Tokyo, Nov. 10 (Jiji Press)--Starting this month, Japan has switched over to a new post-departure refund system for consumption tax for travelers from abroad, in response to the reselling of tax-free goods at tax-included prices within the country.
Such reselling has been an issue in Japan because consumption tax is exempt only for items intended for use outside of Japan after staying in the country for less than six months.
Under the previous system, retailers verified travelers' length of stay using passports and other documents, and sold items to them at tax-excluded prices.
Recently, the Osaka Regional Taxation Bureau imposed additional taxes of some 760 million yen on seven Chinese nationals believed to have illicitly purchased 7.7 billion yen's worth of bags, wristwatches, cosmetics and other products at department stores under the direction of resellers. However, little of the back taxes were paid because the seven had already left Japan.
Meanwhile, the Tokyo Regional Taxation Bureau imposed additional taxes of 110 million yen on department store operators Sogo & Seibu Co., Odakyu Department Store Co. and Matsuya Co. for selling items to foreign nationals who did not meet tax-free requirements.
[Copyright The Jiji Press, Ltd.]
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