax exemption and can be utilized by anyone who has passed immigration at airports, so no special purchasing procedures are necessary. On the other hand, tax-free shopping requires a few simple procedures.

Non-residents and foreign visitors to Japan who have been in the country for less than six months are eligible for tax-free shopping. Japanese nationals who have temporarily returned to the country are also entitled to tax-free shopping. To confirm your status as a short-term visitor to Japan, you must present your passport when purchasing tax-free items.

If you plan to take advantage of tax-free shopping in Japan, ensure your passport is stamped upon your arrival. If you use an automated entry gate, you may not get a stamp, which could make tax exemption difficult.

Tax-free shopping in Japan does not apply to every purchase. Only certain product categories are eligible. Tax-free shopping products are categorized into “general items” and “consumables”. General items include home appliances, cameras, clothing, bags, shoes, souvenirs, watches, and accessories. You must spend at least 5,000 JPY in this category to be eligible for tax-free shopping. 
Consumables include cosmetics, drinks (including alcohol), food, medicine, and confectionery. Purchases in this category must be between 5,000 JPY and 500,000 JPY and must not be opened while you are in Japan to be eligible for tax exemption.

Note that consumables and general items can't be combined to attain the minimum tax threshold. To apply for the exemption, you must reach 5,000 JPY within each category.

Tax-free shopping isn’t available everywhere, but red and white “Japan. Tax Free Shop” signage is prominently displayed in shops where you can receive this perk. Airport shops, outlet malls, department stores, malls, stores in shopping districts, and touristy areas tend to offer tax-free shopping. Typically, if tax-free shopping is offered, the cashier will ask if you are a tourist when you pay, but it’s worth asking if you’re unsure. If tax-free shopping is not available, you must pay the full price.

If you are eligible for tax-free shopping in Japan and have found shops that provide tax-free shopping services, there are two ways to achieve the tax-exempt price. When you purchase your item, you can show your passport to the cashier to receive your exemption on the spot. It’s not possible to go back to the store at a later date with your passport and have the tax exemption retroactively applied.

Not all stores can provide on-the-spot tax deductions, so you may need to pay full price and then receive your tax refund at the designated tax-free counter, usually within the mall or shopping area where you bought the product(s). You will need your passport for this process, too. When visiting a tax-free counter for your tax exemption, you must do it on the date of purchase, so allow plenty of time. Along with your passport, you must bring your receipt and, if applicable, the card you purchased it with. The name on the card and passport must match and be in the same name as the person claiming tax exemption. Nobody can receive the tax exemption on your behalf.

Before, the tax counter would provide you with a Record of Purchase, which you needed to keep to present it to airport customs. You were also required to sign a Purchaser’s Pledge declaring that you will not use consumable goods in Japan and will take them out of the country within 30 days. However, in recent years, the process has been digitalized so there is no physical paper involved.

When packing to leave the country, ensure you include all of your tax-exempt items, as they may be inspected by customs within Japan so they can confirm you are leaving Japan with the tax-free items that you bought. If you have consumed or given away any items you received tax exemption on, you must pay the tax at the airport before leaving the country.

The usual rules apply when flying. Some items, such as more than 100ml of liquids, are prohibited as carry-on. Other items, such as meats and fruits, may be prohibited to carry in either your carry-on or checked baggage. Check with your airline before you travel.

Tax-free shopping has been taken a step further at some select stores. Search online for tax-free coupons in Japan, and you will find discounts of around 5–15% on brands including Don Quijote, Lotte Duty-Free, Bic Camera, and Yamada. These discounts are typically offered as an addition to the tax-free shopping.

For more shopping tips, check out some of our shopping guides below.