Japan is a shopper’s paradise, which allows you to have your fun and exciting shopping spree and purchase all kinds of goods like traditional crafts, cutting-edge fashion, and innovative technology. From bustling department stores to the bustling street market, Japan has everything for everyone to enjoy.

On top of that, what if they say, they will give you a free charge of tax, so you can fulfil your love for shopping to the fullest and spend your money buying many products to your heart's content?

And Yes, Japan has a free Tax Shopping against VAT or GST in other countrieswhich allows you to enjoy a refund of tax-free shopping that can be received at the end of the day.

Value-added tax/ VAT is a consumption tax imposed on the value added to a product or service at each stage of its production and distribution. It is a common tax system used in many countries worldwide, including Japan.

There are two different VAT Rates in Japan.

1. Standard VAT Rate: 10%

The standard VAT Rate includes generally eligible products like clothes, electronics, souvenirs, and many other non-consumable items.

2. Reduced Tax Rate: 8%

Reduced Tax Rate including consumable categories like medicine, cosmetics, food, drinks, and many other consumable items.

The products that can be refunded, are the products included within the VAT Rate in Japan.

General Products

The general products describe things like technologies, appliances, accessories, bags, clothes, cameras, shoes, gifts, souvenirs and watches.

Consumables

While consumables, as the word says are the products that you can consume including cosmetics, snacks, drinks, and confections.

The things that are not eligible for tax refunds include;

- Dining, where the meals that you consume at restaurants and cafes are not included in the tax-free products,
- Shipping fees, and
- Service Fees like hotel accommodation and tours are also not included within the tax-free eligible.

Japan Tax Refund is not for everyone to enjoy, but the conditions are pretty easy to follow.

1. Foreigner who visits Japan with either a Diplomat Visa, Official Visa, or Temporary Visitor’s Visa and stays in Japan within 6 months.

2. Japanese citizens who have been living abroad for 2 years or more, and have just returned home temporarily for under 6 months.

There are several conditions that you must fulfil before applying for Tax refund in Japan.

As has been mentioned before, some specific visitors are eligible for a Japanese tax refund. So make sure you are included as one of the eligible visitors mentioned above.

Yes, there is a minimum purchase amount for those who would like to enjoy the Japan Tax Refund privilege.

1. General Goods: For general goods like electronics, clothes and bags, the total purchase amount at a single store must be ¥5,000 or more, excluding tax.

2. Consumable Goods: As for consumable goods like food, drinks, cosmetics, and medicine, the purchase amount at a single stone needs to be ¥5,000 and ¥500,000 excluding tax.

Never forget to bring your passport wherever you go, because you will be needed to present your passport at the time of the purchase.

You must take the purchased items out of Japan within six months, and keep them sealed in clear plastic bags and not opened, especially if you still need to get through Japan’s airport.

Please be reminded that you need to apply for a Japan Tax Refund on the same day you purchase all of the items. Keep the Receipt, and bring all the documents needed to apply.

First of all, keep in mind that not all the stores provide a tax-free service throughout Japan. So make sure you purchase the products sold by tax-free stores, and if you are not sure, you can ask the staff available at the moment.

Once you purchase all the goods, you can proceed to a specific counter that is set up in larger retail to assist you with the procedure.

The counter usually goes by the name The Foreign Customer Service Counter which is essential for handling tax refund services. Just go to the counter with this name, and ask for their assistance on tax refund. Remember to ask them within the day you purchase the item, and don’t throw out your receipt. Show them your passport, and they will help you with a tax refund.

Don't forget to make sure of the opening hours of each store, so you will not miss your chance of getting a refund.

The next place that you need to go is the Airport. It is the place where you will truly receive your refund/ money back.

There are designated customs counters at major international airports in Japan where you can go through the refund process. Bring your receipt, and all the necessary documents to proceed with your tax refund service and let the customs officer verify tour documents and items. Once they see that everything is in order, you will receive your tax refund.

These kinds of refunds can be in the shape of cash or credit card refunds.

Once you have understood all the information laid out above, then applying for a tax refund in Japan would be easy.

1. Understand the requirements. Make sure you comply with all the requirements, including the eligibility and the product types.

2. Look for the Tax-Free Stores. There are a ton of stores that display ‘Tax-free Shop” in Japan. But again, please be reminded that not every store gives those privileges, so find yours right.

3. Ask the Staff. Before purchasing, you need to tell the staff that you want to purchase tax-free products and show them your passport.

Remember that tax-free is only available if you have purchased products from the same store for over 5,000 Yen for both consumable items and general products!

4. Don’t Throw All the Receipts and Forms. There are several possibilities when you ask the staff for a tax refund. They might give you an immediate refund, give you purchase proof documents, or attach purchase proof right to your passport which later can be refunded at the airport.

5. Do Not Open the Goods. Never open the goods out from their packaging, especially if you purchase consumable items. The stores would also seal your consumable purchase in a special bag that can’t be opened until you leave Japan.

6. In the Airport. Go to the customs counter and show them your passport, boarding pass, purchase proof, and purchased items, so they can verify them legitimately and stamp the necessary documents.

7. Receive the Refund. Once everything gets verified, you will get your refund in the shape of Japanese Yen cash or credit to credit cards, or through another possible payment method.

Now that you have known all the information you need for your tax refund in Japan, it is time for you to unleash your inner self and shop to your heart's content.

If you would like to book accommodation, services, or flight tickets to Japan, Traveloka is more than happy to help you in booking those tickets. Besides giving the best price, Traveloka also often gives numerous combos, discounts, and promotions! So don’t miss yours!

Anime Lovers! It is time for you to explore Japan and all the famous anime cafes located in Japan! Get to know more about them in Famous Anime Cafes in Japan and explore these themed hotspots for fans!