Japan to revise duty-free rules, refund consumption tax on return

TOKYO: Japan plans to revise its duty-free rules for foreign visitors from the latter half of fiscal 2026, sources close to the matter said on Wednesday.
Among the proposed changes is reimbursing the consumption tax upon their return to their home country.
Currently, foreign tourists to Japan are exempt from paying consumption tax, which is levied at 10%, when purchasing goods totaling 5,000 yen (1,135 baht) or more, provided they intend to use the items in their home country.
The revision comes after the government of Prime Minister Shigeru Ishiba identified a series of abuses involving the illicit trade of duty-free goods with tourists allegedly selling items for profit before they return home.
The Ishiba administration is expected to include the revision in its tax reform plans to be finalised in December.
As part of the revision, the government is likely to deploy devices at all airports and ports with international departures across Japan to verify the purchasing history of duty-free items owned by travellers, the sources said.
Foreign visitors will no longer be eligible for consumption tax exemptions if they send duty-free items from post offices in Japan, they added.