Japan Implements Upfront Tourist Tax, Offers Refunds at Departure

• Japan is updating its tourist tax system to a refund-based model starting in fiscal 2026
• International visitors must pay consumption tax at purchase and can claim refunds at departure
• The new system aims to reduce fraud involving the resale of tax-exempt items within Japan
• Tourists currently enjoy tax-free shopping by presenting passports at duty-free stores
• The government is revising the system due to fraudulent resales of duty-free goods locally
• Refunds will be given at airports after customs verification and can be received in cash or via credit card
• The change simplifies regulations by not differentiating between types of goods like clothing and consumables
• Foreign visitors can no longer get tax exemptions when mailing duty-free items from Japanese post offices

Source: taxscan.in

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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