Japan Switching to Post-Departure Tax Refunds in Nov.

Tokyo, Oct. 22 (Jiji Press)--Japan will switch to a post-departure refund system for consumption tax for travelers from abroad on Nov. 1, following a series of cases in which purchased tax-free goods were resold in Japan at prices including tax.

Foreign visitors can currently buy goods at prices excluding the consumption tax at tax-free shops in Japan.

Under the new system, which is intended to prevent illegal acts by ensuring that purchased items are taken out of Japan through customs inspections at ports and airports, foreign visitors would buy goods at tax-inclusive prices and receive refunds equivalent to the tax after departure from the country.

On Thursday, Tokyo Customs demonstrated tax exemption procedures for the press at Tokyo's Haneda Airport in the run-up to the transition to the new system.

While predeparture customs checks are conducted after security inspection at present, inbound visitors, from November, will need to have their passports scanned by a dedicated machine before security inspection to be eligible for consumption tax refunds.

[Copyright The Jiji Press, Ltd.]