Consumption Tax, Tax-Free, Customs Duty

Consumption TaxWhy is convenience store bread 108 yen? The secret of Japan tax system

In countries with tax-included pricing, you pay only the displayed price.
In Japan, however, prices are usually shown without tax, and the product price and consumption tax are displayed separately.

• 税抜き (zei-nuki): price without tax — usually shown in large text
• 税込 (zei-komi): price with tax included — usually shown in smaller text

Japan’s standard consumption tax rate is 10%, and this tax is added at checkout.

1) Consumption tax on food

For example, if you buy bread for 100 yen at a convenience store, is the final price 110 yen? 🤔

Japan has a reduced tax rate system. For daily necessities (food and drinks, excluding alcohol and dine-in meals), the tax rate is reduced to 8%.
So the final price is 108 yen.

However, if you eat the bread inside the store, the tax changes.
Eating inside is considered dining-in, and the 10% tax rate applies. Staff may stop you if you try to eat inside with takeout tax.

Because the reduced rate applies only to takeout, most convenience stores do not allow eating inside.

2) Cafés and fast food

Eat-in: 10% tax
Takeout: 8% tax

When ordering, it is important to clearly tell staff where you will eat.

Guide to Tax-Free Shopping and Import Restrictions (Effective November 2026)This guide explains the requirements for tax-free shopping in Japan, the refund procedure starting in November 2026, and key import regulations for returning to Korea.

In Japan, Tax-Free shopping is a system where eligible international visitors are exempt from paying consumption tax on goods taken out of Japan. The standard consumption tax rate is 10%, while an 8% rate applies to certain food items and beverages.

You can use this service at tax-free stores displaying the Tax-Free or Tax Refund sign across Japan. When shopping, you must present your passport and request the tax-free procedure.

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1. Eligibility and Minimum Purchase Amount

• Eligibility: Foreign travelers staying in Japan for less than 6 months. Your passport status of residence must be "Temporary Visitor". Foreign residents living in Japan are not eligible.
• Purchase Requirement: The total purchase must be 5,000 JPY or more (excluding tax) at the same store on the same day.
• Tax-Inclusive Amount: If purchasing only items with a 10% tax rate, the total must be 5,500 JPY or more. If items with an 8% tax rate are included, the required tax-inclusive total may vary.
• Key Requirement: All tax-free goods must be taken out of Japan by the purchaser.

2. Changes from the Previous System

Previously, general goods and consumables could only be combined under strict packaging rules. Under the new system, categories are no longer separated. You only need to meet the 5,000 JPY total threshold for all purchased items combined.

Gold and platinum ingots (such as gold bars) have always been excluded from tax exemption. This is not a new restriction under the new rules.

3. Tax-Free Procedure from November 2026

1) In-Store Purchase and Refund Registration

1. Present your passport and request tax-free processing.
2. The store staff registers your tax-free purchase record digitally.
3. Pay the full price including consumption tax.
4. Follow the staff's instructions to select your refund method and complete the application.

The exact steps may vary depending on the store system.

You cannot claim a tax refund at the airport using only regular shopping receipts. You must complete the tax-free procedure at the store where you buy the items.

Available refund methods include credit cards, bank accounts, mobile payment apps, and cash. Supported methods vary by store and tax refund operator. Check supported payout options, processing fees, and payout processing times when making your purchase.

How to Apply via QR Code

1. Scan the QR code provided by the store using your smartphone to open the registration page.
2. Enter your passport details and required refund information.
3. Select your refund method and enter your card, bank, or payment app details.

Some providers may use a dedicated mobile app instead of a website.

Scanning the QR code alone does not complete your refund. Your refund will only be processed after customs clearance at the airport before departure.

Checkpoints by Refund Method

• Credit Card / Bank Account / Payment App: The refund is credited directly to your chosen method. Processing times vary by provider. Refunds may not automatically return to the payment card used at checkout, so verify if separate card registration is needed.
• Cash: Available only if the store's refund agency operates a cash refund service at your departure airport. Check the location, operating hours, and required documents of designated airport service counters or refund kiosks in advance.

2) Airport Customs Inspection Before Departure

Scan your passport at the automated kiosk located in the international departure lobby. The screen will indicate if an inspection is required.

A RED result does not mean you violated rules or your refund is denied. It is a standard procedure where customs officers physically inspect your purchased items.

The exact criteria for random inspections are not made public. Even for low-value purchases, keep your goods accessible for quick presentation. Arrive at the airport with extra time to account for possible inspection lines.

Using Visit Japan Web

At Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose, and Naha airports, you can bypass the kiosk. Connect to the dedicated airport customs Wi-Fi and complete verification via Visit Japan Web.

This service works exclusively within designated Wi-Fi zones in international departure areas. You cannot retrieve inspection results in advance over standard public internet before arriving at the airport.

3) Receiving Your Refund

Once customs clearance is completed, your refund is processed by the store or refund service operator.

Customs verification kiosks and cash refund machines are separate devices. Receiving a GREEN result at the customs kiosk does not dispense cash at that machine.

Cash refund locations, operating hours, and available currencies vary by airport and operator. Chubu Centrair International Airport provides Japanese yen cash refunds at dedicated counters and machines, but purchases from certain stores may not be supported.

4. Important Tips to Avoid Missing Your Refund

1) Do Not Consume Consumables in Japan Even Without Special Bags

• The designated tamper-evident plastic bag rule is removed from November 2026. However, if you consume food, drinks, or cosmetics inside Japan, you cannot receive a tax refund.
• In contrast, general goods such as clothing or bags may be used in Japan as long as you take them out of the country when departing.

2) Keep All Items Registered Under the Same Transaction Together

• Customs checks are conducted per receipt (purchase transaction). If any single item linked to a purchase record is missing, the tax exemption for that entire transaction may be cancelled.
• For example, if you register clothing and snacks together under one tax-free transaction and eat the snacks, you may forfeit the refund for the clothing as well.
• If you have partially used or consumed any items, notify customs officers in person rather than using the automated kiosk.

3) Retain Receipts and Authenticity Certificates for Luxury Items

• While receipts may not be requested every time, customs officers can ask to inspect them. Keep all receipts safe until departure.
• For high-value items exceeding 1,000,000 JPY (excl. tax), officers may ask for proof of purchase, warranty cards, or certificates of authenticity.

4) Complete Customs Clearance at Your Final International Departure Airport

• If you take a domestic flight before connecting to an international flight, you must clear customs at the final airport where you depart Japan.
• If you plan to check through luggage containing tax-free goods from your domestic origin point to an overseas destination, check with your airline in advance regarding customs procedures.

5) Exchanges and Returns Follow Store Policy

• Tax-free purchases are not automatically ineligible for exchange or refund. Procedures depend on store policy and item condition.
• To request an exchange or return, visit the store where you bought the item with your receipt and passport.

5. Refund Amounts and Service Fees

Processing fees and net refund amounts vary by store and refund service operator. There is no fixed universal fee rate applied equally across cards or cash.

In addition, a 10% consumption tax rate does not mean you receive a full 10% refund on the total amount paid.

In this example, the tax portion represents approximately 9.09% of the total amount paid. After deducting agency handling fees, the actual payout will be lower.

• Credit Card & Bank Account Refunds: Convenient as there is no need to visit a cash counter. However, foreign exchange conversion rates and bank processing fees may apply.
• Japanese Yen Cash Refunds: Convenient for spending at the airport or saving for a future trip to Japan. Confirm whether airport cash desks are available. Exchanging back into Korean Won later will incur currency exchange fees.

6. Tax-Free Shopping at Convenience Stores

Not every convenience store offers tax-free shopping. Look for the Tax-Free sign at the entrance before shopping.

Just like standard stores, you must meet the minimum spend requirement at the same store within a single day and present your passport.

• Until October 31, 2026: Consumables must remain sealed inside designated plastic bags and cannot be consumed or opened in Japan.
• Purchases from November 1, 2026: Pay the tax-inclusive price first. Receive your refund after airport customs verification at departure. Sealed plastic bags are no longer mandatory, but consuming consumables in Japan voids your refund eligibility.

Customs DutyJapan duty-free limits at a glance

Japan duty-free allowance on entry is as follows.
If you exceed these limits, you must declare at customs and pay duty.

1) Entering Japan

• Other goods: up to 200,000 yen
  • If total per item type exceeds 200,000 yen: only the excess is taxed
  • If one item exceeds 200,000 yen: the full value is taxed
• Alcohol: 3 bottles (760 ml per bottle)
  • Total allowance is up to 2,280 ml
  • Example: two 1,000 ml bottles are within allowance
• Perfume: 2 oz (about 56 ml) for parfum
  • Eau de toilette and eau de cologne are counted as other goods
• Tobacco:
  • Cigarettes: 200 sticks
  • Heated tobacco: 10 packs
  • Cigars: 50
  • Other tobacco: 250 g

2) Entering your home country

Duty-free limits for entering Japan and for returning to your home country are different.
Check your country’s rules before shopping.

Customs DeclarationComplete guide to customs declaration before entering Japan

1) Entering Japan

• Fill in the “Declaration of Personal Effects and Unaccompanied Articles” form by hand, or register immigration and customs declaration on the Visit Japan Web site.

Example exceeding duty-free allowance

• Example: Whisky (760 ml) ×3, brandy (700 ml) ×1, 600 cigarettes, perfume 1 oz, clothes 50,000 yen, watch 150,000 yen, handbag 80,000 yen, ring 120,000 yen → taxable
• Items exceeding the duty-free limit are taxed when entering Japan. If there are multiple items of the same type, only the lowest-taxed item is taxed.
• Alcohol tax calculation
  • One bottle exceeding the allowance is taxed.
  • Only the lowest-taxed bottle (here, brandy) is taxed.
  • 800 yen / L × 0.7 L = 560 yen
  • Amounts under 100 yen are rounded down → tax payable is 500 yen
  • Alcohol tax: 500 yen
• Tobacco tax calculation
  • Cigarettes exceeding allowance are taxed by quantity.
  • Excess quantity: 400 cigarettes
  • 15 yen × 400 = 6,000 yen
  • Tobacco tax: 6,000 yen
• Perfume duty-free rule
  • If not parfum, perfume is counted within duty-free goods.
  • In this example, perfume is not taxed.
• Other goods tax calculation
  • Tax is based on overseas purchase price and duty rate.
  • Items with higher tax are counted first for duty-free allowance.
  • Here: handbag 80,000 yen (15%) + ring 120,000 yen (15%)
    → total 200,000 yen is duty-free
  • So only clothes (50,000 yen) and watch (150,000 yen) are taxable.
  • Only 60% of overseas price is used as taxable value.
• Clothes duty calculation (50,000 yen)
  • 50,000 × 0.6 = 30,000 yen
  • 30,000 × 15% = 4,500 yen
• Watch tax calculation (150,000 yen)
  • 150,000 × 0.6 = 90,000 yen
  • 90,000 × 7.8% = 7,000 yen (consumption tax)
  • 7,000 × (22 / 78) = 1,900 yen (local consumption tax)
  • 7,000 + 1,900 = 8,900 yen

  Watches are not subject to customs duty,
  but 10% consumption tax and local consumption tax.

• Total tax summary
  • Alcohol tax: 500 yen
  • Tobacco tax: 6,000 yen
  • Customs duty (clothes): 4,500 yen
  • Consumption tax (watch): 8,900 yen
  • Total: 19,900 yen
• Taxes are charged by item type. The total amount is paid at airport customs.
• If you fill out the paper declaration form, list all purchased items as shown below.

2) Entering your home country after travel

• If your shopping exceeds your country’s duty-free limit, declare at customs and pay the required duty.