Consumption Tax Exemption for Tourists to be improved in 2014
Dec 5, 2013, 12:38 am
#1
Original Poster
Join Date: Jan 2003
Location: Yokohama (near HND, TYO)
Programs: meltdowngraded from "F" and "C" , Accor Plt, BW Dia, ihg G, UA 0.9999MM
Posts: 1,569
Consumption Tax Exemption for Tourists to be improved in 2014
Government has reportedly decided to improve tax exemption program for tourists. Consumption tax rate is going to be 8% next April up from current 5%. So, putting this in mind can save you some yens.
Items: Sake, cosmetics and snacks are added to currently eligible items =electronic goods.
Eligible prices: Over 10,000 yen to over 5,000 yen
Participating shops: 10,000 from current 4,000
Source, Japanese sankei
http://sankei.jp.msn.com/politics/ne...8500010-n1.htm
Items: Sake, cosmetics and snacks are added to currently eligible items =electronic goods.
Eligible prices: Over 10,000 yen to over 5,000 yen
Participating shops: 10,000 from current 4,000
Source, Japanese sankei
http://sankei.jp.msn.com/politics/ne...8500010-n1.htm
Dec 5, 2013, 4:33 am
#2
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
Government has reportedly decided to improve tax exemption program for tourists. Consumption tax rate is going to be 8% next April up from current 5%. So, putting this in mind can save you some yens.
Items: Sake, cosmetics and snacks are added to currently eligible items =electronic goods.
Eligible prices: Over 10,000 yen to over 5,000 yen
Participating shops: 10,000 from current 4,000
Source, Japanese sankei
http://sankei.jp.msn.com/politics/ne...8500010-n1.htm
Items: Sake, cosmetics and snacks are added to currently eligible items =electronic goods.
Eligible prices: Over 10,000 yen to over 5,000 yen
Participating shops: 10,000 from current 4,000
Source, Japanese sankei
http://sankei.jp.msn.com/politics/ne...8500010-n1.htm
Dec 5, 2013, 4:47 am
#3
Join Date: Jun 2005
Location: TYO
Programs: Tokyo Monorail Diamond-Encrusted-Platinum
Posts: 9,632
You've got some real estate there in your hand?
Dec 5, 2013, 5:13 am
#4
Moderator, All Nippon Airways and Japan
Join Date: Sep 2005
Location: TYO
Programs: NH SFC (*G), JL JGP (OWE), AS MVP, WOH E, IHG SE
Posts: 3,908
Dec 5, 2013, 7:28 am
#6
Join Date: Jun 2005
Location: TYO
Programs: Tokyo Monorail Diamond-Encrusted-Platinum
Posts: 9,632
If you take the UK as an example, non-UK domiciled ("non-doms") persons buy houses and pay less tax than residents. It's one of the reasons for the continuing boom in London property prices. I think it's a ****ing disaster, but that's how it is.
I think it's not out of the question for wealthy Taiwanese, Chinese etc. to want to buy a second home in Japan - whether by the sea, or near a ski resort, or onsen ... or, indeed, in Tokyo.
I think it's not out of the question for wealthy Taiwanese, Chinese etc. to want to buy a second home in Japan - whether by the sea, or near a ski resort, or onsen ... or, indeed, in Tokyo.
Dec 5, 2013, 10:35 am
#7
Moderator: Luxury Hotels and FlyerTalk Evangelist
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,854
Even getting 8% back won't make most all items in Japan a good deal compared to buying them elsewhere. Maybe this will slightly benefit duty-free shops at NRT and such, but that's about it.
Dec 5, 2013, 5:33 pm
#8
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
I think it's not out of the question for wealthy Taiwanese, Chinese etc. to want to buy a second home in Japan - whether by the sea, or near a ski resort, or onsen ... or, indeed, in Tokyo.
Dec 5, 2013, 5:49 pm
#9
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,437
The tax exemption program for non-Japanese visitors has a condition that tax exempt items to be consumed or used outside of Japan. Hence, tax for lodging or meals while visiting Japan is not eligible for tax exemption program. Along that line I think real estate purchase by non-Japanese will not be eligible for tax exemption under this program. 
I think by nature duty-free shops have no tax involved on sales made. I think duty-free shops at Japanese airports are not affected by consumption tax increase nor tax exemption program.
I think by nature duty-free shops have no tax involved on sales made. I think duty-free shops at Japanese airports are not affected by consumption tax increase nor tax exemption program.
Last edited by AlwaysAisle; Dec 5, 2013 at 5:58 pm
Dec 5, 2013, 6:40 pm
#10
Join Date: Jul 2005
Location: SIN and wandering.
Posts: 1,549
However it still depends on whether the company wants to participate in the tax exemption scheme. One major company which I know doesn't is Muji (which I hope will change in future).
Dec 5, 2013, 7:00 pm
#11
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,437
All I can say about duty free purchase at Japanese airports is liquors. I do not use cosmetics 
, also I have no interest in designers fashion items. I do not smoke so cigarettes and cigars are out. What I have seen at duty free shops at Japanese airports regarding price of liquors are about 10-30% less than what I typically pay at local discount liquor shops in the U.S.
I do not buy those expensive fancy liquors, I usually buy US$30-40 items so 10% cheaper is not much for my typical purchase at duty free shops.
, also I have no interest in designers fashion items. I do not smoke so cigarettes and cigars are out. What I have seen at duty free shops at Japanese airports regarding price of liquors are about 10-30% less than what I typically pay at local discount liquor shops in the U.S.I do not buy those expensive fancy liquors, I usually buy US$30-40 items so 10% cheaper is not much for my typical purchase at duty free shops.
Dec 5, 2013, 9:13 pm
#12
Join Date: Aug 2002
Location: SUV
Programs: UA *G MM
Posts: 7,017
If you buy a car at auction in Japan then they add tax to your winning bid. A lot of the buyers there are foreign dealers buying for export. I wonder if they get bagged for sales tax too?
It's not a big deal at 5% but Japan is probably on a slippery slope to 25% Scandinavian rates. The only question is if the ponzi economy collapses before they reach that stage!
It's not a big deal at 5% but Japan is probably on a slippery slope to 25% Scandinavian rates. The only question is if the ponzi economy collapses before they reach that stage!
Dec 7, 2013, 5:47 am
#13
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
If you buy a car at auction in Japan then they add tax to your winning bid. A lot of the buyers there are foreign dealers buying for export. I wonder if they get bagged for sales tax too?
It's not a big deal at 5% but Japan is probably on a slippery slope to 25% Scandinavian rates. The only question is if the ponzi economy collapses before they reach that stage!
It's not a big deal at 5% but Japan is probably on a slippery slope to 25% Scandinavian rates. The only question is if the ponzi economy collapses before they reach that stage!
Dec 7, 2013, 9:23 am
#14
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,437
I am no expert in tax, but for not to pay consumption tax up front at the time of purchase for items exported out of Japan, aren’t there have to be paperwork done prior to purchase? Also merchandise have to be arranged and handled in certain way from the time of purchase to the time merchandise physically leave Japan, which those will require prior arrangements before the purchase?
If not then purchaser have to pay consumption tax at the time of purchase then later file paperwork for refund of consumption tax? Even under that situation, merchandise had to be handled in a specific way from the time of purchase to the time the merchandise left Japan? If purchaser cannot show that a merchandise was handled in approved way between the purchase and time left Japan to ensure that merchandise was not used in Japan (no matter how short that period was) then consumption tax has to be paid?
Again, I am no tax expert but I heard something like this before. What I heard was that export/import agents do this every day. However, for an individual to buy a car in Japan, ship it out of Japan, and avoid paying consumption tax without help of export/import agents can be very difficult task in practice.
If not then purchaser have to pay consumption tax at the time of purchase then later file paperwork for refund of consumption tax? Even under that situation, merchandise had to be handled in a specific way from the time of purchase to the time the merchandise left Japan? If purchaser cannot show that a merchandise was handled in approved way between the purchase and time left Japan to ensure that merchandise was not used in Japan (no matter how short that period was) then consumption tax has to be paid?
Again, I am no tax expert but I heard something like this before. What I heard was that export/import agents do this every day. However, for an individual to buy a car in Japan, ship it out of Japan, and avoid paying consumption tax without help of export/import agents can be very difficult task in practice.
Dec 7, 2013, 10:27 am
#15
Original Poster
Join Date: Jan 2003
Location: Yokohama (near HND, TYO)
Programs: meltdowngraded from "F" and "C" , Accor Plt, BW Dia, ihg G, UA 0.9999MM
Posts: 1,569
I am no expert in tax, but for not to pay consumption tax up front at the time of purchase for items exported out of Japan, aren’t there have to be paperwork done prior to purchase? Also merchandise have to be arranged and handled in certain way from the time of purchase to the time merchandise physically leave Japan, which those will require prior arrangements before the purchase?
If not then purchaser have to pay consumption tax at the time of purchase then later file paperwork for refund of consumption tax? Even under that situation, merchandise had to be handled in a specific way from the time of purchase to the time the merchandise left Japan? If purchaser cannot show that a merchandise was handled in approved way between the purchase and time left Japan to ensure that merchandise was not used in Japan (no matter how short that period was) then consumption tax has to be paid?
If not then purchaser have to pay consumption tax at the time of purchase then later file paperwork for refund of consumption tax? Even under that situation, merchandise had to be handled in a specific way from the time of purchase to the time the merchandise left Japan? If purchaser cannot show that a merchandise was handled in approved way between the purchase and time left Japan to ensure that merchandise was not used in Japan (no matter how short that period was) then consumption tax has to be paid?
JNTO #1
http://www.jnto.go.jp/eng/ttp/sg/09-...E-Tax-fre.html
---I found a typical Japanese English mistake here. "More than 10,001 yen" should be "over 10,000 yen".
JNTO #2
Q: How do I handle tax exemption procedures?
http://www.jnto.go.jp/eng/attractions/shopping/05.html
GoTokyo.org
Tax Free Measures and Procedures (Consumption Tax Exemption)
http://www.gotokyo.org/en/shopping/tax.html
Yahoo, Answers
Im a Tourist, As soon I leave Japan I can have the 5% Tax Refund of my Shopping Stuff..?
http://answers.yahoo.com/question/in...4155712AAA07Ik
Tripadvisor discussions
Home/Asia/Japan travel forum/Sales Tax
(OT, wow, I noticed that Japan forum has 42,000 topics/threads)
http://www.tripadvisor.com/ShowTopic...Tax-Japan.html
--edited to add
TV Tokyo column video
In Japanese. LAOX Ginza Duty Free Shop is featured. They introduced a passport scanner to automate paperwork.
http://www.tv-tokyo.co.jp/mv/wbs/shindo/post_55394/
Last edited by O Sora; Dec 7, 2013 at 7:55 pm